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Arizona Bankruptcy Questions & Answers
1 Answer | Asked in Bankruptcy for Arizona on
Q: Are student loan disbursements exempt in chapter 7 in Arizona? Will the trustee take it?

It’s not in a bank account, but it is in a prepaid account and is only used for education expenses.

Timothy Denison
Timothy Denison answered on Jun 16, 2021

Should be exempt as post petition funds if you’ve already filed.

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?
Timothy Denison
Timothy Denison answered on Jun 9, 2021

Yes. You must also include the subsidized portion.

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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... Read more »

Timothy Denison
Timothy Denison answered on Apr 20, 2021

Report to the FBI.

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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... Read more »

Timothy Denison
Timothy Denison answered on Apr 10, 2021

You have to object to the levy and provide proof the source (unemployment) as well as the transfer. If you can prove both, you get your money back.

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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?

Timothy Denison
Timothy Denison answered on Apr 9, 2021

Consult your bankruptcy attorney or hire one to evaluate your situation.

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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... Read 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.

Timothy Denison
Timothy Denison answered on Mar 12, 2021

Yes.

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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... Read 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?

Timothy Denison
Timothy Denison answered on Nov 5, 2020

Yes, if possible.

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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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5 Answers | Asked in Bankruptcy for Arizona on
Q: Do attorney fees need to be paid in full before they file for bankruptcy in order to stop garnishments?

I am currently with a bankruptcy legal team and fees will not be completed till November. I have been summoned to pay garnishments. I spoke with attorney and they stayed fee needs to be paid in full in order to file Chapter 13 until then can not give cease / desist on my garnished paycheck. Just... Read more »

Stuart Nachbar
Stuart Nachbar answered on Sep 2, 2020

Some firms when dealing with a chapter 13 only, will allow fees through Chapter 13 Plan. This does not apply to Chapter 7. Ask them if you can put fees in Chapter 13 plan and if not, why.

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1 Answer | Asked in Bankruptcy, Traffic Tickets and Car Accidents for Arizona on
Q: My drivers license is suspended in wa state due to an accident i am unable to pay the financial responsability.

I have moved to arizonia and need to get my drivers license however i am suspended in wa state because i am unable to pay the collections agency the 1000.00 a month i am on ssi i had prior arranements with the insurance company to pay 30.00 a month they told me it was 15,000 now they say its over... Read more »

Timothy Denison
Timothy Denison answered on Aug 28, 2020

File bankruptcy, get a discharge, and then you can get your license back.

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
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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