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Arizona Bankruptcy Questions & Answers
1 Answer | Asked in Bankruptcy, Divorce and Family Law for Arizona on
Q: During a divorce in az Are premarital assets considered community assets after a joint bankruptcy?

Married 12/26/17

Bankruptcy filed 12/03/18

Bankruptcy complete 3/19/19

Diane L. Drain
Diane L. Drain answered on Sep 21, 2019

You should talk to your bankruptcy attorney because the answer depends on certain facts.

2 Answers | Asked in Bankruptcy for Arizona on
Q: My parents did a reverse mortgage on their home in my Dad's name alone. He just passed away and my Mom is $100k in

credit card debt. She will loose her home to the company they signed the reverse mortgage with. She will recieve $300k from a life insurance policy. Is there anyway for her to file bankruptcy to get rid of the unsecured debt and protect the life insurance money so she can survive financially?

Diane L. Drain
Diane L. Drain answered on Sep 21, 2019

It depends on the type of life insurance. Please understand that bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. I am attaching a link to some free videos that explain how bankruptcy works:... Read more »

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2 Answers | Asked in Bankruptcy for Arizona on
Q: (BK 7) Parent helped pay for back mortgage pymnts (3) directly to mortgage company is that an issue.

We meet the means test. Just curious if thats an issue. Payment since then have been current through us.

Diane L. Drain
Diane L. Drain answered on Jul 17, 2019

Expenses paid by others is "income" - but there are four places that income is addressed in a bankruptcy. Bankruptcy is a very complicated process (somewhat like a Rubik's cube - one answer changes others). Please take time to educate yourself about bankruptcy before jumping into the unknown. As... Read more »

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2 Answers | Asked in Bankruptcy for Arizona on
Q: Is a brokrage account (e-trade) of $295.00 an exempt asset? I have no current job (were living off my partners income).

Asking if it exempt when filling BK7

Timothy Denison
Timothy Denison answered on Jul 17, 2019

You can exempt it with your wildcard exemption.

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2 Answers | Asked in Bankruptcy for Arizona on
Q: filed chapter 7 8 mo ago didn''t qualify. filing again now and do qualify. what problems will i face

i walked away and the case was dismissed the first time. just after the dismissal i lost my job. after a month and a half, got a new job for much less money. I am filing again with the same lawyer (made payments until 100% paid), two hours before our signing meeting, her assistant called to say... Read more »

Bruce Alexander Minnick
Bruce Alexander Minnick answered on May 21, 2019

No, you have a choice: Either stay with the one who brought you to the dance floor or go try to find another lawyer--who may not be as helpful as the first one.

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2 Answers | Asked in Tax Law and Bankruptcy for Arizona on
Q: Why do I need to endorse my entire tax refund to my trustee if she says she would only take a portion of it.

Filed Chapter 7 on 3/20/18. It was finalized (discharged) July 2018. My trustee stated that I needed to give her my entire refund. Once she receives if than she would take portion of it from January to March and refund me back the rest of the amount. When I asked how much she would be taking she... Read more »

Timothy Denison
Timothy Denison answered on Mar 22, 2019

Yes. You give her the refund, she withholds the proper portion, then sends you the balance and closes the estate. They don’t just tell you how much and hope that you pay them.

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3 Answers | Asked in Bankruptcy for Arizona on
Q: Can I get a used car a month before filing bankruptcy?

I am filing for bankruptcy the middle of March chapter 7 in Arizona. I am surrendering my current vehicle. My husband is filing also with me and he has a vehicle he is affirming. If I get a used car from a dealership right now, am I okay to do so?

Timothy Denison
Timothy Denison answered on Feb 23, 2019

Yes, so long as you can exempt any equity in the used car bc you will still have to pay for and reaffirm that debt.

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2 Answers | Asked in Bankruptcy for Arizona on
Q: I filed a Ch7 in May 2018 and was granted a discharge. My case is still open because the trustee wanted to wait until I

filed my 2018 tax return saying "you're low income and you have kids, so I know you'll get a big return." Is it left to the trustee's discretion whether he can take a portion of my return, or does a judge decide that? Would low income circumstances be relevant in whether I can keep my return or... Read more »

Diane L. Drain
Diane L. Drain answered on Feb 20, 2019

Unfortunately the trustee has an obligation to collect all non-exempt funds. The current Arizona law does not protect earned income credit or child care credit.

Most Arizona consumer bankruptcy attorneys give free consultations and this issue is discussed every time. This is why I...
Read more »

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3 Answers | Asked in Bankruptcy for Arizona on
Q: How does bankruptcy affect tax refunds?

I filed 2018 tax return and is expected February 27th, 2019. I’m not filing bankruptcy till Mid March. I was told that I need to spend all my refund on bills and nothing personal (vacation, furniture, clothes, etc.) Am I correct with this? Or am I still able to use my refund for other things than... Read more »

Timothy Denison
Timothy Denison answered on Feb 9, 2019

You should consult your bankruptcy lawyer regarding how to handle the refunds but if you do spend them, you probably should use them to pay your ongoing monthly bills rather than on items that look like entertainment or waste.

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1 Answer | Asked in Bankruptcy, Civil Litigation, Civil Rights and Education Law for Arizona on
Q: I have no collection accounts on any of my credit reports but I'm considering filing for bankruptcy, is it right for me?

In just one year of attending I have a $33,249.70 Student Account balance past due at Arizona State University. This is the amount owed to ASU after all Financial Aid payments ($23,000 of student loans) were applied and is growing with a $100 per month late fee. I am going to SCC for this spring... Read more »

Timothy Denison
Timothy Denison answered on Jan 25, 2019

You need to consult a local bankruptcy attorney. Many student accounts are federally insured and your debt may be non-dischargeable as most student loans are. You need a lawyer to delve into this deeper and determine whether your debt is dischargeable!

3 Answers | Asked in Bankruptcy for Arizona on
Q: I filed a Chapter 7 in May of 2018, after my 2017 return was spent on reasonable things. Can the trustee ask for tax

returns that I file for in 2019? What would happen if I didn't pay them? I am considered a low-income family.

Timothy Denison
Timothy Denison answered on Jan 8, 2019

You may have to provide your 2018 returns but it’s unlikely that you will have to turn over your tax refund.

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1 Answer | Asked in Bankruptcy, Consumer Law and Collections for Arizona on
Q: I have been sued by Cavalry Portfolio in Arizona but not yet been served. How should I proceed?

I have found out about this lawsuit against myself only through receiving a letter from a local lawyer alerting me to this and offering a free consultation. Attached was a court code that let me validate this through an AZ court government lookup.

The plaintiff has not yet had any filings... Read more »

Timothy Denison
Timothy Denison answered on Jan 7, 2019

You should consult an attorney regarding this debt. Nothing can happen unless you are served so time is on your side. Your attorney can then determine potential defenses or potential offensive maneuvers to try.

2 Answers | Asked in Bankruptcy for Arizona on
Q: How long will a bankruptcy affect my credit score? Indefinitely?
Stuart Nachbar
Stuart Nachbar answered on Dec 7, 2018

A chapter 7 remains on credit report for 10 years from date of filing. Chapter 13 is on it for 7 years from date of filing

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3 Answers | Asked in Bankruptcy for Arizona on
Q: How often can you file for bankruptcy?
Stuart Nachbar
Stuart Nachbar answered on Nov 16, 2018

Depending on the type of Bankruptcy filed, it could be 5 years or 8 years

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3 Answers | Asked in Bankruptcy for Arizona on
Q: I'm confused about bankruptcy - if I declare do my debts go away, or will things just go into a new payment plan?
David Earl Phillips
David Earl Phillips answered on Oct 26, 2018

Depends on the chapter you file. Chapter 7 discharges most debts while chapter 13 is a repayment plan. See a bankruptcy lawyer near you and they can advise what would be best for you. Good luck!

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2 Answers | Asked in Bankruptcy for Arizona on
Q: Are the frequent flyer miles I earned through a credit card protected if I file bankruptcy?
Diane L. Drain
Diane L. Drain answered on Oct 22, 2018

Frequent flyer miles are not on the Arizona exemption list, but depending on circumstances, you may be able to use other exemptions called a 'wild card'. This is the first of hundreds of questions you should be asking so it is best to talk to an experienced bankruptcy attorney in order to determine... Read more »

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2 Answers | Asked in Bankruptcy for Arizona on
Q: Mortgage is in Husband and his Parents names. We are both filing Chp 7 - What happens with house? Can he reaffirm?

We do not want to affect his parents and we do not want to lose the house. The equity is less than $150,000. Is there a way to file Chp 7 and still keep the house? Can my husband reaffirm? We cannot allow his parents to be affected at all.

Answer to Question from Lawyer:

The... Read more »

Timothy Denison
Timothy Denison answered on Oct 1, 2018

Whose name is the DEED in?

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1 Answer | Asked in Bankruptcy for Arizona on
Q: If I have a title loan and file bankruptcy, how long before they can try and take my car?

My payment is due this friday, but if I don't pay it because I'm filing bankruptcy next week, can they take my car right away?

Timothy Denison
Timothy Denison answered on Sep 19, 2018

It all depends on the terms of your contract, but once you file bankruptcy, the stay will prevent a repo for several weeks.

2 Answers | Asked in Bankruptcy for Arizona on
Q: I voluntarily cancelled my chapter 7. can i go back to using/paying my creditors

I did not qualify for chapter 7 and choose not to file chapter 13. I have an excellent pay record with my creditors and want to continue that. Will they unrestrict my cards and allow me to pay as usual?

Timothy Denison
Timothy Denison answered on Sep 4, 2018

Not until they receive notice of the dismissal. You may want to advise them what you’re doing.

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3 Answers | Asked in Bankruptcy for Arizona on
Q: I live in Arizona and I own my home outright and I'm going to file bankruptcy will I lose my home
Cristina M. Lipan
Cristina M. Lipan answered on Aug 23, 2018

Most likely it will be considered a non-exempt asset which the trustee could sell to pay off your creditors. You should speak to a local attorney to review your exact situation, but most likely you're better off getting a home equity line mortgage to pay off your debts.

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