Bankruptcy

Within the Bankruptcy System in the United States, the Options Are Thin on the Ground; Bankruptcy Homework Helps Me Help You!

By Joseph McDaniel, Esq.

But this is for those who missed that memo, but who may be browsing for bankruptcy information in Arizona. They would already know, if they'd done their homework, what exempt property in Arizona can be used as exempt property in Bankruptcy Court (unless their facts force them to use either the exemptions in the state that they came from; or the federal exemptions at 11 USC 522, even though Arizona is an opt-out state, and under normal fact patterns, those are not available to someone living in Arizona.

And they would know that the means test is the tool used, post-2005 bankruptcy exemptions, to decide whether a potential debtor will be permitted to file a Chapter 7 Bankruptcy in Arizona, or whether that debtor will be trapped in a Chapter 13 for five loooooooooong, brutal years.

And they would begin to understand how the means test can be managed, you know? Not at all easy, not simple, not fun, but possible.

Note that the bankruptcy cases for consumers filed in Arizona are running around 82 per cent Chapter 7 cases, with the rest being mostly Chapter 13 cases and a tiny handful being Chapter 11s for individuals.

And if they read the homework, they would also know that somebody who loses a very-high paying job is not going to qualify for a Chapter 7 Bankruptcy immediately after the firing. They have to age a little, like fine wine. And that I hope they didn't repay a relative within a year of filing; and that they haven't used their credit cards within 90 days of filing, which gives rise to a strong presumption that there's a non-dischargeability issue in their future.

They're also going to know that, even though there may be relatively few dollars associated with them, the diamond ring and the automobile can constitute a large part of the angst in the filing. And that I prefer it in most cases that a debtor not sell his house, pre-filing, and take advantage of the "homestead as cash" provision in the Arizona Revised Statutes, even though it should be and is as legal as Church on Sunday, because a bankruptcy trustee can resist anything but temptation.

And a potential bankruptcy client who read the homework on my blog would also know about the differences between a Chapter 7, 13, 11, 12, and 9 in Arizona. Now, only some of those are bankruptcy options for individuals, and some can't be used by anything but an individual!

And there are out-of-Bankruptcy-Court options for you, as well as bankruptcy court options for you, and both of them are a pain in the keester. No kidding. There is no such thing as an incredibly easy bankruptcy filing, especially after the 2005 Amendments, but the cases can be managed.

There are a lot of goodies in the homework section of my blog, and in fact, there are so many useful chunks of information there that I think am going to build a separate blog called something like the Arizona Bankruptcy Homework Blog.

Or some such.

And I guess I'll make it streamlined, to make the process of doing the bankruptcy homework easier.

And I'll do that the second I get a Round Tuit!

p.s. as of today, there is no form to fill out on my bankruptcy blog; I'll probably build a one page form for potential debtor clients considering bankruptcy, just to make the decision tree easier for them to understand.

NOTHING HERE CONSTITUTES LEGAL ADVICE RE A CHAPTER 7, CHAPTER 13, CHAPTER 11, OR CHAPTER 12. FIND AN ARIZONA BANKRUPTCY LAWYER WHO IS BOARD CERTIFIED IN BANKRUPTCY LAW, AV RATED, AVVO 10 RATED, ON SUPERLAWYERS, OR JUST VERY EXPERIENCED AND A FORMER CHAIR OF SOME BANKRUPTCY SECTION OR COMMITTEE. NOTHING HERE MAY BE USED AS LEGAL ADVICE IN CONNECTION WITH ANY BANKRUPTCY, WHETHER THAT BANKRUPTCY IS IN PHOENIX, GLENDALE, TEMPE, MESA, SCOTTSDALE, OR ANYWHERE ELSE.

Full post as published by Arizona Bankruptcy Attorney Blog on July 10, 2010 (boomark / email).