All items from Arizona Bankruptcy Lawyer Bankruptcy and Credit

Nobody looks forward to filing bankruptcy. Most would say there is never a good time to need to file bankruptcy. Some times are better than others.  A better time to file the bankruptcy is after you receive the refund.
Tax Refunds are not safe in Arizona Bankruptcy
A tax refund owed to you is not protected when you file bankruptcy. The bankruptcy trustee will require that you give him the check. You run the risk of losing the benefit of filing the bankruptcy if you do not cooperate in giving up the refund check.
There is an easy way around this.
The key element is whether or not the IRS owes you the refund when you file the bankruptcy. If you have not received it yet, it is owed. The trustee then has a right to take it from you once you receive it.
So long as it is practical for you to delay filing your bankruptcy until after you have received the tax refund, it won’t be owed to you when you file your case. The trustee cannot require that you hand over that money.

Common Misconceptions about Credit After Bankruptcy
Rebuilding credit after bankruptcy is one of the biggest fears that my clients have. There is so much misinformation about bankruptcy and credit that most of these fears are not realistic.  Some people believe that filing bankruptcy will mean that they will never be able to get credit again.  Others are convinced that they will not be able to get credit for at least 7 years–how long they think the bankruptcy will be on their credit report. Many don’t care. They know their credit has already “hit bottom” and the bankruptcy won’t make any difference.

Worried what people will think if you file bankruptcy?
Sally pulls up to the red light, blinking furiously to fight back the flood of tears that threaten to overwhelm her. She’s just left her lawyer’s office and he has advised her that it is time to file for bankruptcy. Until today she had never spoken the word out loud for fear of what it may do to her reputation. As a recently divorced single mom, she has prided herself on being self-sufficient and savvy. “How did this happen to me?” As the light turns green her thoughts switch to her family, her two beautiful twin boys who lover their new dog they rightly named Oreo. “How will I explain to my kids that Oreo will have to go to a new home?” And then there is Mike, her ex-husband, who has remained as a co-signor on the mortgage for the home she lives in with her sons. And then there are her parents, who will have unending questions. “What do I say to them? How do I explain that this is not the end of me?”

If you have run into financial problems and are unable to pay credit card payments you probably expect to hear from the bank. What you don’t expect is to be sued by a company that you never heard of.  It is probably a debt buyer.  This is becoming  common.
Companies known as debt buyers routinely purchased accounts from major lenders and credit card companies. They buy these accounts at significant discounts and make substantial profits attempting to collect the full amount.
When they are unable to successfully collect through the use of collection agents they file lawsuits. Most of these lawsuits are not defended and a  default judgment is signed by the court.
This is where the real trouble starts. Once a judgment is entered creditors can garnish your paycheck.  Arizona law allows a creditor to garnish 25% of your take-home pay.