Tuesday, May 24, 2011
A Chapter 7 Liquidation Normally Liquidates...Nothing!
The majority of Chapter 7 Bankruptcy Cases in Arizona are "no-asset" cases, which means that the Bankruptcy Trustee appointed to the case has reached a conclusion that there's no good economic reason to try to liquidate your replica autographed Star Wars Special Edition Obi-Wan FX Lightsaber, even though it's not exempt under the exemption laws in the state of Arizona.
If the trustee can't find at least six hundred or eight hundred dollars, net, worth of non-exempt assets to liquidate in your case, he or she is likely to just walk on by.
Which, in the context of a Chapter 7 Bankruptcy, means to stamp the case "NO ASSETS", and go on to the next file.
Saturday, May 21, 2011
My All Time Most Popular Phoenix, Arizona Bankruptcy Attorney Articles!
Have fun!
All Time Most Popular Bankruptcy Posts
-
There are some questions that come up with great frequency. I've posted blog entries to address some of those, and the most frequently asked... - This is designed to help my clients fill information into their forms. This is not legal advice for somebody in New York, or anybody else, b...
- Here's the deal: when you fill out your forms online in our computerized system, there will come a point when you are finished, and you will...
- Well, that depends. First, you have to sort of understand the process, and fill out the forms, and go over the forms to make sure they're ...
- Prior to your bankruptcy, suffer and worry a lot. You will, no matter what, and all that suffering will make you feel better when the overwh...
- I built a list a lot like this 30 years ago, so when I came back from a gigantic lunch I wouldn't forget to ask about important stuff. See...
- This is a post from a new blog I've started. It has one purpose in mind: it's designed to help folks who have small businesses bring in more...
- The first meeting of creditors may be the only hearing in a Consumer Chapter 7 Bankruptcy Case. Here's a video that explains it, and after...
- There's an old joke among lawyers: a bankruptcy attorney walks into a cocktail party, and the divorce lawyer asks, "How does a bankruptcy la...
Why Do I Have to Include My Wife in my Bankruptcy? Can I Keep My Husband out of my Bankruptcy Case?
People love their husbands and wives, and want to spare them the embarrassment and the pain in the neck of filing; that's easy to understand.
Normally, it doesn't work very well if a spouse doesn't file.
If you watch this educational bankruptcy video, you'll know what I'm talking about.
Normally, it doesn't work very well if a spouse doesn't file.
If you watch this educational bankruptcy video, you'll know what I'm talking about.
Thursday, May 19, 2011
Top Ten Bankruptcy Articles This Week!
Here are this week's top Arizona Bankruptcy Attorney articles! Enjoy!
Top Ten Bankruptcy Articles This Week in my Other Blog!
- Top Ten Most Popular Bankruptcy Posts of the Month Bankruptcy Arizona: Do Rising Gas Prices Threaten the Recovery? An article at KTAR.co...
- Small businesses file bankruptcy (or just close the doors, and let the owners file bankruptcy) for a lot of reasons. The most common is un...
- Here's the deal: when you fill out your forms online in our computerized system, there will come a point when you are finished, and you will...
- Has anybody else tried to post a pdf on a blog, whether it's an Arizona Bankruptcy Blog, or anyplace else? For a simple back-country Arizo...
- You know Zimbabwe, right? It's the country that printed so much paper money that it became worthless. But Zimbabwe was much more conside...
- I don't do mortgage modifications right now, but there's a nifty Nolo's Bankruptcy and Foreclosure Blog that points to a government website...
- There is an interesting article about the rise and fall of the Icelandic Economy in the New York Times. While the discussions of bankers g...
- Prior to your bankruptcy, suffer and worry a lot. You will, no matter what, and all that suffering will make you feel better when the overwh...
- One thing about people in the United States: even though we're knee-deep in a depression, with bankruptcy cases to the right of us and the l...
- This is designed to help my clients fill information into their forms. This is not legal advice for somebody in New York, or anybody else, b...
Friday, January 28, 2011
Nice, Simple Explanation of Chapter 7 Bankruptcy
The only thing about this explanation of a Chapter 7 Bankruptcy case that won't apply to you is that it discusses exemptions in a State that isn't Arizona.
So ignore that, and let the lucid, linear discussion of a Chapter 7 Bankruptcy wash over you as you read this online article.
So ignore that, and let the lucid, linear discussion of a Chapter 7 Bankruptcy wash over you as you read this online article.
Saturday, January 8, 2011
Stay Current if You Want to Keep It!
If You Want to Keep It, Make the Darn Payments!
Here's one of the small ones.
No matter how smart people are, if there's a little extra money in the bank at the end of the month, they don't usually see that as an emergency.
So what about the situation where they know that they want to keep a car in their Chapter 7, and they know they have to stay current on the car, and the automatic deductions have stopped?
And the automatic payments weren't being made, so the debtor just twiddles thumbs because, after all, there's money in the bank, right?
Well, that ultimately turns into an emergency, when the discharge is entered, and the automatic stay relating to property of the debtor evaporates.
Because then, the debtor says "I didn't notice that the automatic payments weren't coming out of the account, but I really intended to say current, like I told you!"
Sadly, the creditor has no particular sense of humor of which the creditor is aware.
So the creditor will either repo the car, or tell the debtor that they are going to repo the car (less frequent, but some vultures have good table manners).
Remember, the entire area of reaffirmations is fraught with peril.
I have a strong bias: a smart debtor will walk away from the car that has negative equity, NOT reaffirm (even if the judge would permit it, and that's dicey), and then buy a BETTER car at an auction after the filing. A smart debtor will also walk away from a car, even if it has a little equity, if he owes ten or twenty thou on it.
And the smart debtor will find an auction or a private party sale.
Where will the debtor find the five thousand or ten thousand to take to the auction?
Well, that's what parents are for, isn't it?
Note: this one has the potential to be a REALLY big problem. Say the debtor actually reaffirms, and doesn't make the payments. Then the creditor repos the car, sells it at the auction where the debtor should have bought his new car, and comes after the debtor with the dreaded deficiency judgment.
Does that sound like a good idea to anybody?
And while we're on the topic, drive safe, everybody. This is almost New Year, and they actually AIM to hit your car on the roads right now!
p.s. before you borrow money from mom, dad, boyfriend, girlfriend, or an alien from the planet Neptune, become an expert on buying used cars. Go to Amazon.com, and get ten books on how to buy a used car, or how to buy a used car at an auction. Read them. Then borrow. Then buy.
I am not an expert on buying used cars. Eventually, my clients will bring me industrial espionage on the best car auctions out there. Until then, you're on your own.
p.p.s. What happens if you buy a lemon at an auction? Hey, I just work here. All the advice in the world will not protect against the reality that it's better to be lucky than smart.
Life After Bankruptcy in Arizona!
If You HAVE to File, Is There Life After Bankruptcy?
Recently a client sent me a lovely email discussing how well things had worked for them a short time after they had filed a bankruptcy.This is not to say that bankruptcy is a cure-all for what ails ya, or that it's fun, or easy. It's not.
But sometimes it's the right tool for the job.
So if you're scared to death about bankruptcy, good! You're paying attention!
But some people get a very good result, if they work hard after they file.
p.s. I talked to a mortgage broker recently, who told me that it took two years after a bankruptcy, assuming all the other factors were there, to obtain a new mortgage and buy a new house. And she also said it varied a bit from lender to lender to lender; I said I'd pass the life-after-bankruptcy information on to my readers.
The First Meeting of Creditors, Explained!
Your First Meeting of Creditors (the 341 Meeting) is one of the standard, garden-variety procedural events in your Chapter 7 Bankruptcy Case in Arizona.
It will be easy, or troublesome, or a major disaster, depending to a large extent on how you have prepared for that hearing, and the preparation begins with filling out your schedules accurately and completely.
After your Arizona Bankruptcy Lawyer has filed your Bankruptcy Petition for you, based on the information you have given him, you will receive a "Trustee's Letter", which may be written on paper, and may be electronic. Generally, it will ask you to send copies of three years of tax returns, copies of titles, and similar materials by mail to your Arizona Bankruptcy Trustee.
If you do that, within the time frames required by the trustee, your First Meeting will be easier for you. I suggest that you keep two copies of everything you sent to your trustee, one for your records, and one to bring with you to your first meeting, in case the post office goofed.
Remember that you must bring a social security card and driver's license to your First Meeting, and that you may not bring weapons or dogs into the Federal Building (although yesterday I was told by the Federal Marshals who operated the scanners and x-ray machines that they do permit seeing-eye dogs).
I have talked at length about the First Meeting in Bankruptcy Cases in Arizona. Here I am, doing just that!
It will be easy, or troublesome, or a major disaster, depending to a large extent on how you have prepared for that hearing, and the preparation begins with filling out your schedules accurately and completely.
After your Arizona Bankruptcy Lawyer has filed your Bankruptcy Petition for you, based on the information you have given him, you will receive a "Trustee's Letter", which may be written on paper, and may be electronic. Generally, it will ask you to send copies of three years of tax returns, copies of titles, and similar materials by mail to your Arizona Bankruptcy Trustee.
If you do that, within the time frames required by the trustee, your First Meeting will be easier for you. I suggest that you keep two copies of everything you sent to your trustee, one for your records, and one to bring with you to your first meeting, in case the post office goofed.
Remember that you must bring a social security card and driver's license to your First Meeting, and that you may not bring weapons or dogs into the Federal Building (although yesterday I was told by the Federal Marshals who operated the scanners and x-ray machines that they do permit seeing-eye dogs).
I have talked at length about the First Meeting in Bankruptcy Cases in Arizona. Here I am, doing just that!
Friday, January 7, 2011
Considering a Bankruptcy? How Would You Make A Decision to File a Bankruptcy in Arizona?
There are a lot of ways to reach a decision to file a bankruptcy, and since it's your life, it's your decision. I may have more credentials as a bankruptcy lawyer than a dog has fleas, but you have to make the decision on your own, because I won't sell you on the idea of filing a bankruptcy.
I might tell you not to file a bankruptcy, if you had a three hundred dollars in debt, and a hundred thousand dollars of income a year; that just wouldn't make any sense!
Now, there are some guidelines to help you make your decision.
One is the Joseph C. McDaniel Rule of Bankruptcy Inevitability, which says that if you have unsecured debt (like credit card debt and medical bills) that are the same amount as your yearly income, you're a walking bankruptcy case, whether you know it or not.
The reason is that you can make minimum payments, and work extra jobs, and burn through your retirement funds (I hate it when you do that!!!) for a while, but eventually, you'll get sick, tired, depressed, divorced, sued, or run over by a truck.
And then you get to file a bankruptcy, even though you've struggled against it for years.
Most of my clients tell me that they experience a fair amount of peace after resigning themselves to a bankruptcy. My high-income professional clients often tell me it was the best decision they ever made for their mental health.
Some people like to watch videos instead of reading, which is simply a personal preference, so if you like videos best, watch these and then give us a call.
But if you are confused about filing a bankruptcy, consider the following issues, which should help make the decision easier for you:
1) do you pass the means test, or can you pass the means test by the time we file for you? For that analysis, you'll need a median income calculator and maybe a means test calculator.
2) do you have more unsecured debt than your yearly income? For that, you just need a pocket calculator!
3) could you ever, if you lived forever, pay off your unsecured debt? You probably want to consult a free, online credit card payoff calculator.
4) do you ever want to retire? Ask yourself, if you ever want to retire, and you can't put money in a retirement vehicle, do you need to file a bankruptcy? And how long will it take you to save money to retire? For that, you'll need a free, online retirement calculator, I think.
5) The above issues will probably help a lot, but if you are still teetering, consider this: will you, with your current debt load, ever be able to put your kids through college? And if not, will they thrive asking the question of the ages: "Would you like fries with that, sir?"
6) And for those of you who still can't decide if they should file a bankruptcy, you might want to check and see how much underwater your house is right now, because some people have a foggy idea that they can just sell their houses when it's time to retire. That's probably wrong, for the next twenty years. But check Zillow.com to see how much your house is worth today.
7) After that, if you want to talk about filing a bankruptcy, do your bankruptcy homework, and then, well....
I might tell you not to file a bankruptcy, if you had a three hundred dollars in debt, and a hundred thousand dollars of income a year; that just wouldn't make any sense!
Now, there are some guidelines to help you make your decision.
One is the Joseph C. McDaniel Rule of Bankruptcy Inevitability, which says that if you have unsecured debt (like credit card debt and medical bills) that are the same amount as your yearly income, you're a walking bankruptcy case, whether you know it or not.
The reason is that you can make minimum payments, and work extra jobs, and burn through your retirement funds (I hate it when you do that!!!) for a while, but eventually, you'll get sick, tired, depressed, divorced, sued, or run over by a truck.
And then you get to file a bankruptcy, even though you've struggled against it for years.
Most of my clients tell me that they experience a fair amount of peace after resigning themselves to a bankruptcy. My high-income professional clients often tell me it was the best decision they ever made for their mental health.
Some people like to watch videos instead of reading, which is simply a personal preference, so if you like videos best, watch these and then give us a call.
But if you are confused about filing a bankruptcy, consider the following issues, which should help make the decision easier for you:
1) do you pass the means test, or can you pass the means test by the time we file for you? For that analysis, you'll need a median income calculator and maybe a means test calculator.
2) do you have more unsecured debt than your yearly income? For that, you just need a pocket calculator!
3) could you ever, if you lived forever, pay off your unsecured debt? You probably want to consult a free, online credit card payoff calculator.
4) do you ever want to retire? Ask yourself, if you ever want to retire, and you can't put money in a retirement vehicle, do you need to file a bankruptcy? And how long will it take you to save money to retire? For that, you'll need a free, online retirement calculator, I think.
5) The above issues will probably help a lot, but if you are still teetering, consider this: will you, with your current debt load, ever be able to put your kids through college? And if not, will they thrive asking the question of the ages: "Would you like fries with that, sir?"
6) And for those of you who still can't decide if they should file a bankruptcy, you might want to check and see how much underwater your house is right now, because some people have a foggy idea that they can just sell their houses when it's time to retire. That's probably wrong, for the next twenty years. But check Zillow.com to see how much your house is worth today.
7) After that, if you want to talk about filing a bankruptcy, do your bankruptcy homework, and then, well....
Thursday, January 6, 2011
What Are Bankruptcy Exemptions? What Can I Keep If I File a Chapter 7 Bankruptcy in Arizona?
Well, it's not as bad as you think.
In fact, the news is pretty good; most people who file a Chapter 7 Bankruptcy don't lose anything to the bankruptcy trustee in the case. Those are called "no-asset" bankruptcy cases, and they make up about 97 per cent of all Chapter 7 cases in Arizona, the last time I checked.
So do all people who file a bankruptcy in Arizona get to rely on the Arizona Exemptions?
Nope!
So have to use their prior state's exemptions, and some get to use the Federal Bankruptcy Exemptions, even though Arizona is an "opt-out" state. I'll talk more about this issue in the future.
There is a lovely PDF of the Arizona Bankruptcy Exemption Statutes provided by the U.S. Bankruptcy Court for the District of Arizona, and if you are contemplating bankruptcy in Phoenix, Scottsdale, Glendale, Chandler, Tempe, Mesa or anyplace else in Arizona, you should take a look at them; in fact, print them out and read them again and again!
Remember that in a married couple case, each member of the couple get the benefit of the entire exemption list, except the homestead (that is, each gets to keep the clothing exemption, right? But a married couple doesn't get a $300,000 homestead exemption!).
In fact, the news is pretty good; most people who file a Chapter 7 Bankruptcy don't lose anything to the bankruptcy trustee in the case. Those are called "no-asset" bankruptcy cases, and they make up about 97 per cent of all Chapter 7 cases in Arizona, the last time I checked.
So do all people who file a bankruptcy in Arizona get to rely on the Arizona Exemptions?
Nope!
So have to use their prior state's exemptions, and some get to use the Federal Bankruptcy Exemptions, even though Arizona is an "opt-out" state. I'll talk more about this issue in the future.
There is a lovely PDF of the Arizona Bankruptcy Exemption Statutes provided by the U.S. Bankruptcy Court for the District of Arizona, and if you are contemplating bankruptcy in Phoenix, Scottsdale, Glendale, Chandler, Tempe, Mesa or anyplace else in Arizona, you should take a look at them; in fact, print them out and read them again and again!
Remember that in a married couple case, each member of the couple get the benefit of the entire exemption list, except the homestead (that is, each gets to keep the clothing exemption, right? But a married couple doesn't get a $300,000 homestead exemption!).
Friday, December 31, 2010
Play Twenty Questions with an Arizona Bankruptcy Lawyer!
I built a list a lot like this 30 years ago, so when I came back from a gigantic lunch I wouldn't forget to ask about important stuff.
See, the problem with a gigantic lunch is that afterward you just want to sleep; and if you're sleepy during a client conference you may not ask all the right questions. So I built a bankruptcy checklist so there wouldn't be any surprises.
Now, nothing at all will fully eliminate all bad surprises in a bankruptcy case; you may have a bankruptcy trustee who just plain doesn't like you (doesn't happen often, but it could) or you might just forget to list an asset (and if you do, God help you, given the 2005 amendments). But if you answer these questions before you come in and see me, it'll give me (or them) more time to answer YOUR questions, which is a good thing.
This particular list is a work in progress. I'm going to play around with it over time to make it more perfect, but for now, use it to accumulate information before you come in to say hello to me or anybody else you like.
Let your prospective lawyer know the following:
Your name:
Your phone numbers:
Your email address:
Your physical address:
Do you pass the means test? (remember the free online means test calculator); don't panic if you don't pass. We'll talk.
Did you file your most recent bankruptcy MORE THAN eight years ago?
Have you lived in Arizona for the last two years?
Do you know that you WON'T, in all probability, discharge tax debt, debts associated with child support and alimony, fraud judgments, and student loans? If you have such debts, list them here:
Are you judgment-free? If not, list your judgments and describe them:
Do you have LESS than $150,000 in equity in your primary residence? How much less?
Do you have LESS than $5,000 in equity in any car?
Have you made some of the payments on a car not titled in your name, like your child's car?
Do you have a car titled in your name, but all the payments were made by somebody else?
Do you want to surrender your car to the lien holder?
Do you want to keep your car? If so, learn about reaffirmation (I'll link to this word in an upcoming edit)(note: I'd rather have a root canal than do a reaffirmation for you)
Have you filed your last three years of tax returns? (note that the trustee will want to see those, PRONTO, right after a filing, along with a bunch of other copies of documents. Make sure you do not disappoint the nice trustee. Not kidding even a little bit.)
Do you have a tax refund still owed to you? Do you know that if you are owed a tax refund on the date of filing, you should kiss that tax refund good-bye? Because you MUST turn it over to the trustee, because it's property of the estate. If you don't have an emergency, better to wait and buy a little food with it, but maybe that's just me. You MIGHT get back a pro-rated slice of the tax refund, SOMEDAY, but better if you count it as gone forever if it's owed to you on the date of the filing.
Are you suing somebody, or do you have a reason to sue somebody? Because you MUST list your cause of action and the trustee WILL own it when a filing happens. So if you were looking to collect on your whiplash lawsuit, forget about it. It belongs to the trustee.
Have you been accused of fraud in any context?
Have you actually committed fraud in any context? (for instance, did you sort of fib about making a million dollars a year in income so you could get a big limit on your credit cards. Tell me now, it'll be less painful than if I have to find out later)(and it's not like I've never heard it before, whatever it is)
Do you have big non-exempt assets, like other houses, real property in general, stocks or bonds, jet-skis, airplanes, boats, toy-haulers, three-wheelers, dune buggies, gliders, hot-air balloons, Waterford crystal collections, Beanie Baby collections, stock options, or ANY OTHER BIG STUFF which the trustee could sell to pay your creditors?
Do you have retirement accounts like 401k or pension accounts of any kind? What kind and how much in them?
Do you have an inheritance to which you might become entitled within the next year or so? Another way to ask this is the following: do you have a puny rich relative who likes you a lot and who will die soon? Because if they go to heaven within six months of your filing, the inheritance you might have gotten goes into the estate. Or you lose your discharge.
Do you need open-heart surgery or a brain transplant (to see if you're paying attention)? If so, maybe we wait until after the surgery.
Are you planning to get a divorce soon? If so, leave now. Put down the magazine and the soda pop, I don't want to talk to you. If the two of you disagree, and one of you tells me to go left, and the other tells me to go right, I'm frozen in place and can't chew my gum. Uncomfortable. So leave.
Are you employed? ARE YOU SELF-EMPLOYED?
Do you own all or any part of a corporation, limited liability company, partnership, or any other business entity, or a dba? Talk to me A LOT about your business, if you have one.
How much do you make per year in regular income?
How much are your secured debts?
How much are your unsecured debts?
Have you bounced checks you didn't cover? Note: bad idea.
Do you have dishonored gambling markers from Vegas? Not kidding. This is a big deal. Go to jail, do not pass go, unless handled properly.
Have you made any transfers of any sort in the last year? Four years? What were they?
Do you have check registers that show where you've spent your money? Or other records?
Do you fully understand that you have to list ALL your creditors, even if you want to pay them, or you dispute them, or you love them, or you hate them, or they're relatives, and that you must also list the collection agencies and lawyers who have tried to collect for your creditors?
Did you get that you have to list all your creditors? With correct addresses and zip codes and account numbers? And that I'm telling you to pull THREE credit reports as a safety net, although you will want to review your own records first.
Do you get it that you have to list all your assets? Even the broken down truck with no transmission? And even the pyramid scheme $4,000 of stale cosmetics in the store room? And you'll get in BIG TROUBLE if you don't list all your stuff? And that the trustee has antenna like My Favorite Martian and will, not may, know if you don't list stuff? No, I'm not kidding, actually. Under their hair. Or behind their ears.
Do you get it that you have to list all your assets, and put a value on them, and that you have to value each television separately? You can't say, "six televisions, value unknown" ?
One quick question here: do you understand that you're going to have to list all your debts and all your assets, and if you're "cute" the trustee will be your worst nightmare? And that you will wish you had never filed or been born? Just checking.
Did you STOP using your credit cards at least 90 days ago? This one isn't fatal, but tell me.
Did you repay a debt to a relative within the last year? Big debt, big repayment, big problem. Preference.
Did anybody cosign on any of your debts? List 'em also.
Did you cosign on a debt for someone else? List 'em.
Do you understand that you have to keep me informed if you move within the next three years, because your case may be open for three years?
Do you understand that I'm not your lawyer for any purposes until you've signed my retainer agreement and paid the retainer and the filing fee?
Do you understand you MUST do pre and post filing consumer credit counseling, which will cost you around $100?
Are you currently being sued? Why? What's the answer date? Or was it answered?
Is there a trustee's sale scheduled on your primary residence?
WHAT ELSE do you think I ought to know about you before I decide (or anybody else decides) whether to accept you as a client? Is there a murder warrant out on you? Are you a legal citizen of the United States? Are you a member of an organized crime family who murders lawyers who get results you don't like (in which case, have I got a lawyer for you! Great guy! You'll love him!).
And do you understand that the forms don't fill themselves out, YOU DO, and that you'll need to do a complete, truthful and accurate job of filling out the forms online so your case won't be a disaster? Note: my paralegal has told me she has a friend in an organized crime family who will, not may, visit me if I ever take another "big cardboard box with bills in it" bankruptcy case. So if that's you, have a great day! I'll refer you to a beginner who needs the practice!
Now go back and finish your bankruptcy homework by printing the form there, filling it out for me, and then set up an appointment with me if you haven't already done that!
See, the problem with a gigantic lunch is that afterward you just want to sleep; and if you're sleepy during a client conference you may not ask all the right questions. So I built a bankruptcy checklist so there wouldn't be any surprises.
Now, nothing at all will fully eliminate all bad surprises in a bankruptcy case; you may have a bankruptcy trustee who just plain doesn't like you (doesn't happen often, but it could) or you might just forget to list an asset (and if you do, God help you, given the 2005 amendments). But if you answer these questions before you come in and see me, it'll give me (or them) more time to answer YOUR questions, which is a good thing.
This particular list is a work in progress. I'm going to play around with it over time to make it more perfect, but for now, use it to accumulate information before you come in to say hello to me or anybody else you like.
Let your prospective lawyer know the following:
Your name:
Your phone numbers:
Your email address:
Your physical address:
Do you pass the means test? (remember the free online means test calculator); don't panic if you don't pass. We'll talk.
Did you file your most recent bankruptcy MORE THAN eight years ago?
Have you lived in Arizona for the last two years?
Do you know that you WON'T, in all probability, discharge tax debt, debts associated with child support and alimony, fraud judgments, and student loans? If you have such debts, list them here:
Are you judgment-free? If not, list your judgments and describe them:
Do you have LESS than $150,000 in equity in your primary residence? How much less?
Do you have LESS than $5,000 in equity in any car?
Have you made some of the payments on a car not titled in your name, like your child's car?
Do you have a car titled in your name, but all the payments were made by somebody else?
Do you want to surrender your car to the lien holder?
Do you want to keep your car? If so, learn about reaffirmation (I'll link to this word in an upcoming edit)(note: I'd rather have a root canal than do a reaffirmation for you)
Have you filed your last three years of tax returns? (note that the trustee will want to see those, PRONTO, right after a filing, along with a bunch of other copies of documents. Make sure you do not disappoint the nice trustee. Not kidding even a little bit.)
Do you have a tax refund still owed to you? Do you know that if you are owed a tax refund on the date of filing, you should kiss that tax refund good-bye? Because you MUST turn it over to the trustee, because it's property of the estate. If you don't have an emergency, better to wait and buy a little food with it, but maybe that's just me. You MIGHT get back a pro-rated slice of the tax refund, SOMEDAY, but better if you count it as gone forever if it's owed to you on the date of the filing.
Are you suing somebody, or do you have a reason to sue somebody? Because you MUST list your cause of action and the trustee WILL own it when a filing happens. So if you were looking to collect on your whiplash lawsuit, forget about it. It belongs to the trustee.
Have you been accused of fraud in any context?
Have you actually committed fraud in any context? (for instance, did you sort of fib about making a million dollars a year in income so you could get a big limit on your credit cards. Tell me now, it'll be less painful than if I have to find out later)(and it's not like I've never heard it before, whatever it is)
Do you have big non-exempt assets, like other houses, real property in general, stocks or bonds, jet-skis, airplanes, boats, toy-haulers, three-wheelers, dune buggies, gliders, hot-air balloons, Waterford crystal collections, Beanie Baby collections, stock options, or ANY OTHER BIG STUFF which the trustee could sell to pay your creditors?
Do you have retirement accounts like 401k or pension accounts of any kind? What kind and how much in them?
Do you have an inheritance to which you might become entitled within the next year or so? Another way to ask this is the following: do you have a puny rich relative who likes you a lot and who will die soon? Because if they go to heaven within six months of your filing, the inheritance you might have gotten goes into the estate. Or you lose your discharge.
Do you need open-heart surgery or a brain transplant (to see if you're paying attention)? If so, maybe we wait until after the surgery.
Are you planning to get a divorce soon? If so, leave now. Put down the magazine and the soda pop, I don't want to talk to you. If the two of you disagree, and one of you tells me to go left, and the other tells me to go right, I'm frozen in place and can't chew my gum. Uncomfortable. So leave.
Are you employed? ARE YOU SELF-EMPLOYED?
Do you own all or any part of a corporation, limited liability company, partnership, or any other business entity, or a dba? Talk to me A LOT about your business, if you have one.
How much do you make per year in regular income?
How much are your secured debts?
How much are your unsecured debts?
Have you bounced checks you didn't cover? Note: bad idea.
Do you have dishonored gambling markers from Vegas? Not kidding. This is a big deal. Go to jail, do not pass go, unless handled properly.
Have you made any transfers of any sort in the last year? Four years? What were they?
Do you have check registers that show where you've spent your money? Or other records?
Do you fully understand that you have to list ALL your creditors, even if you want to pay them, or you dispute them, or you love them, or you hate them, or they're relatives, and that you must also list the collection agencies and lawyers who have tried to collect for your creditors?
Did you get that you have to list all your creditors? With correct addresses and zip codes and account numbers? And that I'm telling you to pull THREE credit reports as a safety net, although you will want to review your own records first.
Do you get it that you have to list all your assets? Even the broken down truck with no transmission? And even the pyramid scheme $4,000 of stale cosmetics in the store room? And you'll get in BIG TROUBLE if you don't list all your stuff? And that the trustee has antenna like My Favorite Martian and will, not may, know if you don't list stuff? No, I'm not kidding, actually. Under their hair. Or behind their ears.
Do you get it that you have to list all your assets, and put a value on them, and that you have to value each television separately? You can't say, "six televisions, value unknown" ?
One quick question here: do you understand that you're going to have to list all your debts and all your assets, and if you're "cute" the trustee will be your worst nightmare? And that you will wish you had never filed or been born? Just checking.
Did you STOP using your credit cards at least 90 days ago? This one isn't fatal, but tell me.
Did you repay a debt to a relative within the last year? Big debt, big repayment, big problem. Preference.
Did anybody cosign on any of your debts? List 'em also.
Did you cosign on a debt for someone else? List 'em.
Do you understand that you have to keep me informed if you move within the next three years, because your case may be open for three years?
Do you understand that I'm not your lawyer for any purposes until you've signed my retainer agreement and paid the retainer and the filing fee?
Do you understand you MUST do pre and post filing consumer credit counseling, which will cost you around $100?
Are you currently being sued? Why? What's the answer date? Or was it answered?
Is there a trustee's sale scheduled on your primary residence?
WHAT ELSE do you think I ought to know about you before I decide (or anybody else decides) whether to accept you as a client? Is there a murder warrant out on you? Are you a legal citizen of the United States? Are you a member of an organized crime family who murders lawyers who get results you don't like (in which case, have I got a lawyer for you! Great guy! You'll love him!).
And do you understand that the forms don't fill themselves out, YOU DO, and that you'll need to do a complete, truthful and accurate job of filling out the forms online so your case won't be a disaster? Note: my paralegal has told me she has a friend in an organized crime family who will, not may, visit me if I ever take another "big cardboard box with bills in it" bankruptcy case. So if that's you, have a great day! I'll refer you to a beginner who needs the practice!
Now go back and finish your bankruptcy homework by printing the form there, filling it out for me, and then set up an appointment with me if you haven't already done that!
Wednesday, December 29, 2010
Where Will I Attend My First Meeting of Creditors? Does the District of Arizona Bankruptcy Court Website Have Directions and Maps?
The First Meeting of Creditors is scheduled about forty days after your Chapter 7 Bankruptcy is filed with the Court. Maybe thirty-nine days, maybe forty-one days, but usually forty days after the bankruptcy is filed.
Here is a video that will walk you through the questions that are often asked at a First Meeting of Creditors; the questions used to be asked of you by your Arizona Bankruptcy Lawyer, but now they are asked by the bankruptcy trustee who is appointed at random from the panel of Chapter 7 Trustees.
VIDEO: WHAT HAPPENS AT YOUR FIRST MEETING OF CREDITORS IN ARIZONA
Where is my First Meeting of Creditors in a Phoenix Bankruptcy?
It is packed with free information about the bankruptcy process, and answers to frequently asked questions, and educational bankruptcy videos, and everything you could want as a point of initial departure for all of your questions about Arizona Bankruptcy!
I have cut and pasted the Phoenix Bankruptcy Court location information below, for my clients and potential Arizona Bankruptcy Filers generally, but you should also go to the horse's mouth to find out if any of the information below has changed.
So here is a link to the Website for the District of Arizona Bankruptcy Court Website, and enjoy all of the Arizona Bankruptcy Information that you'll find there! And best of all, it's My Favorite Price!
Free!
Address:
230 N. First Ave, Suite 101
Phoenix, AZ 85003
Phone:
General:
602-682-4000 or 800-556-9230
Phoenix Telephone Directory
Voice Case Information System (VCIS) - Allows anyone with a touch tone telephone to call the court and receive basic case information free of charge, 24 hours a day, 7 days a week:
602-682-4001 or 888-549-5336
Hours:
9:00 a.m. to 4:00 p.m., M-F
Directions:
Driving: Take 7th Street North exit off I-10. West on Van Buren. Southwest corner of 1st Avenue and Van Buren.
Light Rail:
-From the east, take the westbound train to the Van Buren / Central Ave stop. Walk west on Van Buren one block to 1st Avenue. Cross both 1st Avenue and Van Buren.
-From the north/west, take the eastbound train to the Van Buren / 1st Ave stop. Cross both 1st Avenue and Van Buren. The court is on the Southwest corner of 1st Avenue and Van Buren.
Parking:
Public lots are available nearby (prices vary). The Court does not validate parking receipts.
Click here to see search results for parking near the Court.
Map:
Click here for a map.
Here is a video that will walk you through the questions that are often asked at a First Meeting of Creditors; the questions used to be asked of you by your Arizona Bankruptcy Lawyer, but now they are asked by the bankruptcy trustee who is appointed at random from the panel of Chapter 7 Trustees.
VIDEO: WHAT HAPPENS AT YOUR FIRST MEETING OF CREDITORS IN ARIZONA
Where is my First Meeting of Creditors in a Phoenix Bankruptcy?
Arizona Bankruptcy Court Information, Including How to Find the Bankruptcy Court in Arizona, With MAPS, No Less!
The Arizona Bankruptcy Court Website is nothing short of spiffy!It is packed with free information about the bankruptcy process, and answers to frequently asked questions, and educational bankruptcy videos, and everything you could want as a point of initial departure for all of your questions about Arizona Bankruptcy!
I have cut and pasted the Phoenix Bankruptcy Court location information below, for my clients and potential Arizona Bankruptcy Filers generally, but you should also go to the horse's mouth to find out if any of the information below has changed.
So here is a link to the Website for the District of Arizona Bankruptcy Court Website, and enjoy all of the Arizona Bankruptcy Information that you'll find there! And best of all, it's My Favorite Price!
Free!
Phoenix Division
Address:230 N. First Ave, Suite 101
Phoenix, AZ 85003
Phone:
General:
602-682-4000 or 800-556-9230
Phoenix Telephone Directory
Voice Case Information System (VCIS) - Allows anyone with a touch tone telephone to call the court and receive basic case information free of charge, 24 hours a day, 7 days a week:
602-682-4001 or 888-549-5336
Hours:
9:00 a.m. to 4:00 p.m., M-F
Directions:
Driving: Take 7th Street North exit off I-10. West on Van Buren. Southwest corner of 1st Avenue and Van Buren.
Light Rail:
-From the east, take the westbound train to the Van Buren / Central Ave stop. Walk west on Van Buren one block to 1st Avenue. Cross both 1st Avenue and Van Buren.
-From the north/west, take the eastbound train to the Van Buren / 1st Ave stop. Cross both 1st Avenue and Van Buren. The court is on the Southwest corner of 1st Avenue and Van Buren.
Parking:
Public lots are available nearby (prices vary). The Court does not validate parking receipts.
Click here to see search results for parking near the Court.
Map:
Click here for a map.
Friday, December 24, 2010
"Do I Qualify for Chapter 7 Relief in Arizona?"
The question of whether you qualify for a Chapter 7 Bankruptcy is remarkably important, because if you don't pass the Means Test, you could be stuck in a Chapter 13 Bankruptcy, making large payments every month to a bankruptcy trustee, for five long years!
Now, there are some exceptions to the Means Test, and there are some sophisticated approaches to calculating the Means Test in Arizona, so if you don't pass the first cut at the ball, with the Median Income Calculator, and you don't pass the next go-round, which is the Means Test Calculator itself, DON'T PANIC!
At least, not yet. Panic is premature until you've talked to an experienced Arizona Bankruptcy Attorney, preferably Martindale AV Rated, AVVO 10, Board Certified in Bankruptcy Law, and they've gone through six months of your pay stubs and crunched numbers to see if they can find a way that you can qualify!
Now, there are some exceptions to the Means Test, and there are some sophisticated approaches to calculating the Means Test in Arizona, so if you don't pass the first cut at the ball, with the Median Income Calculator, and you don't pass the next go-round, which is the Means Test Calculator itself, DON'T PANIC!
At least, not yet. Panic is premature until you've talked to an experienced Arizona Bankruptcy Attorney, preferably Martindale AV Rated, AVVO 10, Board Certified in Bankruptcy Law, and they've gone through six months of your pay stubs and crunched numbers to see if they can find a way that you can qualify!
How To Organize Your Information Before You Visit with An Arizona Bankruptcy Lawyer
I've been a bankruptcy lawyer in Arizona for about thirty years, and one of the things that I've noticed over the years is that intelligent people get so overwhelmed before they come to visit with me is that they never thought about organizing their information so I could reach conclusion and help them.
So often, they would need to come back to visit multiple times before I could determine whether I could help them, which I have to do before I accept them as an Arizona Bankruptcy Client, after all!
So I built some homework, which is designed so that a potential bankruptcy debtor can organize information prior to visiting with a bankruptcy lawyer in Arizona, whether they live in Mesa, Tempe, Chandler, Phoenix, Scottsdale, Casa Grande or Paradise Valley.
So here is much of my post about organizing your information (really, it's bankruptcy homework, but the good news is that it's not Remedial Bankruptcy Homework!).
So look at it, and enjoy!
-----------------------------------------------------------------------------------------------------
Why do I want you to do homework BEFORE you come to see me for the first time? Because then our meeting may be productive! If you don't do the homework, I can sympathize with you, but I can't tell whether I can help you very much. Kinda like a doctor and the x-rays. You can't set the arm without the x-rays, you know?
Seriously. Want help? Do the homework!
And as a quick preliminary issue, who am I and why should you retain me to help you? If you've already done extensive credential and experience and qualification and specialized training and certification and testimonial comparisons, ignore this issue. Many consumer bankruptcy clients don't care much about credentials, and go straight to the client reviews, but some business clients do care about Board Certification, AV rating, and so on. I would, but that's just me.
Then take a look at the top ten questions most often asked of this particular Arizona bankruptcy lawyer. Why? Well, because otherwise, you'll ask me those questions during our first half-hour meeting, and I'll know you didn't do your homework! And then it's time for the Cone of Shame!
Now, play "20 Questions with a Bankruptcy Lawyer". You can watch the video, or you can read through the text, but make sure you tell me if any issue here applies to you (note: this isn't what you print out for me; this is the part where you tell me during our talk if any of these issues apply to you!).
Next, subscribe to my bankruptcy blog (it's free, and you can unsubscribe any time you want); I want you to subscribe, because you may be a client for five years, and this is one way you can find out about changes in the law sooner than other people! You'll see a little subscribe box below. Do it now! You know you want to!
Next, make a written list of YOUR questions, so you can get the maximum benefit from your initial half-hour "getting to know you" visit with me (you may wind up talking to my brilliant young bankruptcy lawyer associate Nina the Unpronounceable if I'm in Court or jammed up, but that's only if you're lucky; I never hire anybody unless they're smarter than I am).
NOTE WELL: I have a pretty office next to the Biltmore Golf Course at the top of the rise. It's got a bunch of glass panels and low-hanging certificates, with matte paint that doesn't wash off very well. Putting it another way, it's not a child-proof office, so please make arrangements for a babysitter and don't bring your kids to my office. The last one kicked the heck out of the wall and every time I see the scars on the wall, I'm reminded what a cute little rascal he was!
NOTE BETTER: If you have a cold, stay home, and we'll do a phone conference!!
Go to my Google Place Page so you can find my office. It's right next door to the golf course at the Arizona Biltmore Resort, at the top of the rise, but every now and then some people seem to have trouble finding it.
If you prefer to watch videos to reading, here's my YouTube Channel with a buncha educational bankruptcy videos, and those will answer a bunch of specific questions you may have. And if you want to watch videos on my new bankruptcy video blog, go for it!
Finally, PRINT OUT THE FORM BELOW completely and bring it with you when you come to see me! The form below is for my office's analysis only, and is not the very long, semi-horrible form you'll be filling out so I can file a bankruptcy for you.
Thanks!
Joseph
POTENTIAL CLIENT INTAKE WORKSHEET
Name:____________________________________________
Street address: __________________________________________ City:_____________________
State:__________ Zip:__________________
(H) Phone:_______________ (W) Phone:_______________ (Cell ph.)_______________
Email:______________________________
Debts:(note that you must list all your debts on schedules: it's a crime to intentionally fail to do so!)
1. Secured:$ ____________(secured debts are like mortgages and car loans)
2. Unsecured:$__________ (these are like credit card debt, medical bills and personal loans)
3. Tax Debt:$___________(these probably will not be discharged, but you have to list 'em anyway!)
4. Student Loans:$_______(you won't get them discharged, but you must list them anyway!)
5. Child support or alimony: $_______(ditto; you'll keep both kinds of debt, but must list 'em)
6. Other Debts:$ _________(to be consistent, I'll tell you that you must list them!)
Real Estate (real estate is dirt; like a house, or a building, or a piece of land)
First Property
1. Home value:$_____________________(use Zillow.com to determine value; the trustee will!)
2. When purchased:________________
3. First mortgage: $_________ Monthly payment:$_______
4. Second mortgage: $_______ Monthly payment: $ ______
5. Trustee sale date (if any) :_______
6. Are you current on your house payments:_____
Additional Properties (same questions apply)(use another piece of paper if you need more room!)
Motor vehicles
Type of car/truck #1:__________________________________________________
Year Make Model Mileage
1. Monthly payment: $
2. Delinquency total: $___________
3. Current Value: $____________(use excellent condition, private party value on bluebook.com; the trustee will, so you need a preview of the trustee's starting number!)
4) Loan Payoff: $_____________
Type of car/truck #2:_________________________________________________________
Year Make Model Mileage
1. Monthly payment: $____________
2. Delinquency total: $___________
3) Current Value: $ _______________
3. Loan payoff: $________________
Additional Vehicles (same questions apply)
Income
1. Your annual gross income: $___________(gross; that's before deductions)
2. Spouse’s annual income: $_________(gross; that's before deductions)
3. Income from operation of a business: $_______
4. Unemployment benefits per month: $_________
5. Social Security per month $____________
6. Other income: $____________
7. Number of People Living in Your Home: ____Are They Dependents on Your Taxes?______
7. Do You Pass the Means Test? _____________ (use the Nolo Calculator, and don't panic if you fail!)
Business Ownership Issues:
Do you own a business:__________if you do, read this and then continue.
a. Name/Type of Business: ________
b. Type of Entity : ________
c. Total value of business assets: $________
d. Total business debt: $_________
e. Have you personally guaranteed business debt (if you're not sure, you probably did): _________
Litigation
Are you currently involved in a lawsuit: ________
a. Date Served: ____________________
b. Status of the case: ________________
c. Case number: ___________________
d. Caption of lawsuit:________________
e. Court: __________________________
General Considerations:
Have you used any of your credit cards within last 90 days? _______________
Have made any payments to relatives within the last year? _____________ Amount of payment: $_________ Date of payment: _______________
Have you ever filed bankruptcy before? ___________ If so, when? __________ What chapter? ___________
Have you lived in Arizona for a FULL two years? ____________
Is there anything special, extraordinary or unusual I should know before I decide whether I can help you (for instance, is there a warrent for your arrest for murder currently going the rounds of the Phoenix Police) ?__________________________________________________________
Make sure you look at the mandatory legal disclosures required by the 2005 Amendments; I wrote about those on the very first page of my blog, on the left hand side. Look to the left hand side of my big bankruptcy blog and scroll down! And remember: if I file a bankruptcy for you, you had better list all of your assets and debts on your schedules and lists, because if you don't, you could go to jail. No kidding.
----------------------------------------------------------------------------
HOW DO YOU HIRE ME?
And after we meet, IF AND ONLY IF YOU HAVE DONE YOUR HOMEWORK AND BROUGHT IT WITH YOU TO OUR FIRST HALF-HOUR MEETING, and if I believe I can help you, and if I think we are a moderately good fit for the one year to four years that you will be my bankruptcy client, the firm will email you a scary-looking five page retainer agreement. Then you decide if you want to retain me, or if somebody else wins your personal version of The Pepsi Challenge (tm).
And, yeah, I'd like to distill the retainer agreement down to a one-pager; and someday I will. But that'll probably have to wait until after this depression, when I have enough time to tinker with forms!
IF YOU'RE IN A HURRY TO GET STARTED, BRING YOUR CHECKBOOK AND LUCKY SIGNIN' PEN, AND WE'LL PRINT YOU A RETAINER AGREEMENT at our first interview, AT YOUR REQUEST. Normally, I just email it to clients after their first meetings with me, because I never want a client of mine to feel like they've been "closed" by a sales pitch.
Your choice.
If you retain me, by signing the retainer agreement and providing me with cashier's checks for the retainer and the filing fee (two separate cashiers checks, please), then you will get what we call "The Keys to the Kingdom", which is really a password so you can start filling in your information on our online system, as well as a suggestion as to pre- and post- consumer counseling services (remember that I can't file for you if you haven't taken the first time-wasting class, and you won't get a discharge if you don't take time-wasting class number 2, so take that the day after we file for you! And make sure you get the certificate to Heidi the Bankruptcy Angel so she can file it with the Court!).
Note that you are not a client for any purposes whatsoever until the office has received both the fully signed retainer agreement and the retainer and the separate check for the filing fee. You'll be paying for the time-wasting pre-and post- consumer credit counseling courses, which will run less than $50 or so.
And then (when your information is true, correct, and complete) you hit "send", and then you get in line with the clients ahead of you, and if AND ONLY IF you pass the means test, and after your forms pass muster with Heidi, and then with me or Nina, we will all agree on a day after you have spent your most recent paycheck with a debit card and that is reflected in your bank statement, and then and ONLY then we file your case electronically.
WHAT HAPPENS NEXT?
Well, if you asked that, you didn't do your homework! So got back to the top ten questions, and you'll learn the answer to that one!
And here's a hint; check out the timeline discussion at the end of the top ten questions list!
And I have a health and longevity blog, where I beg you to take vitamins, especially Vitamin C and D; read it if you want, but remember to check everything I suggest with a real doctor, and not get your medical advice from a bankruptcy lawyer with an office in Phoenix!
So often, they would need to come back to visit multiple times before I could determine whether I could help them, which I have to do before I accept them as an Arizona Bankruptcy Client, after all!
So I built some homework, which is designed so that a potential bankruptcy debtor can organize information prior to visiting with a bankruptcy lawyer in Arizona, whether they live in Mesa, Tempe, Chandler, Phoenix, Scottsdale, Casa Grande or Paradise Valley.
So here is much of my post about organizing your information (really, it's bankruptcy homework, but the good news is that it's not Remedial Bankruptcy Homework!).
So look at it, and enjoy!
-----------------------------------------------------------------------------------------------------
Why do I want you to do homework BEFORE you come to see me for the first time? Because then our meeting may be productive! If you don't do the homework, I can sympathize with you, but I can't tell whether I can help you very much. Kinda like a doctor and the x-rays. You can't set the arm without the x-rays, you know?
Seriously. Want help? Do the homework!
And as a quick preliminary issue, who am I and why should you retain me to help you? If you've already done extensive credential and experience and qualification and specialized training and certification and testimonial comparisons, ignore this issue. Many consumer bankruptcy clients don't care much about credentials, and go straight to the client reviews, but some business clients do care about Board Certification, AV rating, and so on. I would, but that's just me.
Then take a look at the top ten questions most often asked of this particular Arizona bankruptcy lawyer. Why? Well, because otherwise, you'll ask me those questions during our first half-hour meeting, and I'll know you didn't do your homework! And then it's time for the Cone of Shame!
Now, play "20 Questions with a Bankruptcy Lawyer". You can watch the video, or you can read through the text, but make sure you tell me if any issue here applies to you (note: this isn't what you print out for me; this is the part where you tell me during our talk if any of these issues apply to you!).
Next, subscribe to my bankruptcy blog (it's free, and you can unsubscribe any time you want); I want you to subscribe, because you may be a client for five years, and this is one way you can find out about changes in the law sooner than other people! You'll see a little subscribe box below. Do it now! You know you want to!
Next, make a written list of YOUR questions, so you can get the maximum benefit from your initial half-hour "getting to know you" visit with me (you may wind up talking to my brilliant young bankruptcy lawyer associate Nina the Unpronounceable if I'm in Court or jammed up, but that's only if you're lucky; I never hire anybody unless they're smarter than I am).
NOTE WELL: I have a pretty office next to the Biltmore Golf Course at the top of the rise. It's got a bunch of glass panels and low-hanging certificates, with matte paint that doesn't wash off very well. Putting it another way, it's not a child-proof office, so please make arrangements for a babysitter and don't bring your kids to my office. The last one kicked the heck out of the wall and every time I see the scars on the wall, I'm reminded what a cute little rascal he was!
NOTE BETTER: If you have a cold, stay home, and we'll do a phone conference!!
Go to my Google Place Page so you can find my office. It's right next door to the golf course at the Arizona Biltmore Resort, at the top of the rise, but every now and then some people seem to have trouble finding it.
If you prefer to watch videos to reading, here's my YouTube Channel with a buncha educational bankruptcy videos, and those will answer a bunch of specific questions you may have. And if you want to watch videos on my new bankruptcy video blog, go for it!
Finally, PRINT OUT THE FORM BELOW completely and bring it with you when you come to see me! The form below is for my office's analysis only, and is not the very long, semi-horrible form you'll be filling out so I can file a bankruptcy for you.
Thanks!
Joseph
POTENTIAL CLIENT INTAKE WORKSHEET
Name:____________________________________________
Street address: __________________________________________ City:_____________________
State:__________ Zip:__________________
(H) Phone:_______________ (W) Phone:_______________ (Cell ph.)_______________
Email:______________________________
Debts:(note that you must list all your debts on schedules: it's a crime to intentionally fail to do so!)
1. Secured:$ ____________(secured debts are like mortgages and car loans)
2. Unsecured:$__________ (these are like credit card debt, medical bills and personal loans)
3. Tax Debt:$___________(these probably will not be discharged, but you have to list 'em anyway!)
4. Student Loans:$_______(you won't get them discharged, but you must list them anyway!)
5. Child support or alimony: $_______(ditto; you'll keep both kinds of debt, but must list 'em)
6. Other Debts:$ _________(to be consistent, I'll tell you that you must list them!)
Real Estate (real estate is dirt; like a house, or a building, or a piece of land)
First Property
1. Home value:$_____________________(use Zillow.com to determine value; the trustee will!)
2. When purchased:________________
3. First mortgage: $_________ Monthly payment:$_______
4. Second mortgage: $_______ Monthly payment: $ ______
5. Trustee sale date (if any) :_______
6. Are you current on your house payments:_____
Additional Properties (same questions apply)(use another piece of paper if you need more room!)
Motor vehicles
Type of car/truck #1:__________________________________________________
Year Make Model Mileage
1. Monthly payment: $
2. Delinquency total: $___________
3. Current Value: $____________(use excellent condition, private party value on bluebook.com; the trustee will, so you need a preview of the trustee's starting number!)
4) Loan Payoff: $_____________
Type of car/truck #2:_________________________________________________________
Year Make Model Mileage
1. Monthly payment: $____________
2. Delinquency total: $___________
3) Current Value: $ _______________
3. Loan payoff: $________________
Additional Vehicles (same questions apply)
Income
1. Your annual gross income: $___________(gross; that's before deductions)
2. Spouse’s annual income: $_________(gross; that's before deductions)
3. Income from operation of a business: $_______
4. Unemployment benefits per month: $_________
5. Social Security per month $____________
6. Other income: $____________
7. Number of People Living in Your Home: ____Are They Dependents on Your Taxes?______
7. Do You Pass the Means Test? _____________ (use the Nolo Calculator, and don't panic if you fail!)
Business Ownership Issues:
Do you own a business:__________if you do, read this and then continue.
a. Name/Type of Business: ________
b. Type of Entity : ________
c. Total value of business assets: $________
d. Total business debt: $_________
e. Have you personally guaranteed business debt (if you're not sure, you probably did): _________
Litigation
Are you currently involved in a lawsuit: ________
a. Date Served: ____________________
b. Status of the case: ________________
c. Case number: ___________________
d. Caption of lawsuit:________________
e. Court: __________________________
General Considerations:
Have you used any of your credit cards within last 90 days? _______________
Have made any payments to relatives within the last year? _____________ Amount of payment: $_________ Date of payment: _______________
Have you ever filed bankruptcy before? ___________ If so, when? __________ What chapter? ___________
Have you lived in Arizona for a FULL two years? ____________
Is there anything special, extraordinary or unusual I should know before I decide whether I can help you (for instance, is there a warrent for your arrest for murder currently going the rounds of the Phoenix Police) ?__________________________________________________________
Make sure you look at the mandatory legal disclosures required by the 2005 Amendments; I wrote about those on the very first page of my blog, on the left hand side. Look to the left hand side of my big bankruptcy blog and scroll down! And remember: if I file a bankruptcy for you, you had better list all of your assets and debts on your schedules and lists, because if you don't, you could go to jail. No kidding.
----------------------------------------------------------------------------
HOW DO YOU HIRE ME?
And after we meet, IF AND ONLY IF YOU HAVE DONE YOUR HOMEWORK AND BROUGHT IT WITH YOU TO OUR FIRST HALF-HOUR MEETING, and if I believe I can help you, and if I think we are a moderately good fit for the one year to four years that you will be my bankruptcy client, the firm will email you a scary-looking five page retainer agreement. Then you decide if you want to retain me, or if somebody else wins your personal version of The Pepsi Challenge (tm).
And, yeah, I'd like to distill the retainer agreement down to a one-pager; and someday I will. But that'll probably have to wait until after this depression, when I have enough time to tinker with forms!
IF YOU'RE IN A HURRY TO GET STARTED, BRING YOUR CHECKBOOK AND LUCKY SIGNIN' PEN, AND WE'LL PRINT YOU A RETAINER AGREEMENT at our first interview, AT YOUR REQUEST. Normally, I just email it to clients after their first meetings with me, because I never want a client of mine to feel like they've been "closed" by a sales pitch.
Your choice.
If you retain me, by signing the retainer agreement and providing me with cashier's checks for the retainer and the filing fee (two separate cashiers checks, please), then you will get what we call "The Keys to the Kingdom", which is really a password so you can start filling in your information on our online system, as well as a suggestion as to pre- and post- consumer counseling services (remember that I can't file for you if you haven't taken the first time-wasting class, and you won't get a discharge if you don't take time-wasting class number 2, so take that the day after we file for you! And make sure you get the certificate to Heidi the Bankruptcy Angel so she can file it with the Court!).
Note that you are not a client for any purposes whatsoever until the office has received both the fully signed retainer agreement and the retainer and the separate check for the filing fee. You'll be paying for the time-wasting pre-and post- consumer credit counseling courses, which will run less than $50 or so.
And then (when your information is true, correct, and complete) you hit "send", and then you get in line with the clients ahead of you, and if AND ONLY IF you pass the means test, and after your forms pass muster with Heidi, and then with me or Nina, we will all agree on a day after you have spent your most recent paycheck with a debit card and that is reflected in your bank statement, and then and ONLY then we file your case electronically.
WHAT HAPPENS NEXT?
Well, if you asked that, you didn't do your homework! So got back to the top ten questions, and you'll learn the answer to that one!
And here's a hint; check out the timeline discussion at the end of the top ten questions list!
And I have a health and longevity blog, where I beg you to take vitamins, especially Vitamin C and D; read it if you want, but remember to check everything I suggest with a real doctor, and not get your medical advice from a bankruptcy lawyer with an office in Phoenix!
Minimize Your Suffering Through Bankruptcy
There's a lot of suffering in world, and a lot of it isn't a required class. Considering auditing Suffering 101.
A lot of the suffering is related to economic issues, and sometimes a bankruptcy is a good idea. Therefore, I'm reposting an entry from my Arizona Bankruptcy Attorney Blog here, just to get you to start thinking about how much nicer your life would be if you could afford some of the things you want in life, including the ability to contribute toward a retirement fund!
So enjoy!
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I get to see more human suffering than any other professional except an oncologist, and that makes me sad.
That's because much of the suffering that happens in conjunction with a bankruptcy is self-inflicted.
And that's because overwhelming debt is...you know, overwhelming!
Remember, if you get sued, don't do nothing, right? And that's because your situation becomes worse when a creditor gets a judgment against you; on the one hand, that creditor can garnish wages and bank accounts, and if he records the judgment in the county (usually Maricopa) in which you own real property, it becomes a judgment lien on your real property in that county.
Putting it another way, a judgment creditor gets a lien on your house! That's not good. It's not good partly because a properly perfected lien usually survives your Bankruptcy Discharge in Arizona (and everyplace else).
Now, there's all the difference in the world in a judgment that's taken against you by mistake, and a judgment taken against you by design.
The barrier to any number of middle and upper class folks who need to file a Chapter 7 Bankruptcy (merely very painful) as opposed to a Chapter 13 with FIVE YEARS of payments to a trustee (agonizing) is The Dreaded Means Test.
In some cases, it can actually be a good thing to let a judgment be taken against you, because a judgment creditor can garnish up to 25% of your NET income in Arizona, in most cases.
That 25% reduction MAY, IN SOME CASES, be the amount that permits a debtor to slide under the means test limbo bar. Note well: this is not a technique for the faint-hearted, nor for those represented by a bankruptcy mill or a bankruptcy beginner, or a casual bankruptcy lawyer who handles two cases a month. And if you're unrepresented, DO NOT CONSIDER this technique. You're simply not experienced enough in bankruptcy law and calculations to make it work properly. Sorry!
And bear in mind that if you use this technique, you must be prepared to cope with a possible judgment lien attached to your homestead, which may get scraped off in a mini-lawsuit in the Bankruptcy Court under some circumstances.
On the other hand, there are even more arcane ways to deal with lawsuits prior to filing a Chapter 7 Bankruptcy, and all of them are post-graduate techniques.
So BEFORE you go and visit with any bankruptcy attorney in Arizona, give that lawyer the Pepsi Challenge(tm): compare all of their credentials, experience, bar activities, board certifications, and client reviews, and endorsements from other lawyers.
You can probably do bankruptcy lawyer comparisons most easily on AVVO.com, but I'm not picky; just DO it! I don't get a commission if you use AVVO.
It makes me sad when I'm contacted by somebody who had a bankruptcy that could have gone well and that went sideways because the debtor did the lawyer version of The Pepsi Challenge(tm) after the fertilizer had hit the air circulation device in their case.
WHAT YOU NEED TO KNOW: before you go to see an Arizona Bankruptcy Lawyer in Phoenix, Scottsdale, Mesa, Glendale, Casa Grande, or anyplace else, put 'em through a head to head comparison on the internet, for credentials of all sorts, experience, peer review (an AV rating is best), and client reviews!
p.s. there's another reason that you want to let your fingers do the comparison on the Internet between bankruptcy lawyers; there are bankruptcy mills in town that use inhumanly hard sales techniques. And normal humans have a lot of trouble dealing with those, just the way it's hard to deal with hard sales at used car torture chambers.
And the reason I don't use sales closes is that if I "close" a client against her will, no matter how much I know I can help 'em, they may have "buyer's remorse", and I'm allergic to buyers remorse.
p.p.s. before you call me or email me to set up an appointment, you can educate the heck out of yourself on my Bankruptcy Homework Blog! That should let you know, step-by-step-by-step, exactly how your bankruptcy case will flow, how long it will take, how much I may charge (within a range, of course; a small business costs a little more), and how you can prepare before coming in to visit with me.
A lot of the suffering is related to economic issues, and sometimes a bankruptcy is a good idea. Therefore, I'm reposting an entry from my Arizona Bankruptcy Attorney Blog here, just to get you to start thinking about how much nicer your life would be if you could afford some of the things you want in life, including the ability to contribute toward a retirement fund!
So enjoy!
----------------------------------------------------------------------------------
I get to see more human suffering than any other professional except an oncologist, and that makes me sad.
That's because much of the suffering that happens in conjunction with a bankruptcy is self-inflicted.
And that's because overwhelming debt is...you know, overwhelming!
Remember, if you get sued, don't do nothing, right? And that's because your situation becomes worse when a creditor gets a judgment against you; on the one hand, that creditor can garnish wages and bank accounts, and if he records the judgment in the county (usually Maricopa) in which you own real property, it becomes a judgment lien on your real property in that county.
Putting it another way, a judgment creditor gets a lien on your house! That's not good. It's not good partly because a properly perfected lien usually survives your Bankruptcy Discharge in Arizona (and everyplace else).
Now, there's all the difference in the world in a judgment that's taken against you by mistake, and a judgment taken against you by design.
The barrier to any number of middle and upper class folks who need to file a Chapter 7 Bankruptcy (merely very painful) as opposed to a Chapter 13 with FIVE YEARS of payments to a trustee (agonizing) is The Dreaded Means Test.
In some cases, it can actually be a good thing to let a judgment be taken against you, because a judgment creditor can garnish up to 25% of your NET income in Arizona, in most cases.
That 25% reduction MAY, IN SOME CASES, be the amount that permits a debtor to slide under the means test limbo bar. Note well: this is not a technique for the faint-hearted, nor for those represented by a bankruptcy mill or a bankruptcy beginner, or a casual bankruptcy lawyer who handles two cases a month. And if you're unrepresented, DO NOT CONSIDER this technique. You're simply not experienced enough in bankruptcy law and calculations to make it work properly. Sorry!
And bear in mind that if you use this technique, you must be prepared to cope with a possible judgment lien attached to your homestead, which may get scraped off in a mini-lawsuit in the Bankruptcy Court under some circumstances.
On the other hand, there are even more arcane ways to deal with lawsuits prior to filing a Chapter 7 Bankruptcy, and all of them are post-graduate techniques.
So BEFORE you go and visit with any bankruptcy attorney in Arizona, give that lawyer the Pepsi Challenge(tm): compare all of their credentials, experience, bar activities, board certifications, and client reviews, and endorsements from other lawyers.
You can probably do bankruptcy lawyer comparisons most easily on AVVO.com, but I'm not picky; just DO it! I don't get a commission if you use AVVO.
It makes me sad when I'm contacted by somebody who had a bankruptcy that could have gone well and that went sideways because the debtor did the lawyer version of The Pepsi Challenge(tm) after the fertilizer had hit the air circulation device in their case.
WHAT YOU NEED TO KNOW: before you go to see an Arizona Bankruptcy Lawyer in Phoenix, Scottsdale, Mesa, Glendale, Casa Grande, or anyplace else, put 'em through a head to head comparison on the internet, for credentials of all sorts, experience, peer review (an AV rating is best), and client reviews!
p.s. there's another reason that you want to let your fingers do the comparison on the Internet between bankruptcy lawyers; there are bankruptcy mills in town that use inhumanly hard sales techniques. And normal humans have a lot of trouble dealing with those, just the way it's hard to deal with hard sales at used car torture chambers.
And the reason I don't use sales closes is that if I "close" a client against her will, no matter how much I know I can help 'em, they may have "buyer's remorse", and I'm allergic to buyers remorse.
p.p.s. before you call me or email me to set up an appointment, you can educate the heck out of yourself on my Bankruptcy Homework Blog! That should let you know, step-by-step-by-step, exactly how your bankruptcy case will flow, how long it will take, how much I may charge (within a range, of course; a small business costs a little more), and how you can prepare before coming in to visit with me.
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