Debt Negotiation Could Eliminate a Chapter 13 Bankruptcy Filing

In Arizona, it is possible to have a trained bankruptcy attorney negotiate a debt reduction that allows you to avoid filing Chapter 13 bankruptcy. While you might be able to negotiate with the creditor yourself, these businesses often take an attorney more seriously, viewing them as an indication that the debtor is about to file for bankruptcy.

Many creditors in Arizona will work with your bankruptcy lawyer to reach a settlement out of court.



Since these creditors operate for-profit businesses, they might accept partial payment on fixed terms rather than risk losing any compensation in a bankruptcy. Especially in debt that is long term, receiving some repayment is preferable.

If you are considering a Chapter 13 debt repayment plan to reorganize and catch up on your outstanding debt, then debt negotiation might be a better solution for you. When considering Chapter 13 bankruptcy – unlike the “fresh start” of a Chapter 7 filing - if your debts are reduced to a manageable level, you might just be able to pay them off without having to file the bankruptcy at all.