Consumer and small business bankruptcy issues. Deals with before, during and after bankruptcy.

Debt Makes You Stupid

Ever wonder why you make really stupid decisions, especially when you are overwhelmed, worried or distracted? Perhaps you are focused on one task, like dealing with a difficult child or employee, and you completely miss a really important appointment or buy something you did not want.

Why Did the Creditor Take My Tax Refund – Arizona Law

(WARNING: The following is Arizona specific) Most people do not understand that if a creditor sues and obtains a judgment they can take your tax refunds and money in a bank account, to name just a few items.   I know this does not sound fair – especially when the creditor is taking your child care […]

“The Dog Ate My Computer” Argument by Chapter 13 Debtor

In re Hindra v. Dockery, US Trustee & Deutsche Bank, BAP No. CC-18-1132-KuTaF (9th Circuit, Jan 29, 2019) In 2016  Etta Hindra filed a chapter 13 bankruptcy and everything went downhill from there.  She did not file the proper documents, meet deadlines or pay the amounts necessary in order to cure the arrears owed to her […]

Do I Have to Pay Taxes if I File Bankruptcy?

What is forgiveness of debt income? When you owe money and do not pay the full amount of the debt the lender is required to file a 1099 form with the IRS showing that you had phantom income in the amount the creditor forgave.  This is referred to as ‘forgiveness of debt’.

FILING BANKRUPTCY WHILE IN A DIVORCE CAN BE A TRAP

Even experienced attorneys make mistakes when it comes to the interplay of bankruptcy and divorce Whenever a divorce and bankruptcy come into play it is very complicated to determine which should be filed or completed before starting the other legal process.  Even attorneys make mistakes.  In the In re Kiley case the debtor’s failure to […]

Document Preparers or Paralegals Ripping Off Consumers

November 2018: The Arizona Supreme Court established a committee to review the current process authorizing documents preparers to do certain work normally done by attorneys.  Administrative Order 2018-111 The following is part of a discussion by fellow attorneys who describe some very expensive mistakes created by document preparers or paralegals (the Arizona Supreme Court does […]

Discharge vs Automatic Stay and Credit Reporting

The Automatic Stay v. the Bankruptcy Discharge The Fair Credit Reporting Act “FCRA” and the Bankruptcy Code deal with debt differently and this difference can become confusing for everyone, including experienced bankruptcy attorneys.  For instance, the legal status of a debt changes as a bankruptcy moves to conclusion. 

Dramatic Increase in Elderly Filing Bankruptcy

The number of elderly filing for bankruptcy is three times what it was in 1991. As a study, from the Consumer Bankruptcy Project, explains, elderly people whose finances are precarious have few places to turn. “When the costs of aging are off-loaded onto a population that simply does not have access to adequate resources, something has […]

The Perils of Bankruptcy Filing by an Undocumented Person

By Richard J. Parker: Shareholder in Parker, Butte, & Lane, P.C. (reprinted with permission of the author, December, 2017) Immigration status is a complex legal issue for anyone not born in the USA. While some people born overseas are still U.S. citizens at birth, there are some hoops to jump through that do not exist […]

Prison Sentence For Filing Several Bankruptcies (to Stop a Foreclosure)

Many people do not understand the consequences of filing multiple bankruptcies.  It is very important to know that every bankruptcy filed (even if the process is not completed) will stay on the credit for ten years. Filing bankruptcy will stay on your public record forever. Also, once the bankruptcy is filed you cannot remove it from […]