Arizona Debt Relief: Is It Legitimate? 5 Things to Know

Ben Avatar

You may have seen ads for Arizona Debt Relief Org or you are just considering debt relief in general due to a financial hardship.

You are in the right place.

The purpose of this article is to help you understand the legitimacy of debt relief in Arizona . The best way to gauge the legitimacy of a program might be to consider online reviews. However, you may find that there are not many reviews covering Arizona debt relief. That said, we found some interesting insights. Here’s what we’ll cover:

  1. What is Arizona Debt Relief?
  2. How Much Does Arizona Debt Relief Cost?
  3. Does Arizona Debt Relief Provide Emergency Debt Relief?
  4. Whether Arizona Debt Relief is legitimate
  5. Pros and Cons of Debt Relief Options

What Is Arizona Debt Relief?

Arizona debt relief is an organization that links debtors with other debt settlement companies. Or, it is a financial hardship option when you cannot afford your debt.

Debt relief is a broader term, which refers to getting assistance to help with your debt. Here’s the various debt relief options:

  • Arizona Chapter 7 Bankruptcy
  • Arizona Chapter 13 Bankruptcy
  • Debt Relief
  • Debt Management

Please note that many people consider Arizona when they are facing a hardship such as Arizona wage garnishment or a debt collection lawsuit or something that is forcing them to consider their options. Also, you may be curious how popular the bankruptcy option is.

Is Arizona Debt Relief a Company?

Arizona Debt Relief is a company that refers customers to debt settlement companies. Therefore, you don’t sign up with them directly. You will be signing up with the company they recommend you to. Here’s a picture that you may be familiar with:

It appears that Arizona debt relief org often refer customers to ClearOne Advantage, so it’s important to understand the fees that you will be paying through the company that it recommends you to.

Finder states that ClearOne Advantage usually charges 25% of enrolled debt, which is quite high.  If you opt to use our calculator, you will note the debt settlement companies we recommend charge between 15 and 18% of the enrolled debt, which can help you save thousands of dollars.

Arizona Debt Relief Org Reviews

Arizona Debt Relief Org is part of Envoy Media Group, which does have a BBB page with 2 reviews, and there’s a review on Finder for one of the state debt relief articles that mentioned getting calls over 20 times in a single day.

What can be helpful is to consider the reviews of who Arizona refers you to. For example, if you are referred to ClearOne Advantage, you may look for ClearOne Advantages reviews that we cover extensively in an article.

How Much Does Arizona Debt Relief Cost?

The cost of Arizona debt relief is one of the most important things to consider because you are looking for debt relief.

At Ascend, we believe that debt relief may be a good option, but it’s only in the context of understanding all of your options and understanding the cost of that option. This is exactly why we built a free debt relief cost comparison calculator below that helps you compare the cost of debt relief, debt management, bankruptcy, and debt payoff planning. It’s 100% free, and doesn’t even require an email address.

Let’s cover some of the costs.

Chapter 7 bankruptcy is often the cheapest and fastest Arizona debt relief option, but you often have to qualify using the Arizona bankruptcy means test, which is based on your income, household size, and state. If it’s helpful, here are the income limits for bankruptcy cases filed on or after April 1, 2024.

# of PeopleAnnual Income
1$66,340
2$83,660
3$94,526
4$107,944
5$117,844
6$127,744
7$137,644
8$147,544
9$157,444

From using the calculator, you will notice that the cost to file bankruptcy in Arizona is $313 for a Chapter 13 and $338 for a Chapter 7 bankruptcy. You may notice that does not include attorney fees though. Attorney fees may vary depending on where you live. For example, the Chapter 7 attorney fees are estimated at $1,500 in Phoenix vs $1,100 in Mesa. For Chapter 13 bankruptcy in Arizona the estimated attorney fee is $4,500.

You may also see that you are at risk of losing assets such as your home or vehicle if you have too much equity in a vehicle. To protect these assets, you can look at the Arizona bankruptcy exemptions. For example, you can see the homestead exemption information below (source):

“Ariz. Rev. Stat. § 33-1101A. $150,000 for real property, an apartment, or mobile home you occupy to; sale proceeds exempt 18 months after sale or until new home purchased, whichever occurs first”

For debt management in Arizona, you’ll see the estimated monthly payment driven by potential interest rates reduction. Debt management is often most helpful if you have high interest credit cards.

For debt settlement, you’ll notice an estimated fee amount and an estimated settlement amount as the companies are trying to negotiate amounts (from say $10,000 to $5,000).

What is Emergency Debt Relief

Many people are looking for emergency debt relief in Arizona, often capturing the most recent events. For example, a debt relief company may be pitching inflation debt relief when inflation is high.

If a company is promising you Arizona emergency debt relief, please do your research to make sure that they are not just trying to pitch to you a debt relief program with high fees.

Is Arizona Debt Relief legitimate?

Many people in Arizona experience hardship that requires some sort of debt relief. Thankfully, there are legal debt relief options such as bankruptcy in Arizona to help you get relief from your debt and a fresh start.

In Arizona, you may also find legal aid options helpful that can help you get the help you need at a lower cost.

Please note that not everyone qualifies for free legal aid. If you are at or below the Arizona poverty guidelines, you potentially could also have your bankruptcy filing fee waived. Below are the Arizona poverty guidelines.

# of People150% Poverty Guideline
1$15,060
2$20,440
3$25,820
4$31,200
5$36,580
6$41,960
7$47,340
8$52,720
9$58,100
* Add $5,380 for each individual in excess of 9.

Pros and Cons of Debt Relief Options

Finally, let’s cover some of the pros and cons of debt relief in Arizona. You can find this list of pros and cons in our debt relief calculator results as well.

Chapter 13 Bankruptcy Arizona

Pros:

  • Legal protection against creditors
  • Property protection against creditors
  • No taxes on unpaid debt
  • No qualification necessary (as long as under Chapter 13 debt limits)

Cons:

  • High damage to credit report (on public record)
  • High damage to credit score
  • Possible low availability to credit after filing
  • Low payment flexibility
  • Length of time 3-5 years
  • Low to medium success rate

Chapter 7 Bankruptcy Arizona

Pros:

  • Length of time ~ 90 days
  • Most inexpensive option: ~$2,000
  • Legal protection against creditors
  • No taxes on unpaid debt
  • Eliminates most unsecured debt
  • High success rate

Cons:

  • High damage to credit report
  • High damage to credit score
  • Possible low availability to credit after filing
  • No property protection above exemption
  • On public record
  • Must qualify for Chapter 7 in Arizona

Debt Settlement

Pros:

  • Potential savings can be significant
  • Payment flexibility for inconsistent income
  • Can be < 1 year with access to capital
  • May access credit sooner than bankruptcy
  • Account cancellation creates accountability

Cons:

  • Medium to high damage to credit report
  • Medium to high damage to credit score
  • Potential taxes on forgiven debt
  • May be sued and collections can continue
  • Late fees and interest
  • On Public Record (if creditor sues)
  • Low to medium success rate

Should I Pursue Debt Relief in Arizona?

Pursuing debt relief in Arizona is ultimately your decision and you know your finances best. For example, are you living in Tucson and seeing that your rent is going to continue to rise? Are you facing inflation pressures from living in Phoenix and trying to live on a Arizona minimum wage of $12.80 per hour?

What you can do (if helpful) is take the free Arizona debt relief calculator below that can help you estimate the costs and pros and cons of each of your options.

Tagged in :

Leave a Reply

Your phone number and email address will not be published. Required fields are marked *

Reviews

★★★★★

5.0 stars from 280+ reviews

Synthia DuBose

 08/21/2023

My family was grappling with the burden of credit card debt. We had explored various avenues, including debt relief companies and consolidation loans, but everything seemed dubious and left us feeling uncertain. That all changed when I came across Ascend and had the opportunity to connect with Justin. He reached out to me on the very same day, and from that point forward, things took a turn for the better.

I provided Justin with an overview of our financial situation, our objectives, and the timeline we hoped to achieve our goals within. He promptly outlined the possible courses of action and presented a thorough breakdown of our various options. What truly stood out was Justin’s approach—he never pressured me into making a quick decision. Instead, he offered me the information and allowed me to ask questions at my own pace.

Upon selecting the path we wanted to pursue, Justin facilitated our connection with a non-profit organization. Much to our delight, they exhibited the same level of courtesy, expertise, and patience that Justin had demonstrated. In retrospect, the entire experience instilled a sense of confidence within us. We now believe we have a solid foundation and are well on our way to achieving financial success!

Dahveed Krisna

 07/26/2022

Ben and his assistant Jeffrey from Ascend Finance did an awesome job helping me to find an attorney who could talk with me openly and honestly about Chapter 13 as an option for my financial situation. Before finding out about Ascend’s bankruptcy calculators, I was stuck on a wheel of countless offers for consolidation loans, but always steered towards debt settlement or debt management plans over and over again due to my credit score and high utilization percentage. Based on data I entered into Ascend’s calculator, Ben and Jeffrey reviewed my situation and quickly connected me with a skillful, experienced bankruptcy attorney. I finally feel like I’m on the best path to being debt free; one that will save me a lot more money than any of the debt settlement or debt management programs that other companies and agencies have offered me… THANKS Ben, Jeffrey and Ascend!!

JorJor Binks

 02/09/2024

These guys are truly a beacon for those of us with too much debt. From the start where I found Ben on the YouTube channel Ascend I have been treated as a real person by real people. Even getting a personal call helping me figure things out. I went through one of the lawyers recommended by Ascend and as of January 2nd I am debt discharged, and already have a great credit card from Mission Lane for $2000. Things are getting back into place and my life feels so much less stressful due to the weight of debt being off my shoulders.

PLEASE give these guys a call if you are even considering any sort of debt relief be it bankruptcy, consolidation, or whatever other types of debt relief are out there. I can’t thank the Ascend team enough. (I was not paid to post this, or told to do this. I am genuinely so thankful to have the help when I needed it most♥️)

Categories