Declaring bankruptcy to end creditor harassment

Some Arizona residents may be familiar with the term "under collection," which means that companies have passed on their debt to collection agencies who then bombard debtors with harassing phone calls. At times, these collection methods amount to serious harassment but debtors may not know how to put an end to the barrage.

Instead of considering filing for personal bankruptcy, an option that can result in freedom from most bills while allowing them to retain possession of some assets, some debtors may choose to try other, often unreliable, methods to end their debt.

According to the National Association of Consumer Bankruptcy Attorneys, approximately half a million people across the country are enrolled in some form of debt settlement program that makes claims promising to end debt within a specified period of time, often as short as 24 to 48 months. The regretful news, according to Consumer Reports Magazine, is that these debt settlement programs are not very successful at anything other than granting fleeting peace of mind to debtors.

Arizona residents struggling with credit card debt should not be embarrassed to talk to credit card companies to negotiate their debt and payment plans. It may be better to talk to the companies rather than debt collection agencies.

Those debtors who owe significant amounts to credit card companies unwilling to negotiate should consider filing for bankruptcy to put an end to both creditor harassment and wage garnishment. The reliable option can help debtors regain control of their financial lives and obtain meaningful debt relief while retaining possession of their homes and vehicles.

Source: Fox Business, "Who should you ask for help? Credit Card Companies or Credit Counselors?," Peter Andrew, Nov. 12, 2012