Do You Know When Glendale Debt Collectors are in Violation of the Law? We’ve all fallen behind on a bill or two in the past and had to answer a call from a debt collector. You may have just forgotten to pay the bill, or you may have had a cash-flow problem that month for one reason or another. However, if you’ve ever lost a job or become seriously ill, you may have gotten far more of those calls than you like because you couldn’t keep up with the bills or had to take out more credit than you could afford to cover other bills. You may have been shocked to hear what some of those debt collectors had to say. In Arizona and throughout the country, you have rights that protect you against some of those behaviors. Whether you have filed for bankruptcy in Glendale to get debt relief or you are still struggling in debt on your own, debt collectors are limited in how they can contact you and what they can say. Here are a few things that debt collectors are not allowed to do by law: Call Too Early or Too Late Everyone has their own ideas about what constitutes “early” or “late,” but the law puts some actual time limits on it. Collectors cannot call you before 8 a.m. and they cannot call you after 9 p.m. If you get calls outside of that time, make a note of the number and time to corroborate with your phone bill. You’ll be asked for that information if you file a complaint. The only exception is if you speak to a bill collector and ask that you be called outside of that time frame. Call You at Work Getting calls from a bill collector at work can be very embarrassing as it can make your financial problems known to people you may not want to know. The law prohibits bill collectors from calling you at work unless you ask them to do so. Again, if you get those calls, make a note of the time and the number. Get the person’s name, as well, if you can. Threaten You Making threats to scare you into paying has been the go-to tactic of many bill collectors in the past. The law now makes specific prohibitions against threats. Bill collectors are never allowed to threaten you with violence or harm, nor can they threaten to have you arrested for not paying your debts. Collectors cannot threaten to garnish your wages or seize your property unless they have a legal right to do so, such as an auto lender who has a right to seize your car for non-payment. In general, they cannot threaten to do anything that they do not have the legal right to do, including taking legal action against you. Make False Claims Bill collectors cannot use a false name or false company name, nor can they falsely claim to work for a credit reporting company. They cannot falsely claim to be an attorney or a law enforcement representative, nor can they falsely claim that you have committed a crime. Collectors cannot send you documents that are designed to look like official court documents, nor can they claim that papers they send you are legal documents if they are not. They cannot misrepresent the amount you owe. Essentially, collectors cannot lie to you in any way. If they do, they are breaking the law and are subject to penalties. Use Profane Language Debt collectors have been known to get quite nasty. In addition to making threats and lying about the consequences you can face for not paying your debts, they can start to get personal and use profane language. The law recognizes this as abusive and prohibits it. Immediately after you get such a call, make notes about what the person said (be specific), the time of the call, the name of the person, and any other relevant details. You will need these specifics if you have to file a complaint. You can put an end to these harassing calls permanently by filing for bankruptcy with a Glendale bankruptcy attorney. My AZ Lawyers can help you understand your options for debt relief. Once you file for bankruptcy, debt collectors are required to stop their efforts. If you continue to get those calls, your Arizona bankruptcy lawyer will step in and handle the collectors on your behalf. Call us today to speak with an experienced bankruptcy lawyer and to understand how bankruptcy can offer you the debt relief you need. Published By: My AZ Lawyers Mesa Location: 1731 West Baseline Rd., Suite #100 Mesa, AZ 85202 Office: (480) 448-9800 Glendale Location: 20325 N 51st Avenue Suite #134, Building 5 Glendale, AZ 85308 Office: (602) 509-0955 Tucson Location: 2 East Congress St., Suite #900-6A Tucson, AZ 85701 Office: (520) 441-1450 Avondale Location: 12725 W. Indian School Rd., Ste E, #101 Avondale, AZ 85392 Office: (623) 499-4222 The post Do You Know When Glendale Debt Collectors are in Violation of the Law? appeared first on My AZ Lawyers.

A Closer Look at Avondale Chapter 7 Bankruptcy A Closer Look at Avondale Chapter 7 Bankruptcy Here’s what you need to know about Chapter 7 Bankruptcy in Arizona! Avondale, Arizona Bankruptcy is a dirty word for some. It has the stigma of being only for people who are irresponsible with their money and go on spending sprees without any thought to how they will pay for them (other than using credit, of course). The other stereotypical view of bankruptcy is that it is for unethical business owners who use it to fix the problems caused by their reckless investing decisions. The reality is much different. The types of clients that the average bankruptcy lawyer sees range from those who have lost their jobs and remained unemployed long past their savings running out to those who became unexpectedly ill or injured and drained everything they had on medical bills. Those who struggle after a divorce often find themselves needing to file for bankruptcy. Bankruptcy laws were designed to help those and others who are struggling financially and need a way to get out from under crushing debt. Bankruptcy is a right and a protection under the law, and filing for bankruptcy does not imply a moral failing. In fact, filing for bankruptcy is a much better alternative to taking out additional loans or credit cards, borrowing against your retirement, or borrowing from friends and family — all of which will only sink you into more debt and cause you more problems. Many of the popular beliefs about bankruptcy arise from a lack of understanding about the laws. It’s time to take a closer look at Chapter 7 bankruptcy in Avondale, AZ. Chapter 7 Bankruptcy vs. Chapter 13 Bankruptcy When most people talk about bankruptcy, they are talking about a Mesa Chapter 7 bankruptcy. A Chapter 7 is a total liquidation of unsecured debts, such as credit card debts, personal loans, and medical bills. These debts are not promised against assets like your home or car. The credit was extended based on the lender’s belief in your ability to pay it back — nothing more. Chapter 7 does not eliminate student loans, tax debts, or child-support obligations, but it does get rid of just about every other unsecured debt that you have. A Mesa Chapter 13 bankruptcy, on the other hand, is more like a structured repayment plan. Instead of making individual debt payments for your home, credit cards and so on, you make a single payment each month that is distributed among your creditors. Under Chapter 13, you are paying a negotiated settlement, which can include a lower overall debt amount or a lower interest rate on the debt. You end up saving money, but you don’t escape the obligation to pay. Handling Assets in Chapter 7 Bankruptcy One of the biggest concerns people have when they are considering filing for bankruptcy is whether they will lose their home. However, most people will be able to keep their home and other assets when they file for Chapter 7 bankruptcy. Arizona allows for certain exemptions with this bankruptcy filing, including up to $150,000 in equity on a home, up to $6,000 in equity for a vehicle, up to $6,000 for personal goods such as computers and jewelry, and up to $2,000 in value for wedding rings. The full value of retirement accounts is exempt from bankruptcy filings. Therefore, in most cases, you will not have to sell your home or your personal belongings to pay for your debts. The exception, of course, is if you own a luxury home or you have several vehicles. You might then have to liquidate these assets to satisfy your debts. Your bankruptcy lawyer can help you understand your options concerning your assets. Some people turn to bankruptcy when they are at risk of losing their home, such as if foreclosure proceedings have begun against them. Unfortunately, Chapter 7 bankruptcy cannot stop these proceedings. Chapter 7 bankruptcy may help you save your home from foreclosure or your vehicle from repossession by freeing up money that you had been paying toward unsecured debts. You can then use this money to catch up on your home or vehicle payments instead. However, Chapter 7 bankruptcy does not provide any provisions for getting you caught up on those payments or for stopping active proceedings against you. In some cases, Chapter 13 bankruptcy can help. Again, you will need to consult with an experienced Arizona bankruptcy lawyer to understand your options. Qualifying for Chapter 7 Bankruptcy Nationwide, bankruptcy laws were changed in 2005 to make it harder for people to file for Chapter 7 bankruptcy. Now, there are strict qualifying criteria for who can file. Specifically, there is a “means test” that looks at your income compared to the state average, as well as your assets and debts. The amounts are always changing, so it is important that you talk to an Avondale bankruptcy lawyer about the current criteria.Many deductions are available that can help you meet the criteria. For example, you can deduct the taxes taken out of your payment, mandatory retirement deductions, health insurance premiums, and mortgage payments from your income. These and many other available deductions can help you meet the criteria. Again, it is critical that you work with an experienced bankruptcy lawyer who can help you understand what you need to do to qualify and what steps you can take to do so. My AZ Lawyers can help you understand your bankruptcy options and whether filing for Chapter 7 is right for you. Our Avondale attorneys understand that filing for bankruptcy is an emotionally charged choice as much as it is a rational one, and they offer compassionate yet thorough representation to make the process a bit easier. After meeting with a bankruptcy lawyer, you will have a much better understanding of your options and will be better able to make the choice that’s right for your family. Contact us today to learn more about the state’s laws and to start reviewing your finances. You may be able to discharge those debts this year and start over financially, finally working toward the goals you set for yourself. Published By: My AZ Lawyers Mesa Location: 1731 West Baseline Rd., Suite #100 Mesa, AZ 85202 Office: (480) 448-9800 Glendale Location: 20325 N 51st Avenue Suite #134, Building 5 Glendale, AZ 85308 Office: (602) 509-0955 Tucson Location: 2 East Congress St., Suite #900-6A Tucson, AZ 85701 Office: (520) 441-1450 Avondale Location: 12725 W. Indian School Rd., Ste E, #101 Avondale, AZ 85392 Office: (623) 499-4222 The post A Closer Look at Avondale Chapter 7 Bankruptcy appeared first on My AZ Lawyers.

  SOURCE CREDIT: Fiona Robertson Graphics An aging analysis is often needed to mount an ordinary course defense in a preference action that a debtor has initiated against your client creditor, who could be a supplier, a lender, a trade creditor, a landlord.   EXAMPLE: Debtor retail toy store buys toy inventory from Defendant Supplier Creditor on Net 30 day terms and has done so for years. Debtor always paid in about 45- 60 days (or 15 to 30 days late– the  “lag time”). The purchase history is evidenced by 1000’s of invoices, purchase orders, and checks.   As the Debtor started its “slide into bankruptcy”, it slowed down payments to this Supplier Creditor and started paying in 75 to 100 days after invoice within the 90 days prior to filing bankruptcy (35-70 day “lag time”).  Debtor paid Supplier $100,000 in those 90 days about 75-100 days after invoice.   Post- bankruptcy, the Debtor or a Trustee sues the Supplier Creditor for a return of the $100,000 alleging that the payments were preferential payments. To argue the ordinary course of business defense provided for creditors in the Bankruptcy Code, the Supplier must show that the timing of the payments in the 90 day period was consistent with Pre-Preference Period transactions, that this was a typical supplier/debtor credit relationship where the Debtor and Supplier over time had fallen into a pattern of regularly paying and accepting payments on a late basis. The Supplier must show that during the Preference Period, the average lag times remained substantially the same. The Creditor had come to expect this and had accepted these payments to be made in the “ordinary course of business.” As a debtor draws closer to the filing of a bankruptcy, it is generally the case that almost all invoices will be paid with less frequency. A creditor must prove more than just that fact. See Hansen Lumber, 270 B.R. 273 (even where representative of debtor acknowledged that as debtor got closer to filing bankruptcy, the invoices were being paid with less frequency and the creditor defendant was treated no differently than any of the debtor’s other suppliers, debtor’s batch payments to supplier were still preferential). Generally speaking, there have been two ways in which Courts have done an “aging analysis” comparing the timing of preferential payments to the course of dealings established by the payment history between the parties: the “ranging method” and the “averaging method”. For the “ranging method,” the first step is determining the range of “lag times” for payments made by the Debtor to the Creditor during the Preference Period, (if possible, also taking into consideration both the number of invoices and the dollar amount of invoices).  The second step is determining whether this Preference Period range of “lag times” falls within, or close to, the range of lag times for payments made by the debtor to the creditor prior to the Preference Period. Calculating a “lag time” is described below. For the “averaging method,” a creditor simply compares the average “lag time” for payments made during the Preference Period with payments made during the Pre-Preference Period.  To calculate the average, one must first count the days after invoice date for each invoice, add up the total number of days and divide by the total number of invoices. Global Distribution, 103 B.R. 949, 953 n.3 (citing In re First Software Corp., 81 B.R. 211, 213 (Bankr. D. Mass.1988). If a debtor is a making payment to the creditor which pays many invoices (a batch basis), there is an issue as to whether the “lag time” is calculated on a “batch” basis or on an “unbatched” basis (invoice by invoice).  Uh. yeah, this analysis can get more complicated. As I have previously written here, I have developed an extensive series of excel spreadsheets to generate an “aging analysis” to defend preference litigation.  I am able to take a client’s 1000s of invoice transactions, input them into excel and do an analysis using both the “ranging” and “averaging” methods on both a “batched” and “unbatched” basis.  The analysis must also account for how the “Ordinary Course” defense interplays with the “New Value” defense (another defense to preference allegations).  More on that later. In true scholarly fashion, I amassed 100’s of cases in various Circuits that scrutinize what is a reasonable “average” or reasonable “range” in determining whether a transfer is ordinary or not. I know this is riveting stuff.  But, this type of litigation can make or break a creditor, thrusting the creditor also into a liquidation itself if forced to disgorge payments a Chapter 11 Debtor has made to it for bona fide goods or services.  Trust me, my clients are fuming after being hit with one of these lawsuits. Feel free to reach out if you have any additional questions about the “aging analysis” in a preference action.  The age of the transaction is only one factor in determining whether a transfer is or is not within  the ordinary course defense, but albeit a weighty one.  This post does not constitute legal advice.  Consult an attorney about your specific case.

Common Glendale Bankruptcy Misconceptions! Bankruptcy Will Solve All of My Financial Problems Common Glendale Bankruptcy Misconceptions!! Learn more about the facts behind bankrupcty. Glendale, Arizona Declaring bankruptcy isn’t easy. In Glendale you’ll be required to show proof of income, to list all of your debt, and to show how much equity you have in secured debts, such as your house. There are many debts that a Peoria bankruptcy won’t eliminate, including secured debts such as your mortgage and vehicle loans, student loans, child support and federal and state tax debt. In addition you will be required to pay court fees and filing fees. A Glendale bankruptcy lawyer can guide you in deciding if bankruptcy is the right choice for you. I Will Lose Everything Not necessarily. When filing bankruptcy most debtors are allowed to keep their home if they can show that they will be able to make the mortgage payments. You will also be allowed to keep your vehicle. The rest of your assets must be turned over to a bankruptcy trustee although some assets may be exempt, such as pensions and retirement accounts. In addition, you may be allowed to keep tools or equipment that are necessary for you to earn a living. Contact your Glendale lawyer for more information. If I File Bankruptcy I Will Never Be Able to Borrow Money Again This isn’t necessarily true. Filing bankruptcy will definitely have a negative effect on your credit rating for a long time to come. It will remain on your credit report for 5 to 7 years. One of the main factors that contribute to your ability to obtain a loan will be the amount of time that has passed since your bankruptcy discharge. Another deciding factor will be your current money management. You can begin rebuilding your credit immediately by paying bills on time and incurring as little debt as possible. You may also be able to convince a business or institution to give you a loan if you make a large down payment. Each time you successfully pay off a loan it will rebuild your credit. Having to File Bankruptcy is the Worst Thing that Can Happen Some people find that the effect is quite the opposite. If you have been afraid to answer the phone due to creditors threatening and harassing you, filing for bankruptcy can bring a great sigh of relief. Filing for bankruptcy is a difficult decision, but once the decision is made, filing for bankruptcy brings immediate relief from those harassing creditors. In addition bankruptcy filing will stop wage garnishment and various other legal proceedings against you. Fact: There is Help Available If you are in financial trouble and things appear hopeless, bankruptcy may be the answer to your problems. Call to schedule a consultation with a bankruptcy lawyer at My AZ Lawyers. A bankruptcy lawyer can advise you on whether filing bankruptcy is necessary, how to save the assets you want, and if it would be better to file a Chapter 7 for discharge of debts or to file a Chapter 13 to reorganize your debts. The sooner you get started the sooner can get relief from creditors, take back control of your finances and begin to rebuild your credit. Published By: My AZ Lawyers Mesa Location: 1731 West Baseline Rd., Suite #100 Mesa, AZ 85202 Office: (480) 448-9800 Glendale Location: 20325 N 51st Avenue Suite #134, Building 5 Glendale, AZ 85308 Office: (602) 509-0955 Tucson Location: 2 East Congress St., Suite #900-6A Tucson, AZ 85701 Office: (520) 441-1450 Avondale Location: 12725 W. Indian School Rd., Ste E, #101 Avondale, AZ 85392 Office: (623) 499-4222 The post Common Glendale Bankruptcy Misconceptions! appeared first on My AZ Lawyers.

50 Cent Wishes He Had Fifty Cents A recent and notable celebrity bankruptcy is that of famous music artist 50 Cent Well-known rapper 50 Cent is making headlines — concerning financial matters well beyond 50 Cents.  On July 10, 2015, 50 Cent was ordered to pay $5 million to Lastonia Leviston. She sued 50 Cent over a sex tape that the rapper distributed / posted online involving Leviston.  On July 13, 2015, 50 Cent filed for Chapter 11 bankruptcy protection. Filed in the U.S. Bankruptcy in Hartford Connecticut, court documents reveal that 50 Cent’s debts are “primarily consumer debts.” A.K.A Curtis Jackson, 50 Cent had reported debts and assets of approximately $10 million to $50 million and lists between 1 and 49 creditors.  The rapper filed for the Chapter 11 protection the same day he was to appear in a NY state court to determine if he owed damages to rapper Rick Ross’s ex-girlfriend, Leviston. Generally, filing for bankruptcy will place an automatic stay and stop all collection activities from creditors.  Although his lawyers did not comment on how he may use his bankruptcy protection to achieve a fresh start, as he tries to organize his financial affairs, 50 Cent supposedly may continue his involvement with his business interests and continue to work as an entertainer. The bankruptcy petition did not reference the lawsuit earlier mentioned by Ms. Leviston. The rapper’s Chapter 11 filing comes after his boxing promotion company SMS Promotions also filed for debt relief under the Chapter 11 Bankruptcy code on May 26, 2015. This move was related to the sex tape lawsuit, which accused him of posting a 13-minute sex tape as part of a “rap war” or “rap beef”between Mr. Ross and himself, according to court documents.   It is unclear to what extent 50 Cent squandered his wealth: he was for a short time the most popular rapper in the world, selling over 20 million copies of his first 2 albums.  He appeared on the gangsta rap music scene, then founded G-Unit Records, and made deals with companies such as Reebok and Vitaminwater.  Published By: My AZ Lawyers Mesa Location: 1731 West Baseline Rd., Suite #100 Mesa, AZ 85202 Office: (480) 448-9800 Glendale Location: 20325 N 51st Avenue Suite #134, Building 5 Glendale, AZ 85308 Office: (602) 509-0955 Tucson Location: 2 East Congress St., Suite #900-6A Tucson, AZ 85701 Office: (520) 441-1450 Avondale Location: 12725 W. Indian School Rd., Ste E, #101 Avondale, AZ 85392 Office: (623) 499-4222 The post 50 Cent Wishes He Had Fifty Cents appeared first on My AZ Lawyers.

Chapter 13 and Vehicle Repossession Is your vehicle safe from repossession when you file chapter 7 bankruptcy? What if you hadn’t completed your Chapter 13 and your car was repossessed? Are you able to get your vehicle back? Chapter 13 and Mesa Vehicle Repossession Is your vehicle safe from repossession when you file chapter 7 bankruptcy? Are you able to get your vehicle back? Mesa, Arizona Most creditors are prohibited immediately from any collect activities against you when you file for Chapter 13 bankruptcy. An Automatic Stay also prevents a car loan lender from repossessing your vehicle. Typically, you will be able to keep your car when you file Chapter 13 bankruptcy protection. Car payments that you are behind on may be made up through the Chapter 13 payment plan to avoid repossession. Also, if you owe more than the car is worth, you may be able to reduce the value of the loan to the current replacement value of the car. The automatic stay, prohibiting creditors from taking collection efforts against you, also prevents your car lender from repossessing your car. Essentially, the automatic stay will protect you in several situations: if the lender has already repossessed your car, or if the has not yet (but would/will) repossess your vehicle. When you file for bankruptcy, no repossession action can be taken. If your repayment plan in the Chapter 13 bankruptcy deals with the back payments on the car loan, the lender may not repossess your vehicle during or after the bankruptcy. You must stay current on your payments through this plan/agreement, however. The payments are designed to cover the depreciation of the car during the time in which the payments are made. Once you file for bankruptcy, you must make your payments until your plan is confirmed. FILING CHAPTER 13 COULD ELIMINATE REPOSSESSION AND ASSIST WITH AN UPSIDE DOWN CAR LOAN If your car has been repossessed, contact our Arizona Bankruptcy Law Firm immediately. Our experienced attorneys can help you get back your vehicle and help you to attain the automatic stay to stop creditors from collection actions. If your car was repossessed before you file for bankruptcy, you may be able to get the car back if the arrangements for payments are provided in the repayment plan per the Chapter 13 bankruptcy (assuming you continue making the monthly payments). Our Mesa Arizona Bankruptcy Law Firm Helps clients in Arizona Seek a resolution to their financial problems. If you are facing creditor harassment, financial crisis, repossession, or other financial challenges and problems caused by the loss of a job, injury, sudden death or injury, or if you are a victim of a failing economy, it is time to take action and protect your rights under the Arizona federal bankruptcy protection. Our Arizona Bankruptcy Law Firm and experienced Arizona Bankruptcy attorneys have been helping clients in Arizona achieve their debt relief goals, end harassing contact by creditors, stop foreclosures, and prevent repossessions. Our attorneys would like to discuss your unique financial situation and use our experience with the Arizona bankruptcy courts to use the powers and legal protection of Chapter 7 and 13 bankruptcies in order to give you the solutions, options, and support you need in order to achieve financial freedom. Bankruptcy is not a punishment. Bankruptcy is a means in order to take that first step to improve your financial issues. It could be your chance for self-improvement and a second chance at financial success. Facing a repossession is an urgent financial problem, and if you are in this situation, time is of the essence. It is important to take action immediately and seek the counsel and support of an attorney experienced in Arizona Bankruptcy law. If a creditor has taken possession of your property, you must contact an attorney at our Arizona Bankruptcy Law firm now. Our attorneys may be able to help you recover your repossession through bankruptcy protection if we act quickly. Our firm has helped clients in Arizona recover or prevent reposession of: furniture personal property cars trucks jewelry boats Losing your car can have a great impact on your life: it can completely disrupt your entire lifestyle — getting to work, taking your kids to school…. it is important property that you may not be able to live without. Our established, professional Mesa bankruptcy lawyers have the knowledge of dealing with financial issues such as vehicle repossessions. Published By: My AZ Lawyers Mesa Location: 1731 West Baseline Rd., Suite #100 Mesa, AZ 85202 Office: (480) 448-9800 Glendale Location: 20325 N 51st Avenue Suite #134, Building 5 Glendale, AZ 85308 Office: (602) 509-0955 Tucson Location: 2 East Congress St., Suite #900-6A Tucson, AZ 85701 Office: (520) 441-1450 Avondale Location: 12725 W. Indian School Rd., Ste E, #101 Avondale, AZ 85392 Office: (623) 499-4222 The post Chapter 13 and Mesa Vehicle Repossession appeared first on My AZ Lawyers.

4 New Years Resolutions To Get Out Of Debt It’s a new year and so many of us in Mesa, Arizona and around the country have made resolutions for 2014. Lose weight. Get healthier. Exercise more. Quit smoking. Be a better father/mother/child and so forth. All of these are excellent resolutions and really something worth attaining. The trick of course is how to attain those this year and not just setting empty goals that don’t get met and “oh well, it’s another year, better luck next time.” For millions of Americans, whether you live in Mesa, Arizona or Portland, Maine, another, very important goal is to get out of debt. This is a resolution that carries a lot of impact. Debt is crushing and can create extreme stress that individuals and families who live with debt know all too well. Debt comes in many forms: mortgages, second mortgages, personal loans (such as to family and friends) car loans, department store debts, school loans, credit cards, medical bills and even tax debts to the IRS or to the state. Some debt is of course worse than other debt. A mortgage on a decent interest rate (say 4%) over thirty years, on a home you live in happily, is not a “bad debt”. A high interest adjustable rate mortgage debt however on a home in Mesa, Arizona that is worth far less than you paid for it and that you cannot even afford to cool all of, for example could be a very crushing debt for someone. Obviously high interest credit card loans are really stressful and “bad” for people. Even department store cards can get out of control with interest and late payment penalties. For Mesa, Arizona residents, we are lucky to live in a great community with many opportunities. We however, have also felt the terrible burden of the crashing real estate market and its devastating ripple effects all around us on our economy. The fact that we are now finally able to claw our way up out of this morass is a blessing but we realize there is plenty of damage to clean up along the way. Some of the ripple effects include people with more debt than is able to be managed. You can be stuck in the endless cycle of paying late fees, penalties and interest only and never get out of the debt mess. Step 1: Declare Bankruptcy One solution to start the process of straightening out the mess is to declare bankruptcy. Contrary to what some may think, bankruptcy does not mean you are shirking your responsibilities and not paying debts. It is a legal way of getting pressure off so you can start the process of sorting through the debt. Contacting a legal professional here in Mesa is a good place to start to find out about bankruptcy. Step 2: Stop Using Credit Cards Another key action to take to start getting out of debt is stop putting things on credit cards. You are already in the mess you are in. Stop it – don’t make it worse because the more it grows the harder it will be to dig out. Step 3: Eliminate Careless Spending Step three is to start carefully tracking purchases and eliminate any careless “accidental” spending. Going to the mall in Mesa or Phoenix? Consider first what you will be purchasing and write down what you need. Leave credit cards behind. Bring only the cash you need to spend and that’s it. Then keep track of your purchases and everything you got carefully. Step 4: Budget Step four is to review all of your past spending habits and find what the bad habits are and where money is being wasted. Do you clip coupons? Do you waste food? Are you going to more expensive supermarkets instead of discount markets where you can still get quality for less? Second from housing, food is a very large budget item for most families and can be the average family spends in excess of ten thousand dollars per year on food. Many families looking to save money reduce food costs easily without any sacrifice to healthy eating or yummy meals. In addition to groceries other costs come in the form of cable bills, cell phone bills, home alarm systems, cleaning services, eating out, entertainment costs and other loose cash expenditures. Bottom line – grab ahold of your budget and rein it in. NOW. Published By: My AZ Lawyers – Candace Kallen Mesa Location: 1731 West Baseline Rd., Suite #100 Mesa, AZ 85202 Office: (480) 448-9800 Glendale Location: 20325 N 51st Avenue Suite #134, Building 5 Glendale, AZ 85308 Office: (602) 509-0955 Tucson Location: 2 East Congress St., Suite #900-6A Tucson, AZ 85701 Office: (520) 441-1450 Avondale Location: 12725 W. Indian School Rd., Ste E, #101 Avondale, AZ 85392 Office: (623) 499-4222 The post 4 New Years Resolutions To Get Out Of Debt appeared first on My AZ Lawyers.

By Mireya NavarrroNew York City and state officials have thrown their weight behind an elderly widow fighting to keep her rent-stabilized lease from becoming an asset with which to pay off her creditors, arguing that it would undermine the safeguards that both bankruptcy and rent laws are supposed to provide.In a brief filed jointly this week with the state’s Court of Appeals, lawyers from the state attorney general’s office and New York City’s Law Department said that, under current law, a lease for a rent-regulated apartment is not property that can be sold. Such a lease, they argued, amounts to a public benefit, just like disability or unemployment benefits, that is exempted from a bankruptcy estate and cannot be seized as an asset in a personal bankruptcy.The friend of the court brief filed by the state and the city underscores the importance of a case that bankruptcy lawyers say poses a major risk to New Yorkers who seek protection and happen to live in rent-stabilized apartments. The case, the brief argues, also threatens to circumvent rent-stabilization laws enacted by both the city and the state. It comes at a time of high demand for affordable housing amid the steady loss of rent-regulated apartments to market-rate conversions.“Rent-stabilized housing provides millions of vulnerable New Yorkers with the guarantee of an affordable place to live,” said Matt Mittenthal, a spokesman for Eric T. Schneiderman, the New York State attorney general. “State law simply does not allow the benefits that come with that crucial program to be seized and sold in a bankruptcy.”The bankruptcy case was brought in 2011 by Mary Veronica Santiago, 79, who has lived in a two-bedroom apartment in the East Village of Manhattan for more than 50 years and who sought Chapter 7 protection after accumulating a debt of $23,000, mostly in credit card bills.Ms. Santiago was not behind on her $703 rent, but her landlord, who was not among her creditors, stepped into her bankruptcy case with an offer to buy her rent-stabilized lease and produce the money to pay off her debt. The bankruptcy trustee in charge of marshaling her assets, John S. Pereira, accepted the offer. But Ms. Santiago, fearing her eventual eviction despite an agreement to let her stay in her apartment, challenged that decision.After both a bankruptcy court and a Federal District Court sided with the bankruptcy trustee, Ms. Santiago appealed to the United States Court of Appeals for the Second Circuit, which for the first time will weigh in on whether a rent-stabilized lease can be treated as an asset in bankruptcy cases, like a car or a piece of land.But before ruling on the matter, the federal court sent the case to the New York Court of Appeals in March to decide on a question of state law: whether the lease is exempt from a tenant’s assets for the purposes of bankruptcy proceedings.A lawyer for Mr. Pereira said that trustees, who get a commission on the assets they are able to gather, have an obligation to marshal all assets to get a debt paid. Under federal bankruptcy law, states can decide which assets can be exempted from an estate. Mr. Pereira’s lawyer argues that the state does not specify rent-stabilized leases in such a list of exemptions and that the State Legislature did not intend to include them.“If the city and state now believe that these leases should be included, the appropriate way to deal with this issue is by enacting legislation addressing rent-stabilized leases in the context of an individual’s bankruptcy estate,” the lawyer, J. David Dantzler Jr., said.But the city and the state said that such an exemption already existed, under public benefits, and that the “state law has long barred creditors from enforcing a money judgment against the value of a rent-stabilized lease.”In their brief, the officials noted that rent-stabilized tenants have a median income “appreciably lower” than tenants paying the market rate, and that without rent law protections, “the result would be a metropolis largely consisting of the very rich and very poor.”The trustee has proposed an arrangement in which the landlord would pay Ms. Santiago’s debt, pay the trustee and his lawyer, and allow her to live out her years in her apartment.Copyright 2014 The New York Times Company.  All rights reserved.

We meet people almost every day that have large student loan payments.　 Unfortunately, as we have discussed in the past, most student loans are not dischargeable.　 While the payments can be made through a Chapter 13 Bankruptcy, they will not be discharged.　 While we try to assist our clients in any way possible, the bankruptcy code and case law somewhat limit us in this area.　 This can leave our clients unsure of how to proceed.　 A quick internet search of loan options will produce an overwhelming amount of information, and much of that information is contradictory to other sources.　 It can be hard to know where to turn for answers.　 Another unfortunate truth is that many student loan companies do not do much in the way of offering help to the people that need it the most.　 Even when the companies do offer help they don’t always properly explain the options and the implications associated with those options.　 It is easy to see why people turn to student loan assistance companies.　 People think they are dealing with experts in their field, companies that understand and care, and companies that can actually help.　 Unfortunately, many of these companies are predatory in nature and these companies. Sadly, these practices primarily imp Remember, if they are offering to help you they are getting something out of the deal.　 This loan assistance companies are for-profit entities that are making money off of the advice they give you.　 Many of these companies offer the world and seem to ask for very little in return.　 Word to the wise: if it seems too good to be true it probably is!However, in the last few week the Illinois Attorney General has decided to do something about this.　 The Illinois Attorney General has filed two law suits this month, one against Broadsword Student Advantage, LLC and the second against First American Tax Defense, LLC.　 The long and short of the allegations the Illinois Attorney General has included in the complaint against Broadsword Student Advantage is that the offered to reduce payments, reduce interest rates, and or consolidate loans, however, they were charging people a fee of $499 up front and a recurring monthly fee of $49 when this information is available for free to lenders. 　Further, the services Broadsword claimed to offer we not all available to consumers.　 In the second case the Illinois Attorney General has filed, against First American, the state alleges that First American offered to get lower payments, obtain forgiveness of loans, and the ability to fix credit scores.　 First American was charging $1,199 and up for these services, which are otherwise free to lenders. Basically, you should take a few things from this.　 First, is to be careful.　 Second, while these cases were filed as violations of Illinois laws it will be interesting to watch and see how those cases come out and whether other states begin to follow suit.　 　　If you have questions about this, or any other bankruptcy question, please feel free to contact your St. Louis Bankruptcy Attorney today!

There are more bankruptcy decisions that come out of the Fifth Circuit each month than I could ever write about.   I am going to try to provide at least a brief blurb for each one.  Here are five cases from the Fifth Circuit that came out during August.   They deal with discharge, dischargeability, jurisdiction and Stern issues, lien claims and preferences.Graham Mortgage Company v. Goff (In re Goff),No. 13-41148 (5th Cir. 8/22/14)(unpublished).   Fifth Circuit affirmed denial of discharge for failure to keep records under § 727(a)(3).  Opinion here.Galaz v. Galaz (In re Galaz), No. 13-50781 (5th Cir. 8/25/14).   Court found no jurisdiction over claims brought by non-debtor against non-debtor.   Debtor's fraudulent transfer claims against non-debtor were non-core claims for which Bankruptcy Court could not enter final judgment but could submit proposed findings and conclusions here.   Opinion here. McClendon v. Springfield (In re McClendon), No. 13-41030 (5th Cir. 8/26/14).   Court affirmed judgment of non-dischargeability for defamation claim under § 526(a)(6).   Employee who was fired brought claims for defamation against president of employer who accused him of theft.   Court did not give collateral estoppel effect to jury verdict but conducted trial.    Court found objective certainty of harm from statements.Endeavor Energy Resources, LP v. Heritage Consolidated, LP (In re Heritage Consolidated, LLC), No. 13-10969 (5th Cir. 8/27/14).    Court affirmed summary judgment against drillers for constructive trust and equitable lien claims.   Court reversed and remanded on summary judgment on drillers' mineral subcontractor lien claims.    Opinion here. Flooring Systems, Inc. v. Chow (In re Poston), No. 13-41050 (5th Cir. 8/28/14).   Court affirmed judgment to recover preference from creditor.    Transfer occurred when state court receiver served certified copy of receivership order on bank, not when turnover receiver was appointed.   Opinion here.