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Questions Answered by Diane L. Drain
3 Answers | Asked in Bankruptcy, Divorce and Family Law for Arizona on
Q: Is 401K money protected in a chapter 7 bankruptcy from creditors. I am owed 401K money from my ex, and haven't received

I was told to contact bankruptcy lawyer. It was ordered in separation agreement and divorce, but he has not done the QDRO for me to receive my portion. Can I begin QDRO while the bankruptcy is in process? Will I lose the money? Thank you.

Diane L. Drain
Diane L. Drain
answered on Dec 29, 2023

When a bankruptcy is filed, it should be planned ahead. The goal is to make the debtor and their transactions as boring as possible. You can do this with an experienced bankruptcy attorney who cares about their clients.

As to your questions, first you have to determine which exemptions you...
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2 Answers | Asked in Bankruptcy for Arizona on
Q: Would we be able to file for an Arizona homestead exemption in a bankruptcy filing if we have relocated to C CO in Aug

I relocated to Colorado at the middle of August, with my husband spending time in both CO and in Arizona since July. We did so (renting a house in CO) so that we could sell our Arizona home and use the equity to pay off all of our unsecured debt. Since moving we have lost two contracts on the... View More

Diane L. Drain
Diane L. Drain
answered on Nov 5, 2023

I wish your question had a simple 'yes' or 'no' answer, but the answer depends on timing. There are specific time periods that apply to the filing of any bankruptcy and which exemptions can be used. Your unique situation makes it extremely important that you talk to an... View More

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2 Answers | Asked in Bankruptcy for Arizona on
Q: I am filing chapter 7, pro se, no assets case, but wish to keep my car which I owe $4500 with a blue book value of only

…$2800. I am current on my $150 monthly car payments and can easily afford to continue it with my monthly budget. I don’t mind being upside down on it because it’s super reliable & I’ve put a lot of parts/labor into it. Please inform me of the PROPER procedure to request at the... View More

Diane L. Drain
Diane L. Drain
answered on Aug 13, 2023

The following assumes you are filing in Arizona. A denial of the reaffirmation is NOT bad. It means you can keep the vehicle so long as you are current on payments at the time of the reaffirmation hearing, and that you stay current. Also, the vehicle needs to be insured. The judge denies the... View More

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1 Answer | Asked in Foreclosure for Arizona on
Q: WHAT IS ACTION AND OBTAIN A COURT ORDER PURSUANT TO RULE 65 ? WHAT FORMS?

I RECEIVED A LETTER OF NOTICE OF TRUSTEE'S SALE AND HOUSE HAS ACTION DATE OF AUG 2 I NEED TO STOP THE ACTION FROM HAPPENING HOW DO I DO SO ? I

THE LETTER SAYS I CAN FILE AN ACTION AND OBTAIN A COURT ORDER PRUSUANT TO RULE 65 BTU ASKED TO COURT CLEARK AND SHE COULDNT TELL ME WHAT FORMS... View More

Diane L. Drain
Diane L. Drain
answered on Aug 3, 2023

This process is an attempt to put the foreclosure on hold. Normally this is not successful unless you can prove the lender or trustee did not follow the law. The better course is to contact the trustee and request a reinstatement (which would bring the loan current, plus costs). The next option... View More

2 Answers | Asked in Bankruptcy for Arizona on
Q: Can I convert my chapter 13 bankruptcy to a chapter 7 bankruptcy? I live in Arizona.

Last year (in 2022), I filed a chapter 13 bankruptcy. At the time I filed, I did not qualify for a chapter 7 bankruptcy because the equity in my car was too high.

After I filed my chapter 13 bankruptcy, in November of 2022, the majority of voters voted yes on Arizona proposition 209 which... View More

Diane L. Drain
Diane L. Drain
answered on May 1, 2023

Mr. Denison's answer is not correct for Arizona, but it might be for his state. This is a much more complicated question than you realize. Prop 209 is being challenged. Plus Prop 209 (assuming it stands as is), will only apply to those bankruptcies filed after December 5, 2022. Depending on... View More

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2 Answers | Asked in Bankruptcy for Arizona on
Q: I filed jointly for a CH 13 Bankruptcy in 2018. My spouse died in 2020 and I was still paying off his auto within the

plan. I asked to surrender the car and the creditor was informed. Creditor has not taken the car. Can I get the title from the creditor with lien release?

Diane L. Drain
Diane L. Drain
answered on Mar 27, 2023

Great question, but it would be necessary to gather a lot more information in order to help you determine your rights. First - contact your attorney. They should know why you filed the bankruptcy and what you want to accomplish. If you did not use an attorney (good job getting this far because... View More

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3 Answers | Asked in Bankruptcy, Business Formation, Business Law and Contracts for Arizona on
Q: Two small business entanglement debt and liability question.

My employer (E) has two small businesses (A and B) both 100% owned by E. Business A owes business B a significant amount of money for services accumulated throughout the years. However, E wants to protect the assets of A from any happenings relating to B. If B goes bankrupt will the creditors of B... View More

Diane L. Drain
Diane L. Drain
answered on Jan 16, 2023

Your "employer" needs to talk with an experienced bankruptcy attorney in order to determine their best course of action. This is not a decision that should be made lightly. Do not rely on a "mass-production" law firm (one that pays for advertising on the Internet or TV).... View More

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1 Answer | Asked in Bankruptcy, Collections and Municipal Law for Arizona on
Q: Local court has sued my sister-in-law for credit card debt that I have incurred. They think she is spouse. Options?

-Received two certified letters, one addressed to me, one to sister-in-law.

-Certified letter indicating summary judgement refers to her as spouse, which she is not.

-The debt I have incurred is my own, I am disabled.

-I cannot pay at this time, how can I exonerate my poor sister-in-law.

Diane L. Drain
Diane L. Drain
answered on Sep 30, 2023

Your sister-in-law needs to file an answer stating that she is not your wife, nor is she liable to for the debt (unless she is).

1 Answer | Asked in Foreclosure for Arizona on
Q: Can a trustees sale be processed if a quit claim has been recorded months before breach of contract was filed.
Diane L. Drain
Diane L. Drain
answered on Jun 14, 2023

Under Arizona law - a trustee's sale can be processed by any lender for any material default under the deed of trust. It does not matter who owns the property.

I hope this helps.

2 Answers | Asked in Bankruptcy for Arizona on
Q: small business needed to file bankruptcy

I have an SBA loan, payroll, rent and a couple of MCA loans that can be invalidated

Diane L. Drain
Diane L. Drain
answered on Mar 25, 2023

You posted this question using "I have an SMA loan, payroll, rent..." which means that you, as a human has those debts. But the title says "small business needed to file bankruptcy". I am not sure if you need advice regarding bankruptcy for you, or for your company.... View More

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1 Answer | Asked in Foreclosure for Arizona on
Q: Help needed regarding house we have occupied for 3 years, with deceased owner (no heirs) going into foreclosure.

4 years ago, owner passed away (no will/heirs). We made payment to lender until 3/2021 at which time, payment was refused (we now know, due to lender selling loan). Property is now in foreclosure and due to be auctioned 3/15/23. Property is worth $150,000. Loan is $20000.

Diane L. Drain
Diane L. Drain
answered on Jan 22, 2023

I don't see a question here. From your description, you do not own the house, the payments have not been made, and the lender is foreclosing. Which they have a right to.

2 Answers | Asked in Consumer Law, Bankruptcy, Contracts and Collections for Arizona on
Q: Can/will credit card companies get a court order to place a lien on my potential newly purchased car?

I live in Arizona. During Covid I improperly managed my finances and developed a large amount of credit card debt ($30,000ish from about six credit cards). I defaulted on them and was sued by three credit card companies; all three won default judgments 2 years ago. One got a court order to withdraw... View More

Diane L. Drain
Diane L. Drain
answered on Jan 20, 2023

As Attorney Denison suggested you should talk to an experienced attorney in order to determine your exposure and your rights. In Arizona judgments can be renewed repeatedly, also judgments attach to your home, whether you own one now or in the future. Bankruptcy may be a way to clean up your past... View More

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2 Answers | Asked in Bankruptcy and Criminal Law for Arizona on
Q: Asking for assistance with recovering addict problems that have been haunting me for years. I cannot get a job because.

I cannot get a job because of my previous drug and theft records. MVD stops me from registering my car and DES is seeking payback of unemployment. Stuck between rock and hard place. I have been clean for approximately 3 years but does't seem to matter. I really need help with possibly getting... View More

Diane L. Drain
Diane L. Drain
answered on Jan 5, 2023

As bankruptcy lawyer and retired law professor, my goal is to educate people about their options, including bankruptcy. There are many questions you need to ask and things you need to learn before deciding that baakruptcy is an option. Most good consumer attorneys offer a free consultation.

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1 Answer | Asked in Bankruptcy and Identity Theft for Arizona on
Q: Can I file for bankruptcy for debts not mine then sue for those debts?

My ex committed identity theft in my name, he opened multiple credit cards under my name and charged them to the max. Then he opened multiple phone accounts under my name. Then put a no contact restraining order out on me. I have creditors calling me and telling me I'm responsible for the... View More

Diane L. Drain
Diane L. Drain
answered on Jan 2, 2023

I am so sorry to hear about your situation. There are two issues: 1) a criminal act of forging someone's signature. 2) your liability (if any) to the creditors. For the first file a police report for identify theft. Contact the Attorney General's office for instructions on your rights... View More

3 Answers | Asked in Bankruptcy for Arizona on
Q: can a debt collector find out were my checking and savings acct is located in another state from were i was served,

i was served in a suit for a debt collection by a debt collector , the suit is for $6000, can i close a savings acct in another state from were i was served ,

Diane L. Drain
Diane L. Drain
answered on Sep 16, 2021

The creditor has rights - including domesticating a judgment from one state to another. Rather than running and hiding, talk to a good bankruptcy attorney in the state where you live. Find out what your rights and obligations are and how, of if, bankruptcy might help you find a more peaceful... View More

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3 Answers | Asked in Bankruptcy for Arizona on
Q: Can a Trustee re-open a Chapter 7 closed case?

I received a discharge date on 5/8/19 on a Chapter 7 no asset. Pro se. The trustee submitted the final accounting report and Judge signed on 12/17/20. I was notified a settlement check went to the trustee. Does that mean they are going to re-open my case again? Can I hire an attorney to get my... View More

Diane L. Drain
Diane L. Drain
answered on Sep 1, 2021

In Arizona, the settlement is usually not exempt. Therefore, the trustee has a duty to decide if it is sufficient to administrate. The trustee may elect to return the funds to you. You can make an appointment to talk to a volunteer attorney at the Bankruptcy Court's Self-Help Center -... View More

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2 Answers | Asked in Bankruptcy for Arizona on
Q: I live in low income housing. Do I have to count that as income when filing Chapter 7?
Diane L. Drain
Diane L. Drain
answered on Jun 9, 2021

You would calculate "income" to include wages, regular gifts, self-employment, benefits where others are paying your bills (such as cell phone or food). You list expenses as your actual expenses - such as that you actually pay for your housing. Most consumer bankruptcy attorneys offer... View More

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2 Answers | Asked in Bankruptcy, Business Law, Civil Litigation and Libel & Slander for Arizona on
Q: Who do you report bankruptcy fraud/disability fraud to when your ex business assoc. hides assets, guns, cars etc

We lived operated our business and worked at this non profit outreach and the owner trespassed from property to take our belongings and dumped our destroyed items in the neighbors parking lot ending in filing criminal damage to property of him. He also took door of shower room we had to use so him... View More

Diane L. Drain
Diane L. Drain
answered on Apr 20, 2021

Do don't mention how bankruptcy plays into your questions. If you are in or were in bankruptcy - contact your bankruptcy attorney for advice. If you are or were not in bankruptcy - you should move this post to another topic.

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2 Answers | Asked in Bankruptcy for Arizona on
Q: Funds in saving acct was levied was unemployment funds I transferred from checking acct, can I get this money back?

Got a judgement against me, checking wasn’t touched cause I get unemployment. My only source of money is Unemployment. I thought unemployment couldn’t be garnished. Especially if thats my only money source. I was pushed into filing bankruptcy on my own. Can’t afford no lawyer to get necessary... View More

Diane L. Drain
Diane L. Drain
answered on Apr 10, 2021

There is a Self-Help Center at the Arizona Bankruptcy Court - 602-682-4007. You can sign up to talk to an experienced bankruptcy attorney, free for 20 minutes.

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2 Answers | Asked in Bankruptcy for Arizona on
Q: Due to the Covid 19 We were unable to attend a meeting of the creditors to ask any questions in person.

Now my home is being sold to pay off creditors, what should i do?

Diane L. Drain
Diane L. Drain
answered on Apr 18, 2021

As you are learning, bankruptcy is not a simple process of filling out 60 pages of information. There are tens, if not hundreds, of issues that can harm you, depending on your circumstances.

To answer your question - for over a year all creditor meetings have been held by phone or Zoom,...
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