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Arizona Collections Questions & Answers
1 Answer | Asked in Civil Litigation and Collections for Arizona on
Q: I am being sued by a payday loan company for defaulting on a loan. The registration for my vehicle was used to secure

The loan when I first applied. They continued to allow me to refinance the loan and take more cash after I no longer had the vehicle. They never asked for updated vehicle information and I wasn’t able to update the information since it was an automated process. Can this information be used to... View More

Peter H. Westby
Peter H. Westby
answered on Nov 15, 2023

Based upon the information provided it is my opinion that your no longer having the vehicle at the time additional extensions of credit were made will not help you defend this action. If you got the money, you will need to repay it. The creditor's lawyer might use the fact that you no longer... View More

1 Answer | Asked in Bankruptcy and Collections for Arizona on
Q: Arizona: creditor won't repossess or release lien on motorcycle of deceased ch7 filer

The executor/beneficiary lives in NC and does not ride motorcycles. The bike is at a dealer in AZ and they want to get rid of it. The creditor has stated no interest in repossessing but will not release lien. In some states that is a violation of bankruptcy code. There is no money in the estate to... View More

James L. Arrasmith
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answered on Nov 5, 2023

If the creditor refuses to repossess the motorcycle or release the lien, and assuming the debt was discharged in the Chapter 7 bankruptcy, you may need to reopen the bankruptcy case to file a motion to compel the creditor to act. It’s also possible to negotiate with the creditor, explaining that... View More

1 Answer | Asked in Arbitration / Mediation Law, Collections and Construction Law for Arizona on
Q: Hello Chad flooring installed in my home. The contractor installed the floors wrong twice.

I did not pay after the second install because the floors are still uneven, wavy and buckling income areas. I reached out to them again and they said the floors will have to be reinstalled. I was just told my account will go into collections if I don't pay them. I wrote to them twice for a... View More

David H. Relkin
David H. Relkin
answered on Oct 19, 2023

You have posted your question in Arbitration so I assume you have some basis for believing that there is an agreement to arbitrate in the contract. Go to the Chad site and see what it provides regarding disputes. Perhaps it provides for arbitration. They are required to provide you with a copy of... View More

2 Answers | Asked in Bankruptcy and Collections for Arizona on
Q: Arizona: creditor won't repossess vehicle of deceased ch7 filer

A person passed in Aug of 2022. He had completed ch7 but there was a secured loan on a motorcycle. The creditor won't repossess and the estate can't sell because they also won't release the lien. The estate does not have money to pay the loan off. Is what the creditor is doing legal... View More

James L. Arrasmith
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answered on Nov 5, 2023

In Arizona, creditors are not obligated to repossess collateral such as a motorcycle. If they choose not to repossess or release the lien, this is within their rights, although it can be frustrating for the estate handling the deceased’s affairs. The estate has a few options: One is to negotiate... View More

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2 Answers | Asked in Bankruptcy, Banking, Civil Litigation and Collections for Arizona on
Q: Is there anything I can do about a bank that allowed an LLC account to be closed despite a granted Charging Order?

I obtained the interest in a one member owned LLC by Charging Order. The LLC contained tens of thousands of dollars, but the the bank disregarded the Order and allowed the member to close the bank account. The Order specifically stated my interest in the money within the account. The member no... View More

David H. Relkin
David H. Relkin
answered on Apr 23, 2023

A common charging order issued against a Bank holding funds in a bank account of a judgment debtor can render the Bank liable when it allows the account to be depleted by anyone other than the Court or without the consent of the judgment creditor -- in this case, you. I have successfully collected... 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 Collections for Arizona on
Q: I received a letter in the mail from the court that my garnishment was quashed and the garnishee was released.

I no longer work at that place or at all. So they have never garnished anything before. Does it still mean that my judgment is quashed?

Barry W. Kaufman
Barry W. Kaufman
answered on Aug 28, 2023

It means the garnishment is over

2 Answers | Asked in Contracts and Collections for Arizona on
Q: Can I be sued for a company loan?

In June 2017 I was president (in name only) of a company located in Phoenix Arizona. In April 2017 the company took out a $10,000 loan for business purposes, however, in June 2017 the company ceased doing business.

The loan was from a company in California. The loan was issued in April 2017... View More

Joel Gary Selik
Joel Gary Selik
answered on Jul 19, 2023

Being rushed like this is always suspicious and rarely a good idea.

They could lose depending on how documents were signed by you and other factors.

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1 Answer | Asked in Consumer Law, Contracts and Collections for Arizona on
Q: If i inform my credit collectors that every call to my number and message left is a fee of 50$ can i than charge legally
Joel Gary Selik
Joel Gary Selik
answered on Mar 5, 2023

While that is a clever idea, you would not be able to require payment. There are ways in which you can legally deter Creditors from calling, but doing so many encourage them to file a lawsuit. Consult with experiences attorneys.

1 Answer | Asked in Business Law, Civil Litigation and Collections for Arizona on
Q: Can I file a motion for an extension of time with the court to find an attorney to comply with AZ Rule 26?

I filed a complaint in Superior court pro se and the defendant acquired an attorney and answered. The attorney has now reached out to move forward with discovery and other protocol but I have had issues acquiring counsel and need more time. Can I at least file a motion for more time so my case is... View More

Barry W. Kaufman
Barry W. Kaufman
answered on Mar 3, 2023

Can you? Sure. It's a motion to extend time to respond to discovery. Be forewarned: now that you've filed and the defendant has responded, it may be more difficult to find a lawyer to take your case, or may require a hefty retainer upfront. Good luck.

1 Answer | Asked in Real Estate Law, Bankruptcy, Civil Litigation and Collections for Arizona on
Q: When is it a good time to record a lis pendens on a property?

I recently filed a complaint in Superior Court against 4 defendants due to a fraudulent transfer of a property. Is it proper to record a lis pendens just after filing the complaint or is it best to wait until you receive an answer? I ask because I don't want to be civilly liable by clouding... View More

Timothy Denison
Timothy Denison
answered on Jan 23, 2023

File it now.

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

Timothy Denison
Timothy Denison
answered on Jan 19, 2023

Anything you own or in your name is subject to the judgments snd liens granted to those creditors. You probably need a lawyer to help you negotiate these out.

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1 Answer | Asked in Bankruptcy, Civil Litigation and Collections for Arizona on
Q: Can you change a sole proprietor business into an LLC in order to protect your personal assets after a judgment?

I won a judgment against a Defendant and she immediately changed her sole proprietor business into an LLC in order to transferred all of her assets there. This has been recently discovered and now explains why I have not been able to recover judgment. It was thought that once you've been sued,... View More

Timothy Denison
Timothy Denison
answered on Jan 16, 2023

The transfers you described are post judgment snd should be easily set aside as fraudulent transfers. You can ask the court in which you obtained judgment to set them aside.

1 Answer | Asked in Bankruptcy, Civil Litigation and Collections for Arizona on
Q: Can you file a writ of garnishment against a debtors Zelle, Venmo or Cashapp? Is the process different than thru a bank?

The defendant/ debtor has avoided bank garnishments so far but I have been notified that they have a Zelle, Venmo and Cashapp. Can I finally garnished their account via this method or are there any issues involving this?

Timothy Denison
Timothy Denison
answered on Jan 16, 2023

Yes. You can use the same forms as you would for a bank but send the form to their central accounting centers, the addresses of which you should easily find online.

1 Answer | Asked in Bankruptcy, Civil Litigation, Collections and Probate for Arizona on
Q: Is it possible to "Pierce the Vail of an LLC" that has an Invalid LLC address?

I won a judgment against a Defendant that has transferred all of their assets into an LLC they have never used until my lawsuit. The LLC was created in 2019 at a rented space for one year, but never actually used. The Defendant moved out of that location and never found another. The Defendant has... View More

Timothy Denison
Timothy Denison
answered on Jan 11, 2023

Probably not bc of an incorrect address although your description of the chain of events might give rise to setting aside all those asset transfers as fraudulent.

1 Answer | Asked in Civil Litigation, Bankruptcy and Collections for Arizona on
Q: Can you file a writ of garnishment (earning) against a Defendants LLC that is self-employed and sole member?

A Defendant has a judgment against them and immediately closes out personal bank accounts transferring all assets into a newly create LLC bank account. The Defendant is the sole member of her LLC and is self employed. If the LLC is basically her employer, can a writ of garnishment be filed against... View More

Timothy Denison
Timothy Denison
answered on Jan 9, 2023

Yes. Those are fraudulent transfers by the debtor that can be set aside.

1 Answer | Asked in Divorce, Bankruptcy, Civil Litigation and Collections for Arizona on
Q: Couple commits fraudulent transfer of home, then divorces, do you name both to obtain jurisdiction of marital property?

I sued the wife in arbitration for breach of contract and won a six-figure judgment. The husband immediately transferred their home to try and prevent any recovery from the property. It's normal to name both spouses in a lawsuit to obtain jurisdiction over the marital community, however, when... View More

Timothy Denison
Timothy Denison
answered on Jan 3, 2023

You must include both husband and wife in your suit or it will fail.

1 Answer | Asked in Collections and Consumer Law for Arizona on
Q: Can a creditor still collect on an account they closed?

If a creditor sued me and received default judgment then recorded it with the county, but later closed the account do I still have to pay them when selling the house?

Barry W. Kaufman
Barry W. Kaufman
answered on Dec 7, 2022

But later closed the account? You mean like a credit card? Yes, you have to pay the judgment.

1 Answer | Asked in Bankruptcy, Foreclosure, Civil Litigation and Collections for Arizona on
Q: Is there a different type of writ of garnishment required to garnish the account of the defendants sister?

I've received credible information that the defendant is hiding a large amount of money owed to me within her sister's bank account. Is there a different type of writ of garnishment required to garnish the bank account of the defendants sister? How do I get around the defendants name not... View More

Timothy Denison
Timothy Denison
answered on Nov 16, 2022

You cannot garnish the sisters account if you do not have a judgment against her.

1 Answer | Asked in Bankruptcy, Tax Law and Collections for Arizona on
Q: We live in AZ & are beneficiaries of an irrev. trust. I need to access and protect the equity from an FTB lien. How?

My wife and I are beneficiaries of an irrevocable trust. The trust was funded using only real estate. The trustee passed away 3 years ago.

We live in AZ. We have chosen to not transfer title from the trust to our names due to the FTB (CA) having filed a lien. The lien states that any... View More

Timothy Denison
Timothy Denison
answered on Nov 2, 2022

Appoint a successor trustee and let them handle the transactions for you.

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