Talk about the gift that keeps on giving the whole year through! I am up visiting family in Utah for the Thanksgiving holiday and noticed this sign on a local credit union. It got me to thinking about trends I notice when I review the debts of my bankruptcy clients. Rarely have my bankruptcy clients experienced a major financial disaster that has lead them to bankruptcy. Sure there are failed businesses, major illness, and other big problems that lead to them incurring a large amount of debt over a short […]
Starting on November 15, 2013 there will be updated means test numbers here in Arizona for chapter 7 bankruptcy filers. What does this mean? Let me back up and start with what the “means test” is. Back in 2005 Congress, in its infinite wisdom, decided that they wanted more people to file chapter 13 bankruptcy rather than chapter 7 bankruptcy. The way they hoped to accomplish this was limiting chapter 7 bankruptcy to those at or below a certain income level. Household size is also taken into account when determining […]
You’re considering bankruptcy likely because of the benefits you perceive bankruptcy providing to you and your family. You may also be avoiding or delaying your bankruptcy for the perceived negative impact it is going to have on your life. Good and bad – there will be consequences for filing bankruptcy. Here are 3 ways your life will change after you file your bankruptcy case: #1 – You Will be Able to Sleep Again Most of my bankruptcy clients delay filing for bankruptcy for years – even though they need it […]
Several years ago I was driving my family from Arizona to Utah to be with family for the holidays. This is about an eleven (11) hour drive (and with six kids it is awesome!). While stopped for gas I found a copy of Dave Ramsey’s Total Money Makeover and bought it and my wife read it aloud for the next 8 hours of the trip. When Dave Ramsey started offering Debtor Education courses that complied with the requirements of the Bankruptcy Code I jumped at the opportunity to provide them […]
Just yesterday the Arizona Bankruptcy court released a video presented by retired bankruptcy Judge Charles Case. Judge Case talks briefly about the implications of filing bankruptcy without an attorney. He states that here in Arizona 25% of bankruptcy cases filed by people without a bankruptcy lawyer are dismissed. A dismissed case means that not only did you not get the benefit of having your debts eliminated, but a bankruptcy will still show up on your credit report. The video is only a couple minutes long. Worth checking out the perspective […]
No one wants to file for bankruptcy. And despite what some may think, bankruptcy is almost always a last resort for people. Truth be known most people that file bankruptcy should have filed years before they actually did – often to their detriment. People want to pay their bills, but sometimes, they just can’t. Recently I met with a couple that needed to file for bankruptcy. They had over $100,000 in unsecured debt from a failed business. They came to me seeking information on alternatives to bankruptcy. I was happy […]
Getting sick can be very expensive. Many of the bankruptcy cases I file here in Arizona have a large amount of medical bills. And things don’t look to be getting any better. I just renewed my health insurance for my family and not only did my monthly premium go up but by deductible is still sky high. Most of us are one serious illness or accident away from an avalanche of medical debt. The good news is if you have a safety net. Generally all medical debts are unsecured debts […]
Wage garnishment is never a good thing. But garnishments seem to always hit at the worst possible time. Your thoughts race – “how am I going to pay my bills? How am I going to buy groceries?” In Arizona creditors can garnish a full 25% of each paycheck. If you are living payday to payday any amount would be tough but a full 25% of your check can be down right devastating. The good news is you can stop your wage garnishment very quickly. The bad news is it will […]
Friday the 13th, 2013 is a good day in bankruptcy for people in Arizona. This is the day that the new and improved exemption laws go into effect. Why should you care? If you are needing to file bankruptcy and live in the state of Arizona this means you will be able to keep more of your stuff while going through the bankruptcy process. Here are a handful of the updated exemptions: Exempt Property Old Amount Protected New Amount Protected Household Goods $4,000 $6,000 Musical Instruments $250 […]
Most people I meet with to discuss bankruptcy want to file a chapter 7 bankruptcy. They may not know exactly what a chapter 7 is, but they want their debt to go away and go away and quickly as possible. Chapter 7 bankruptcy is pretty good at doing this. However, before take the plunge and file a chapter 7 case there are a couple of hurdles you must get over. Pass the Means Test No one said there would be tests! But there is. Back in 2005 Congress revamped the […]
