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Phoenix-based law firm specializing in debt settlement and bankruptcy representation, led by attorney Leonard V. Sominsky with 15+ years of experience helping 1,000+ clients.
Data compiled from public sources
Leonard V. Sominsky, ESQ., PC is a Phoenix-based law firm that has been handling bankruptcy and debt cases since 2000. The firm focuses primarily on debt settlement and bankruptcy representation for individuals overwhelmed by consumer debt. Over 15 years, the firm has provided legal assistance to more than 1,000 clients facing financial hardship from job loss, medical emergencies, and other circumstances.
The firm offers debt settlement services as an out-of-court negotiation process where their attorney contacts creditors to arrange partial payment agreements. They handle multiple debt types including credit card debt, medical bills, unsecured loans, car repossession balances, business loans, home loans, and lawsuits. Beyond settlement, they also advise clients on consolidation and bankruptcy options, positioning themselves as a comprehensive debt resolution legal service rather than a settlement company.
What distinguishes this firm is its positioning as a licensed law practice rather than a non-legal debt settlement company. They emphasize the complexity of creditor negotiation and explicitly warn clients against "fly-by-night" debt relief companies. They offer free one-hour consultations and advertise capabilities to stop late fees and penalties through negotiation. The attorney has personal experience spanning two decades in bankruptcy law.
However, the website acknowledges important limitations: debt settlement cannot protect credit scores from damage, cannot reduce mortgage or car payments, and cannot prevent foreclosure. The firm is a traditional law office focused on legal representation rather than a listed debt settlement company, which may mean less consumer-friendly pricing structures or payment plans compared to dedicated settlement firms.
This is state-level context for Bankruptcy Services consumers in Phoenix, AZ. It does not confirm that United States Debt Settlement or this specific location is licensed.
State regulator
Arizona Department of Insurance and Financial Institutions
Consumer protection
Relevant law: Arizona Credit Services Organization Act (A.R.S. § 44-1701 to 44-1712)
Registration: Required with Arizona Department of Insurance and Financial Institutions
Upfront fees: Listed as prohibited in the current CreditDoc state summary
Source: CreditDoc state-law summary and listed public regulator resources. Verify licensing directly with the listed state regulator before relying on a provider.
United States Debt Settlement offers 12 services including Debt settlement negotiation with creditors, Bankruptcy representation (Chapter 7 and Chapter 13 implied), Credit card debt settlement, Medical bill settlement, Unsecured loan settlement, and 7 more.
United States Debt Settlement has profile signals associated with Individuals facing multiple unsecured debts (credit cards, medical bills, personal loans) who want legal representation, People considering bankruptcy who want professional evaluation of debt settlement as an alternative, Clients in Arizona seeking a licensed attorney rather than a non-legal debt settlement company.
Key strengths: Licensed attorney with 15+ years of bankruptcy experience (since 2000) and track record of 1,000+ clients served; Offers free one-hour consultation to evaluate debt situation; Can negotiate to stop late fees, penalties, and harassing creditor phone calls. Areas to consider: Website does not clearly disclose fee structure—no pricing information provided for services; Cannot prevent credit score damage from settlement arrangements.
In the Bankruptcy Services category, comparable providers include Allan D. NewDelman PC / Bankruptcy Attorney, Azeros Legal, PLLC, Low Cost Bankruptcy Center of Phoenix. Each company has different strengths, so compare services, pricing, and consumer complaint records before deciding what to do next.
CreditDoc Profile Note
This is a law firm providing bankruptcy and debt settlement legal services, not a listed debt settlement company. It is best suited for Arizona residents with unsecured debt who want licensed attorney representation and prefer exploring settlement before pursuing bankruptcy. Critical caveat: the firm cannot protect credit scores, reduce secured debts, or prevent foreclosure, and actual fee structures are not disclosed on the website.
Allan D. NewDelman, P.C. is a Phoenix-based bankruptcy law firm specializing in Chapter 7 bankruptcy representation for individuals seeking debt relief.
Profile signals: Phoenix-area individuals with unsecured debt seeking Chapter 7 bankruptcy discharge, Debtors wanting local representation familiar with Arizona courts and regional bankruptcy procedures
Arizona-based bankruptcy law firm founded by Nathan J. Brelsford, a tax attorney admitted to U.S. Tax Court, handling Chapter 7, Chapter 13, and IRS tax resolution cases.
Profile signals: Arizona residents filing Chapter 7 or Chapter 13 bankruptcy who need personalized, responsive attorney representation, Taxpayers with complex IRS debt who also need bankruptcy filing, benefiting from attorney's dual tax and bankruptcy experience context
Phoenix-based bankruptcy law firm offering Chapter 7 and Chapter 13 filing services with low attorney fees and flexible payment plans based on ability to pay.
Profile signals: Arizona residents facing foreclosure, wage garnishment, or creditor harassment seeking immediate relief, Individuals wanting to file Chapter 7 or Chapter 13 bankruptcy remotely without office visits
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A plain-English breakdown of every credit score range — what each number actually means for your loans, cards, and daily life, plus exactly what to do about yours.
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Read guide →New to credit and lending? Here are the key terms used on this page, explained in plain language with real-number examples.
When you fail to repay a loan according to the agreed terms — usually after 90-180 days of missed payments. It's the point where the lender gives up on collecting normally.
Default triggers severe consequences: credit score drops 100+ points, the debt may be sent to collections, you could be sued, and your wages or assets could be seized.
Example
You miss 4 consecutive car payments. The lender declares your loan in default, repossesses your car, sells it at auction for $8,000, and you still owe the remaining $5,000 (called a deficiency balance).
A federal agency created in 2010 to protect consumers from unfair financial practices. They write rules, supervise financial companies, and handle consumer complaints.
The CFPB is your most powerful ally against high-cost lenders. Filing a complaint with them gets a response from the company within 15 days — companies take CFPB complaints seriously.
Example
A debt collector calls your workplace after you told them to stop. You file a CFPB complaint online. Within 15 days, the collection agency responds and agrees to stop. The CFPB tracks complaint patterns across all companies.
A federal law that limits what debt collectors can do. They can't call before 8am or after 9pm, can't harass you, can't lie, and are required to stop contacting you if you request in writing.
Knowing your FDCPA rights stops abusive collection tactics. If a collector violates the law, you may have a right to sue for up to $1,000 per violation plus attorney fees.
Example
A collector calls your workplace 3 times after you told them not to. That's 3 FDCPA violations. You hire a consumer attorney (free — they get paid by the collector). The collector settles for $3,000.
A court order that requires your employer to withhold part of your paycheck and send it directly to a creditor. Usually happens after a creditor sues you and has obtained a judgment.
Federal law limits garnishment to 25% of disposable income. Some states have lower limits. Student loans and taxes can be garnished without a court order.
Example
You owe $8,000 on a defaulted credit card. The bank sues, gets a judgment, and garnishes your wages. On a $3,000/month net paycheck, they take $750/month until the debt is paid.
A time limit (typically 3-6 years, varies by state) after which a creditor can no longer sue you to collect a debt. The debt still exists, but they lose the legal power to force payment.
Knowing your state's statute of limitations prevents you from being tricked into paying debts that are legally uncollectable. Beware: making a payment can restart the clock.
Example
You have a $3,000 credit card debt from 2019. Your state has a 4-year statute of limitations. In 2024, a collector calls demanding payment. The statute has expired — they cannot sue you.
A type of bankruptcy where you keep your assets but follow a court-approved 3-5 year repayment plan to pay back some or all of your debts. Stays on credit for 7 years.
Chapter 13 may be more relevant than Chapter 7 if you have a home or assets you want to keep. It can stop foreclosure and let you catch up on mortgage payments over 3-5 years.
Example
You're 3 months behind on your mortgage and have $30,000 in credit card debt. Chapter 13 stops foreclosure and puts you on a 5-year plan: you pay $600/month to catch up on the mortgage and pay 40% of the credit card debt.
A type of bankruptcy that wipes out most unsecured debts (credit cards, medical bills) by liquidating non-exempt assets. It stays on your credit for 10 years.
Chapter 7 gives you a fresh start but at a steep cost: 10 years on your credit, difficulty getting loans, and you may lose assets. Income is generally required to be below your state's median to qualify.
Example
You have $45,000 in credit card debt and earn $35,000/year. Chapter 7 erases the debt. You keep exempt property (basic car, household items). Your score drops to ~500 but you're debt-free.
When a creditor declares your debt a loss after 180 days of nonpayment and removes it from their books. But you still owe the money — they just stop expecting to collect it themselves.
A charge-off is one of the most damaging entries on your credit report and stays for 7 years. The debt is usually sold to a collection agency who will pursue you for it.
Example
You stop paying your $4,000 credit card. After 180 days, the bank charges it off and sells the debt to a collector for $800. The collector now contacts you demanding the full $4,000 (they profit from what they collect above $800).
When an unpaid debt is transferred or sold to a third-party collection agency that specializes in recovering the money. Collection accounts appear on your credit report for 7 years.
Even a $50 collection account can drop your score 50-100 points. Some newer FICO models (FICO 9) ignore paid collections, but many lenders still use older models.
Example
An old $200 gym bill goes to collections. It appears on all 3 credit reports and drops your 720 score to 640. Paying it helps with newer scoring models but under FICO 8 (still widely used), a paid collection still hurts.
Combining multiple debts into one single loan with one monthly payment, ideally at a lower interest rate. It simplifies repayment and can reduce total interest.
Consolidation is generally most useful when you get a lower rate than your existing debts. But it doesn't reduce what you owe — and extending the term can mean paying more total interest.
Example
You have: $5,000 at 22% (credit card), $3,000 at 18% (store card), $2,000 at 25% (payday loan). A $10,000 consolidation loan at 11% saves you ~$2,100 in interest over 3 years.
Negotiating with creditors to accept less than the full amount you owe — typically 40-60 cents on the dollar. Usually done after you've already fallen behind on payments.
Settlement can save thousands, but it severely damages your credit (settled accounts show for 7 years) and the IRS may tax the forgiven amount as income.
Example
You owe $15,000 on a credit card and negotiate a settlement of $7,500 (50%). You save $7,500 but: your credit drops 100+ points, the account shows 'settled' for 7 years, and you may owe taxes on the $7,500 forgiven.
The percentage of your monthly gross income that goes toward paying debts. Lenders use it to judge whether you can afford another loan payment.
Most lenders want DTI below 36% for personal loans and below 43% for mortgages. Above that, you're considered overextended and likely to be denied.
Example
You earn $5,000/month gross. Your debts: $1,200 mortgage + $300 car + $200 student loans = $1,700/month. DTI = 34%. A new $400/month loan would push you to 42% — risky for lenders.
A court ruling that says you legally owe a specific amount to a creditor. It gives the creditor power to garnish wages, freeze bank accounts, or place liens on your property.
Judgments are enforceable for 10-20 years (varies by state) and can be renewed. They give creditors far more collection power than a simple unpaid debt.
Example
A credit card company sues you for $8,000 and has obtained a judgment. They can now garnish 25% of your paycheck ($750/month on a $3,000 net salary) and freeze your bank account.
Want to learn more? Read our Financial Wellness Guides for in-depth explanations and practical advice.
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