Lawyers, Answer Questions  & Get Points Log In
Arizona Bankruptcy Questions & Answers
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...
Read more »

View More Answers

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 »

View More Answers

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 »

View More Answers

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 don't... 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

View More Answers

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.

View More Answers

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.

View More Answers

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 »

View More Answers

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
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...
Read more »

2 Answers | Asked in Bankruptcy for Arizona on
Q: We were released from chapt 7 in April but had a car accident in March can this be incl

Filed for chapter 7 in Dec 2018, was released pending taxes, receipt, filings from creditors, etc by trustee in april 2019. My wife had a car accident in March of 2019, and we are now being sued. Can this be included in the bankruptcy since we had not been release as of that date?

Diane L. Drain
Diane L. Drain answered on Dec 16, 2019

No - when a bankruptcy is filed it includes the debts you owe on the day of filing, not future debts. You may qualify for a chapter 13, but you will not be able to get a discharge, so it is very important you talk to an experienced chapter 13 attorney to determine your rights.

I hope this...
Read more »

View More Answers

2 Answers | Asked in Bankruptcy for Arizona on
Q: I own a truck that’s paid off and has a value of $1,200 and I also have a loan on a Car that has negative equity.

I’m filing chapter 7 with no assets other than my truck. Will they let me reaffirm my Car Loan with negative equity, and keep my truck? Or will I have to give up my truck in order to keep my Car loan?

Timothy Denison
Timothy Denison answered on Nov 26, 2019

You can use your exemptions to protect and keep the truck while reaffirming on the car debt (if you think that is wise). You can keep both.

View More Answers

1 Answer | Asked in Bankruptcy for Arizona on
Q: What are the requirements for filing bankruptcy?
Diane L. Drain
Diane L. Drain answered on Oct 31, 2019

You must fill out more than 60 pages of information about what you owe, own, have done in the past, earn today, earned over the last 6 months, earn the last 60 days, earn the last 3 years, plus much, much more. If you want a free consultation then follow these directions:

I know this is a...
Read more »

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 »

View More Answers

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 »

View More Answers

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.

View More Answers

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.

View More Answers

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.

View More Answers

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.

View More Answers

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.