Utilize The Laws of Bankruptcy in Arizona to Your Advantage
Arizona lawmakers understand that there are times when everyone struggles with their outstanding debt.
If you are having difficulties making your monthly credit card payments, mortgage payments, or paying an outstanding vehicle note, then filing for bankruptcy may help you with your stress and your finances. Bankruptcy can lead to a discharge of debt, but in many cases, consumers have other options besides bankruptcy that may offer the needed relief to get their finances back on track.
Hilltop Law Firm will help you understand and utilize the laws of bankruptcy in Arizona to your advantage. Mr. Hainey's will go over your debt with you so that you can make an informed decision on whether filing bankruptcy will provide the needed relief in your own financial situation.
The First Steps of Filing Bankruptcy in Arizona
Before filing for bankruptcy in Arizona, potential applicants must itemize:
All current income streams
Large financial transactions dating back 24 months
Monthly recurring living expenses
All secure and unsecured debts
All assets and possessions.
Your Rights Under Arizona Wage Garnishment Laws
Mirroring federal laws, Arizona wage garnishment laws provide identical protections for citizens, limiting the amount that creditors can garnish from their paychecks.
With only non-exempt wages accessible to creditors for garnishment, there are also strict limits in Arizona on how much can be garnished per paycheck.
When Do Creditors Get To Garnish Wages?
Before garnishing your wages, most creditors must obtain a court judgement that indicates you owe them money. Simply falling behind on payments to a creditor does not warrant wage garnishment until the creditor files a lawsuit and gets a judgement in court.
The following types of debt are exempt from following this rule and can garnish wages without a judgement:
Court Ordered Child Support
Student Loan Defaults
Unpaid Income Tax
Termination of Employment Due To Wage Garnishment
Arizona wage garnishment laws dictate that an employer cannot fire their employee because of a child support wage garnishment. Rehires, returning employees or new hires are sometimes required to disclose their child support withholding status, but hiring or firing cannot be based on this information.
Lien Laws in Arizona
Liens are claims on property after a judgement has given a creditor the right to do so. Having a lien placed on your property in Arizona will make it difficult to sell or refinance your house. If the equity in your home exceeds the homestead exemption, creditors may attach a judgement to the non-exempt equity in your property.
Motion To Vacate The Judgment
Arizona Rules of Civil Procedure dictate a process to remove a judgement, granted that there are grounds for doing so. Because most debt driven judgements happen because of default by the debtor, often it becomes unclear if a proper notice of lawsuit had been given. There are situations that happen where a debtor was never properly served regarding the lawsuit in question.
Debtors are expected to explain why they waited to file a motion (excusable neglect) and provide a defense to the lawsuit if able. Other situations that are grounds for setting a judgement aside include fraud and lack of jurisdiction. To determine how likely success will be achieved on such motion, it's recommended that you speak with an experienced Arizona debt attorney regarding the judgement.
At Hilltop Law Firm, our free consultation service can evaluate such a motion.
A Word On Foreclosures In Arizona
Arizona foreclosure law affords citizens several provisions that may assist in preventing the seizure of their home or investment property. Most foreclosures that happen in Arizona take place outside of court (nonjudicial), rather than instances where lenders file a lawsuit to foreclose on a home.