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.
This act requires all individual debtors who file for bankruptcy on or after October 17th, 2005, to receive credit counseling. The credit counseling must begin within six months prior to filing for bankruptcy relief. The credit counseling course also includes studying financial management after bankruptcy has been formally filed.
Also, under the 2005 Bankruptcy Act, an applicant's income and expenses are studied to decide if they're eligible to file for Chapter 7 bankruptcy or if Chapter 13 bankruptcy must be filed.
The analysis of test will review the average income of an applicant for the 6 months immediately prior to filing, which will then be compared to the median income for Arizona. If the study reveals a level of income below the median, Chapter 7 will likely be an option.
In situations where income exceeds the median income for Arizona, more elements of the means test will be evaluated to determine if Chapter 7 can be filed or if the applicant must file Chapter 13 bankruptcy.
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.
After gathering all the information detailed above, a Hilltop Law Firm attorney will prepare a detailed petition to file with the courts.
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.
Wage garnishments, referred to as wage attachments in some cases, are orders from a court or government agency that require your employer to withhold a specific amount of money per check, sending it instead directly to the creditor.
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
Though states can impose their own laws over wage garnishment limits, Arizona's are exactly the same as Federal wage garnishment laws.
Creditors Are Only Allowed to Take the Lessor of the Following.
- 25% of Non-Exempt Weekly Earnings
- Amount of Non-Exempt Earnings that exceed 30 times the federal minimum wage
The wages that remain after an employer has made the required deductions are referred to as "Disposable Earnings".
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.
A bank levy grants the creditor the right to take money from the bank account of a debtor and apply these funds to the balance of a judgement.
Under Arizona Title 25 - Chapter 5 - Article 1 25-521, the state of Arizona allows bank levies for family support.
In the event of a court ordered judgement, the department may issue a levy and collect the full amount owed. Arizona bank levy laws also allow collection on all property and rights to property not including exemptions under federal and state laws.
Arizona Title 23 - Chapter 4 - Articles 5 23-752 and 23-755 allow for the seizure of personal property as well as wages under Arizona bank levy laws.
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.
In Arizona, having a judgment against debt owed to a creditor can drastically impact your financial health. One adverse effect of receiving adjustment comes by way of wage garnishment, as detailed above. Often, creditors that hold a judgement against an Arizona resident will seek to garnish their bank accounts towards the balance of a debt.
There are a variety of options available to Arizona citizens who currently have a creditor judgement.
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.
Though it may seem simple, settling a judgement can be more complicated than it appears. With a multitude of elements factoring into any judgement, debtors must fully understand their judgement and the conditions granted upon settling.
Before settling any judgement, several facts regarding the case must first be answered, which typically can be best handled by an experienced attorney. Remember, a judgement that has already entered some form of garnishment can be extremely hard to settle. Many creditors may be unwilling to settle the judgement once garnishment of wages has started.
With a lack of options, many debtors find filing bankruptcy to be the best form of relief from a judgement in Arizona when unable to easily pay the full amount owed to the creditor.
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.
You may be able to avoid bankruptcy all together, and even keep your property in the process. Call and talk to Cy T. Hainey and his team at Hilltop Law Firm. They will give you a clearer picture of your options, with the possibility of avoiding bankruptcy, wage garnishment, and foreclosure all together.
Reach out to Hilltop Law Firm for a 100% FREE ZERO OBLIGATION CONSULTATION.