Tucson Bankruptcy Blog Arizona Bankruptcy

What Is Bankruptcy? Bankruptcy is a legal process that allows individuals or businesses to obtain relief from their debts when they are unable to pay them. In the United States, bankruptcy is governed by federal law, specifically the Bankruptcy Code. There are several different types of bankruptcy that individuals and businesses can file, each with […]

Wage garnishment is the most common type of garnishment. In Arizona, the wage garnishment process usually starts when a creditor files a writ of garnishment of earnings, therefore, initiating a civil lawsuit against a debtor, who has defaulted on payments. If the judge rules for the creditor, the Court grants a money judgment in favor of the creditor and against the person owing the money. The judge issues a court order to the creditor. If the debtor does not pay, then the creditor can use the money judgment to file for a wage garnishment. The creditor serves the wage garnishment documentation on the debtor’s employer, and it requires the employer to withhold (garnish) a specified amount from the debtor’s paycheck each pay period. If your employer has been served with this court order, they cannot refuse to garnish your wages without severe repercussions. The court order requires your employer to send the funds to the person or organization that you owe money until the debt is paid off unless other payment arrangements are made with the Court or creditor.

Bankruptcy, a legal process, provides individuals, couples, and businesses with a fresh financial start by temporarily or permanently preventing creditors from collecting on certain types of debts. It helps people who can no longer pay bills. When the legal procedure for bankruptcy is complete, it provides a discharge, a court order, that confirms to creditors that individuals, couples, or businesses, who are granted the discharge, do not have to repay certain types of debts. When the discharge is permanent for the full amount of debt owed a creditor, it disallows that creditor from trying to collect on that debt.

Are you struggling to pay business debts? Are you feeling the weight and stress of what feels like an endless amount of debt crushing you? Is your business failing to produce enough income to cover expenses? Could your business really benefit from being reorganized? If you are a business owner, filing bankruptcy probably is one of the last things you want to consider. Yet, according to the Small Business Administration (SBA) more than 50% of businesses fail within the first ten years. Unfortunately, filing business bankruptcy is something many business owners need to consider. Filing bankruptcy does not mean the death of your business. Actually, filing either Chapter 11 or Chapter 13 bankruptcy allows you to save your business by reorganizing your debt. Filing bankruptcy can bring much needed relief from financial stress and provide a way for you to give your business a fresh, financial start.

An Overview of Wage Garnishment in Arizona Wage garnishment is the most common type of garnishment. In Arizona, the wage garnishment process usually starts when a creditor files a writ of garnishment of earnings, therefore, initiating a civil lawsuit against a debtor, who has defaulted on payments. If the judge rules for the creditor, the […]

You have been paying your bills late. Deciding strategically each month which bills get paid. Then it all catches up with you. Maybe you had to miss extra days of work unexpectedly or lost your job. Whatever the reason, you are no longer able to make the monthly minimums. Then the calls start. First, it is one or two calls a week. Then it is every day, multiple calls each day. You waiver between just putting your phone on silence, afraid to answer the next call, to being scared you will miss an important call regarding a job application, your loved ones, or kids’ school. You wish you could just pay off all your bills and stop the calls. However, unless you win the lottery or get the huge promotion, you know that will not happen soon. Should you change your phone number? Block every call you do not recognize? What can you do to stop the creditors from harassing you? Keep reading for the 5 best ways to get creditors to stop calling you.

There are times during a bankruptcy proceeding where a creditor will decide to challenge the automatic stay. The purpose of challenging the automatic stay is to allow the creditor to move forward with any legal action against you for the debt that you owe them. A preliminary hearing on the request to lift the stay is held within 30 days, followed by a final hearing within 30 days after the preliminary hearing.

For many, bankruptcy is a confusing subject — and a daunting one. As with most issues involving the law, it can be hard to dig through all the legal jargon used. And when you’re feeling stressed about your finances, it can be even harder to understand the process.

The majority of clients we work with in our bankruptcy practice would be considered “consumer” debtors. Credit card debt, home equity loans, car loans, and medical bills often make up the majority of what they owe to creditors. Bankruptcy laws are written to allow consumer debtors to exempt much of the property they have acquired. The ability to retain property is often a major factor in deciding to file bankruptcy. How much property is exempt under the bankruptcy law is also one of the determining factors in deciding whether to file chapter 7 or chapter 13 bankruptcy.

Because there is additional proof needed to show undue burden, the majority of those individuals who file bankruptcy do not file the additional adversary proceeding necessary to receive a discharge. This accounts for very low number of student loan discharges given to debtors by bankruptcy courts each year.