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Questions Answered by Diane L. Drain
2 Answers | Asked in Bankruptcy for Arizona on
Q: What happens if I do not pay my chapter 7 trustee tax refund and they file an adversary proceeding?
Diane L. Drain
Diane L. Drain
answered on Mar 18, 2021

You lose your discharge (the whole reason you are filing for bankruptcy protection), the court could determine that all your current debts cannot be discharged in a future bankruptcy and other sanctions, the trustee will get a judgment against you which they can collect by garnishing wages or bank... View More

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2 Answers | Asked in Bankruptcy and Collections for Arizona on
Q: I am currently retired and collecting a pension from my former employer. Can a creditor garnish my pension?

This is for Texas not Arizona.

Diane L. Drain
Diane L. Drain
answered on Mar 12, 2021

You need to talk to a bankruptcy attorney licensed in the state where you live. If you live in Arizona - the answer is "it depends on the facts". Like, what type of pension?

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1 Answer | Asked in Foreclosure for Arizona on
Q: does foreclosure proceed if a have not recieved notice but it was fiiled?
Diane L. Drain
Diane L. Drain
answered on Feb 22, 2021

Perhaps, but this is a complicated question without any information (somewhat like sending your doctor an email asking about "that weird growth on your arm"). You obviously know about the foreclosure, or you would not be asking the question. I highly recommend you talk to an experienced... View More

1 Answer | Asked in Bankruptcy for Arizona on
Q: I have a bankruptcy showing on my credit score. We never went through with it. How do I get it removed
Diane L. Drain
Diane L. Drain
answered on Dec 6, 2020

I am very sorry to tell you, but if you filed a bankruptcy - it does not go away just because you don't "go through with it". Perhaps this blog will help you understand: https://dianedrain.com/bankruptcy-stays-on-your-credit-report-even-if-case-dismissed/. Moral - NEVER file a... View More

2 Answers | Asked in Bankruptcy for Arizona on
Q: Filed a chapter 7 bankruptcy that was discharged January 2011. Have been making payments to a mortgage servicing company

Bk coming off credit in January 2021. Do I need to refinance and reaffirm to get the home back in my name?

Diane L. Drain
Diane L. Drain
answered on Nov 7, 2020

The mortgage and home are in your name, no matter if you filed bankruptcy. The bankruptcy discharge removed your legal obligation to pay the mortgage (assuming you listed the debt as you were required to do). If you want to keep the home you must pay all secured debts, which include the HOA.

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2 Answers | Asked in Bankruptcy for Arizona on
Q: Can creditors seize my bank account if my income is from Social Security?

Are there any pro bono attorneys for elderly people who have limited income. What does commingle funds mean?

Diane L. Drain
Diane L. Drain
answered on Sep 10, 2020

No, unless you commingle funds - see 42 U,S,C Section 407(a) and SEC 207. I am happy to provide a free bankruptcy consultation for Arizona residents.

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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... View 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
Diane L. Drain
Diane L. Drain
answered on Apr 13, 2020

Sorry about your attorney - that is why it is very important to research the attorney. Make sure to file reviews so that everyone knows your attorney's license is suspended. You don't want others to make the same mistake.

To answer your question - unfortunately, there is no...
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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?

Diane L. Drain
Diane L. Drain
answered on Apr 8, 2020

The law governing the funds was not passed before your bankruptcy was filed. Therefore, no the trustee has no right to those funds.

I hope this was helpful.

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1 Answer | Asked in Foreclosure for Arizona on
Q: Does Idaho have a hold on evictions
Diane L. Drain
Diane L. Drain
answered on Apr 3, 2020

You are posting this in Arizona. Try reposting so Idaho attorneys can see it.

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.

Diane L. Drain
Diane L. Drain
answered on Mar 30, 2020

You need a good creditor bankruptcy attorney. So much can happen to the HOA without one. Let me know if you want referrals.

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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

Diane L. Drain
Diane L. Drain
answered on Mar 29, 2020

I assume you do not have an attorney, or you would not ask. No one really knows. Most likely it will depend on your trustee and other non-exempt assets. Do not spend the stimulus without getting permission from the trustee.

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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... View 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... View 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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1 Answer | Asked in Consumer Law, Contracts and Foreclosure for Arizona on
Q: is it legal for 2nd mortgage to foreclose, buy the house at auction, not payoff 1st mortgage but pay monthly payment?

8 years after my 2nd mortgage forclosed I found out the frst mortgage loan which was an fha, is still in my name. The loan is active and payments have been made by someone without my knowledge for 8 years. My name is listed on the contact information but the contact adddress and phone is that of... View More

Diane L. Drain
Diane L. Drain
answered on Mar 4, 2020

This happens all the time. The first loan has not been paid off, therefore there is still debt owing - by you. If this is Arizona property, under 2 1/2 acres, then lender can foreclose if the loan is not paid, but they cannot sue you. That is the good news. The bad news is that you still have a... View More

2 Answers | Asked in Bankruptcy for Arizona on
Q: I filed Ch 7 bankruptcy 04/19, my ‘19 tax refund is processing. Can the trustee keep my entire refund or just a portion?
Diane L. Drain
Diane L. Drain
answered on Feb 27, 2020

It depends on your other non-exempt assets. Talk to your bankruptcy attorney, or, if you don't have one, make an appointment to talk to a volunteer attorney at the Bankruptcy Court's Self-Help Center - 602-682-4007.

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1 Answer | Asked in Foreclosure, Real Estate Law and Tax Law for Arizona on
Q: Own a property in Pima county that is going to foreclosure, because One of the owners has a lien on the property

For back due taxes on his business. I want my half of the value of the property before it forecloses.

How do I put a lien on this?

Diane L. Drain
Diane L. Drain
answered on Feb 20, 2020

An owner cannot have a lien on their own property. If the lender was an entity of the owner, then the entity can have a lien. Talk to an experienced litigator, with real estate experience.

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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