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Arizona Bankruptcy Questions & Answers
2 Answers | Asked in Bankruptcy for Arizona on
Q: During covid19 pandemic I've spent my 2019 return instead of relinquish to trustee on my rent. What are possible outcome

filed bankruptcy in January 2020. I recieved a 2019 return in February. Needing to pay bills because of lost income we used our return to pay rent. We lost over 2k monthly because wife was furloughed and unable to obtain a income.

Diane L. Drain
Diane L. Drain
answered on May 15, 2020

This is a very serious situation. The trustee has an obligation to collect the estate's percentage of any non-exempt property, which includes tax refunds. If you have an attorney - contact them immediately. If you do not have an attorney - make arrangements to pay the appropriate amount to... Read more »

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2 Answers | Asked in Bankruptcy for Arizona on
Q: Im in AZ, do I have to turn over my stimulus check to my trustee? My lawyer had his license suspended so I can’t ask him
Timothy Denison
Timothy Denison
answered on Apr 13, 2020

Not likely. Most jurisdictions are not taking them.

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2 Answers | Asked in Bankruptcy for Arizona on
Q: We filed for bankruptcy in 8/19, discharged 01/20. The trustee reopened it and took refund. Can they take stimulus?

We filed for bankruptcy in 08/19, got discharged in 01/20. The trustee reopened bankruptcy and took our 2019 refund. Now that the bankruptcy is reopened are they going to take the stimulus check too?

Timothy Denison
Timothy Denison
answered on Apr 8, 2020

Fought full they can take stimulus check as it is not income.

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3 Answers | Asked in Bankruptcy for Arizona on
Q: Are memos on checks legally binding in a bankruptcy case?

We are the creditor in the BK for owed assessment dues in an HOA...the debtor objected to our proof of claim so we amended. The debtor continues to object claiming we are not using checks written to the hoa because in the memo line they say something unrelated to dues.

Timothy Denison
Timothy Denison
answered on Mar 30, 2020

No. The j my Enid are not binding.

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3 Answers | Asked in Bankruptcy for Arizona on
Q: chapt 7 stimulus checks

hello I am in the middle of a chapt 7 BK will my Trustee get our stimulus checks. My wife is not in my BK

Stuart Nachbar
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Stuart Nachbar
answered on Mar 29, 2020

I do not believe that the stimulus checks will go to the trustee. It is a post petition payment in your case and according to the stimulus bill, it is exempt from income on the means test.

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2 Answers | Asked in Bankruptcy for Arizona on
Q: If I am planning to file a Ch 13 Bankruptcy, but have not yet, can I keep my tax return if I receive it BEFORE filling?

I plan on filing in the next couple weeks, but hoping I can use my return for this virus & not having good enough income, can I if I have not actually filed yet? It was an error in the questioned, it was supposed to say "filing", NOT "filling". Sorry.

Diane L. Drain
Diane L. Drain
answered on Mar 25, 2020

Don't file a chapter 13 unless you have a very experienced chapter 13 attorney (with more than 10 years of chapter 13 work). The failure rate with a good attorney is 40-50%. The failure rate with a bad attorney (one who does not care about their clients) is 95%. The failure rate for those... Read more »

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2 Answers | Asked in Bankruptcy for Arizona on
Q: My refund was captured. How long until I get the money that the estate in not entitled to? Any laws on the timeframes?

Filed bankruptcy April 1 2019. Refund issued Feb 29, 2020 captured by trustee. He's not returning my calls, so I'm curious about how long it may , or usually takes to get the money that the estate isn't entitled to. Is there anything in the statutes that outline this process?

Thank you

Diane L. Drain
Diane L. Drain
answered on Mar 24, 2020

The trustee has an obligation to collect all non-exempt assets, which includes tax refunds for the year you filed a bankruptcy. But, only a potion of the refunds. The trustee is not going to return your call if you have an attorney. If you don't - contact the United States Trustee's... Read more »

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2 Answers | Asked in Bankruptcy for Arizona on
Q: Is term life insurance considered an asset in filing Chapter 7 bankruptcy in Arizona?
Diane L. Drain
Diane L. Drain
answered on Mar 20, 2020

It is listed on Schedules A/B and exempted (for the proper amount) on Schedule C. You are best working with an experienced bankruptcy attorney. We offer a free consultation.

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3 Answers | Asked in Bankruptcy for Arizona on
Q: We filed bankruptcy in 2009. It was discharged in 2009 and closed in 2012. Wells Fargo owed us money for putting forced

Insurance on our car, it got repoed, now trustee is saying she can keep our money to send to creditors, is this true?

Diane L. Drain
Diane L. Drain
answered on Mar 16, 2020

Depends on when the vehicle was repossessed and the law of the state where you live.

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2 Answers | Asked in Bankruptcy for Arizona on
Q: I filed chapter 7 in April 2018, discharged in July. Irs kept most of refund for back taxes, but I owe trustee 1200.00

Can they keep all of my refund this year or just 1200.00 owed to trustee?

Trustee office said they'd ask trustee for a repayment plan in October 2019, but I've had no response and have sent them many emails asking. I'm expecting a big refund and wondering if they're keeping it all

Diane L. Drain
Diane L. Drain
answered on Feb 15, 2020

You need to contact your attorney because there are more issues you have not discussed. If you do not have an attorney, there is a Self-Help Center at the Bankruptcy Court. Call them to make an appointment to talk with an experienced bankruptcy attorney - 602-682-4007.

I hope this is helpful.

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2 Answers | Asked in Bankruptcy for Arizona on
Q: Ok I’m in az filled bank rupt last feb do I owe my tax return this year to. If I owe 2 months do I divide it by two

Since I filled last feb and send them a check. Also case was reopened in November to distribute last yrs tax return or should I be clear now since I paid the returns last yr

Diane L. Drain
Diane L. Drain
answered on Feb 6, 2020

If you have an attorney, please contact them because this is what you paid them for. So, I am going to assume you do not - the trustee collects tax refunds for the year you filed and any prior years that you have not collected. If you filed the bankruptcy in 2019, then the trustee can collect... Read more »

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2 Answers | Asked in Bankruptcy, Civil Rights, Domestic Violence and Small Claims for Arizona on
Q: My ex boyfriend sued me for gifs after I got an order of protection against him.

I was served while walking in to court for one of the orders of protection since he was appealing it. I didn’t respond because I was confused and I was waiting for a court date. Now I’m in default and they want to garnish my wages. I’m a single mom with only my income. I need help what can I do?

Diane L. Drain
Diane L. Drain
answered on Feb 1, 2020

Thank you very much for contacting my office. I realize this is a challenging time for you and that you have lots of questions. It is okay to be anxious and overwhelmed; the trick is not to fight it. Instead, you are on the right track by educating yourself about options to help deal with your... Read more »

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1 Answer | Asked in Bankruptcy and Consumer Law for Arizona on
Q: Is a debtor 'allowed' to have both an awarded judgement AND still report the debt on my credit report?

I have a debt/collections I am trying to pay off but just found a judgement in county records against me for the same debt by the same company.

The judgment is not appearing on my credit report, only the collection itself. Is it legal to have both a judgement won and filed in a recorders... Read more »

Timothy Denison
Timothy Denison
answered on Jan 22, 2020

You should notify all three credit bureaus that they are the same debt. It should only be reported as the judgment.

3 Answers | Asked in Bankruptcy for Arizona on
Q: Removing garnishment - Chapter 7

Someone owes me money and I won a default judgement and just filed for garnishment. I received notice that they are filling for Chapter 7. The email from the her lawyer said I had to contact her employer to remove the garnishment. Do I need to do this, or should they do this? Honestly, I... Read more »

Timothy Denison
Timothy Denison
answered on Jan 13, 2020

Yes. If they filed bankruptcy, you must release the garb immediately or run the risk of violating the automatic stay and being sanctioned for it

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2 Answers | Asked in Bankruptcy for Arizona on
Q: No I filed in feb 2019 I gave them 2018 tax refund
Diane L. Drain
Diane L. Drain
answered on Jan 6, 2020

The bankruptcy estate has a right to a pro-rata share of your 2019 refunds.

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3 Answers | Asked in Bankruptcy for Arizona on
Q: So my case was closed and now reopened I gave them 2018 tax return now its reopened will I have to give the 2019 also
Diane L. Drain
Diane L. Drain
answered on Jan 6, 2020

Probably not if you filed your bankruptcy in 2018. But, it is best to talk to your bankruptcy attorney in order to make sure your interests are protected.

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3 Answers | Asked in Bankruptcy for Arizona on
Q: My dad is a senior citizen who does not have any real assets and lives on his social security.

He has accumulated significant debt via credit cards and other loans via One Main Loan and Lending Club. He had a stroke this summer and has been off work and fell behind. This is how I became aware. He drowning trying to make payments. I just watched a webinar thru the National Senior Citizens... Read more »

Diane L. Drain
Diane L. Drain
answered on Dec 27, 2019

Thank you very much for contacting my office. I realize this is a challenging time for you and that you have lots of questions. It is okay to be anxious and overwhelmed; the trick is not to fight it. Instead, you are on the right track by educating yourself about options to help deal with your... Read more »

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1 Answer | Asked in Bankruptcy for Arizona on
Q: Inheritance during chapter 13

I am 3 years into chapter 13 with 2 years left. My base plan is $22,000 which I’ve paid $12,000 $10,000 left. This is for secured creditors. Question is if I was to receive an inheritance for $50,000 for example, would trustee take $10,000 only? I have many unsecured creditors so would they take... Read more »

Justin M. Gillman
PREMIUM
Justin M. Gillman
answered on Dec 20, 2019

This is an extremely complicated question and one that should be reviewed as soon as possible with an experienced attorney who practices in the jurisdiction in which your case was filed. There is no generic answer to the question but the more promptly you review this with an attorney, the better... Read more »

1 Answer | Asked in Bankruptcy for Arizona on
Q: Inheritance question during chapter 13

I am 3 years into Chapter 13 case, 2 years left. My plan base shows as $22,000 so about $10,000 left to go for discharge. This amount is for secured creditors only, unsecured showing as not receiving much of anything. My father is ill so wondering how that works if I was to get inheritance? I have... Read more »

Diane L. Drain
Diane L. Drain
answered on Dec 19, 2019

I assume you do not have an attorney, but if you do you must contact them for guidance. Generally, in chapter 13, any inheritance goes to administrative claims, priority debts, creditors that filed proof of claims, then the debtor.

I hope this is helpful.

Note - if you do not...
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