How to Eliminate My Debt in Arizona
Arizona residents can choose from public, private and state debt elimination resources. When you are clearing past due and delinquent credit card debts and loans, check that your records are complete and up to date. You want to negotiate with the most recent billing statements and, when filing documents with state agencies, provide factual evidence of your financial standing.
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Instructions
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Order your annual credit file, which is free in accordance with the Fair and Accurate Credit Transactions Act (FACT Act). Visit Annual Credit Report's website--the only website sponsored by the three major credit bureaus, TransUnion, Equifax and Experian--to request your free copy (see Resources).
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Look for debts that exceed Arizona's statute of limitations. According to Arizona law, credit card companies cannot collect debt that is older than three years old and banks cannot enforce loan contracts that are older than six years. Debts that exceed Arizona's statute of limitations are classed as "uncollectable" and can be legally eliminated.
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Type a letter of dispute. Identify the owner of the debt and the debt amount, circling it on a credit file if possible. Cite Arizona's Statute of Limitations law and refuse to fulfill the terms of your credit card or loan agreement. Mail a copy to the creditor and the three major credit bureaus.
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Clear debts you cannot dispute through a debt settlement arrangement. Arizona law permits consumers to settle debts for a fraction of the debt amount. Start negotiations low, say one cent on the dollar. Banks and creditors must reduce a debt's value to zero once it passes the six-month mark, so play up the age of older debts to negotiate the smallest payout. Request the terms of your settlement agreement in writing.
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Eliminate debt in Arizona through Chapter 7 bankruptcy. According to ArizonaBankruptcyLaw.com, "If you cannot pay at least $6,000 over the next five years ($100 per month) to your unsecured creditors after your expenses, you may qualify for bankruptcy." File a two-page petition at your Arizona district bankruptcy court and pay the applicable fee, which, as of December 2010, is $274.
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Tips & Warnings
Contact the Arizona State Banking Department at (602) 255-4421 as to whether your financial lender has a disciplinary record. File a complaint with the Arizona Attorney General if you believe you are the victim of predatory lending practices.
Debt consolidation and credit counseling are alternatives to bankruptcy.
