If you have reached a point where you are a considering filing for bankruptcy, you should consider discussing the issue with an attorney that offers the services of debt settlement. Often you will find that a law office that offers this service will also offer bankruptcy services. If after a consultation you need to file for bankruptcy, you can use the same law firm.

Keep in mind that there are long term consequences that must be explained to you before you file for bankruptcy. This of course assumes that you qualify to file; the laws have tightened up in the last few years and it is not as easy to qualify as it used to be. If you do qualify, you need to consider the alternatives to Arizona bankruptcy. The alternative to a bankruptcy is to negotiate with your creditors over your debts; this includes both the monthly payments, interest, and sometimes the total amount owed. Creditors will often be willing to restructure debt for people in dire financial situations, but the offer must be fair, and done through an attorney. Creditors are less likely to pay attention to an offer from the borrower.

Arizona debt negotiation, when done properly, will always be done by an attorney. An attorney will be able to explain the financial repercussions of a bankruptcy to you and contrast that with the effects of debt settlement. One of the issues that can be explained is the effect of bankruptcy on your credit rating. The number of years that a bankruptcy will stay on your credit report are greater than a few bad marks for late payments. The presence of a bankruptcy on your report will have such a strong influence on your credit score, that there is very little you can do to counteract it.

Once you file a bankruptcy you will not be able to file again for many years, so you want to make sure the time is right to file. It may be best to attempt a debt settlement first and if it works, you will be able to pay back your debts and salvage your credit rating. You can save bankruptcy as an option in the future.

A person who is a good candidate for debt settlement is someone who can pay most of their bills each month; A person who would be able to meet all of their debt obligations if only a few of the monthly payments were lower.

There are several law firms in the Phoenix area that offer a free consultation. If you are short of cash, lawyers understand this and will offer payment plans. Most importantly you should understand that debt settlement can be a good alternative to bankruptcy, but this type of debt negotiation should be done by an attorney. There are many companies that offer to help settle debt by negotiating with your creditors, some of the businesses are well intentioned, while others are unscrupulous and will only take your money. Phoenix debt negotiation, in order to have it done properly. should always be done through an attorney.