While other states are enacting legislation to protect their residents from illegitimate debt collecting practices, Arizona may be on the way to passing a law that would make it easier for debt collectors to collect questionable credit card debt.
When Arizona residents do not pay their credit card bills, a secondary debt collector can purchase the debt from credit card companies. These secondary companies pursue customers aggressively in order to collect the debt. Some people end up paying debt they do not even owe, just to put a stop to the creditor harassment.
A bill proposed in the Arizona House would make it even easier for debt collectors by lowering the level of proof they have to display to verify that debt is owed. If the proposed bill becomes law, it might make it more difficult for consumers to dispute debts. Debt collection agencies are reportedly lobbying for the bill to pass in Washington.
Creditor harassment, wage garnishment and repossession are just some of the issues Arizona residents struggling with debt have to face. In order to gain a fresh start and eliminate harassment, filing for bankruptcy or seeking other debt relief options may be wise.
There are certain income requirements that must be met in order to qualify for Chapter 7 bankruptcy, but those who do not may still be eligible for Chapter 13. In such filings, it is sometimes possible to retain possession of assets, such as the residential home, car, retirement plans and household items, subject to certain restrictions. At the end of day, filers ease their financial burden and can start fresh.
Source: KTAR.com, "Arizona bill could lend hand to debt collectors," Jim Cross, April 30, 2012
