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Declaring bankruptcy stops wage garnishments from creditors where they are in the process. However, you won’t necessarily get any of the money back that has already been taken from you through the garnishment. The idea is to stop a garnishment before your creditors take action against you. That is the best way to assure that you won’t lose any of your hard-earned money in a garnishment.
A bankruptcy filing will stop any future pay checks from being garnished. Any funds that had been taken prior to the filing of your bankruptcy petition will not be returned. Your bankruptcy trustee may be able to recoup any funds taken up to 90 days prior to your filing. However, those funds are considered those a preferential payment to a particular creditor. The bankruptcy trustee takes that money and uses it in your bankruptcy estate to be distributed evenly among all of your creditors.
However, sometimes a garnishment will continue to be taken after the filing of your bankruptcy petition if proper notification is not given and those funds are able to be returned. Seeking the assistance of our Mesa bankruptcy attorneys is the best way to assure that your wages aren’t garnished any further.
File Your Bankruptcy Prior to Your Payroll Cutoff
It is important to realize that your filing date must be before the end of your pay period, not your pay date. If your pay period ends before the date of your bankruptcy filing those funds will also be lost. Time is of the essence when contacting an experienced Mesa bankruptcy lawyer if you are wishing to stop your wages from being garnished.
Hiring an attorney can help make the process of stopping a garnishment run much more smoothly. Your Mesa garnishment attorney will notify both your payroll department and the creditor who is garnishing your wages regarding you declaring bankruptcy. The automatic stay of the bankruptcy starts as soon as you file and stops the wage garnishment.
It is also important to realize that there are many signs that a garnishment is pending. Prior to a garnishment being put in place; you will receive: First, a law suit Summons. Next, you will get a Notice of Default Judgment, and then finally, a Writ of Garnishment. Filing your bankruptcy proactively upon the receipt of the Summons can make sure that the garnishment never starts.
The experienced attorneys at My Arizona Lawyers can provide you with a clear deadline and target date to file to ensure your case is filed before a garnishment stops. It is important to call our Mesa bankruptcy attorneys and schedule your free consultation as soon as you are served with any legal paperwork. Our Mesa Bankruptcy Team are experienced in stopping wage garnishments and will work with you to help you keep as much of the monies you have worked so hard to earn.
Sears is likely to file Chapter 11 bankruptcy protection. The company plans to plow through the upcoming holiday season, but is leaning toward bankruptcy. The Chapter 11 filing would allow a plan to restructure, versus liquidating immediately.
Sears Holdings is the parent company of Sears and Kmart. According to a recent public records, it is still operating 506 Sears locations (360 Kmart stores).
It is likely that Sears will announce that it will file for bankruptcy, and if this does happen, the nation’s once largest retailer will need a reorganization plan. Because of competition such as Amazon and Walmart, Sears has been struggling as it tries to keep its retail business appealing to shoppers.
With a deadline to pay severe debt, all signs are pointing to Sears Holdings filing bankruptcy. Surrounding the financial troubles of the company are reports of preparations for filing. Typically, a company that files for bankruptcy negotiates a loan to remain in business while going through the bankruptcy process. Also reported was Sears’ management wanting to use the protection of Chapter 11, which uses a reorganization and restructuring plan (as opposed to Chapter 7, which liquidates and leads to closures).
In 2005, Sears and Kmart formed Sears Holdings and had 3,500 stores in the United States between them. Currently there are under 900 stores following a series of store closings. Sears has announced 46 store closings.
Some reports are calling a bankruptcy filing imminent. If the retailer can negotiate a deal with lenders, it may allow its 900 stores to stay open through the holidays. Some of the Sears stores, however, would have to close immediately (approximately 150 stores). Challenges still remain for the company, however, even if it remains in business over the holidays.
Unfortunately, retail businesses don’t have a great record for success after bankruptcy. Toys R Us, for example has been forced to liquidate after filing a Chapter 11. Sears does have some value in the Kenmore brand.
Getting a speeding ticket is nothing more than a nuisance in most cases. You pay the fine, maybe you consult with an attorney, and you go on about your business. But if you are having financial troubles, a speeding ticket or other traffic citation can be a major blow. You may be struggling to figure out how you’re going to pay your mortgage this month, so a ticket that carries a fine and potential attorney fees can throw a major wrench into your finances.
When things are getting this bad, it might be time to consider filing for bankruptcy. Depending on what type of bankruptcy you file, you might be able to get your unsecured debts discharged (eliminated), or you might be able to negotiate a repayment plan that makes your monthly expenses more manageable.
Not all debts are discharged in a bankruptcy filing. Some people have questions about things like tax debts or student loans. Others are particularly interested in court fines and penalties. Here’s what you need to know:
Traffic fines are the most common government fines that the average person will get. You can get fines for speeding, parking in the wrong spot, driving with a broken headlight, and other minor infractions. Of course, you can also be fined for more serious infractions, such as driving under the influence or reckless driving.
Unfortunately, traffic fines cannot be discharged in a Chapter 7 bankruptcy. You will have to pay these no matter what your financial situation is.
Government Fines and Penalties
There are many other situations in which you might have to pay a government fine or penalty. You might be fined paying music at your party a little too late. Or you might get a fine if your dog gets out of the fence and is caught running around the neighborhood.
Again, any fines or penalties you owe to a court or other government entity cannot be discharged in a bankruptcy filing. You will be left with these bills, no matter what else happens in your bankruptcy.
How Bankruptcy Can Help with Fines
Though you can’t discharge court or government fines or penalties in a bankruptcy filing, there are other ways that filing for bankruptcy can help with these expenses.
If you file for Chapter 7 bankruptcy, you can free yourself from excessive debts, such as credit cards with high balances and huge medical bills. When you no longer have to pay off those balances, you will have a lot more money each month, and that should give you the means to pay off your court fines and penalties.
If you file for Chapter 13 bankruptcy, you will have a debt repayment plan that will make it easier for you to pay each month. You will have one monthly payment in an amount that is manageable for your finances. In many scenarios, it is possible to include some court fines and penalties in your Chapter 13 repayment plan.
Working with an Attorney
A good attorney can help you fight charges that result in court fines and penalties. Though you might feel like you can’t afford the legal help, hiring an attorney can actually save you money in the long run. Depending on the circumstances of your case, your attorney might be able to get the charges dismissed and the fines dropped. Your attorney might also keep charges off your record, which can help with things like keeping your car insurance low, ensuring that you are able to get a job, and ensuring that you are able to get better credit.
An experienced bankruptcy attorney will help you understand your financial options and what the best debt-relief plan might be for you. Mesa Bankruptcy Lawyers can help you understand how bankruptcy can help you, and My AZ Lawyers can help you with things like criminal charges, traffic violations, DUI cases, and personal injury claims, among other legal matters. Contact My AZ Lawyers to talk about the fines and penalties you are facing and to explore your legal options for evading the charges or minimizing the fines. Our attorneys will do everything they can to help you avoid penalties and to get back on firm financial footing.
Millions of Americans suffer from it. No one wants to be in it. However, fact of the matter is more Americans are in debt than the number who are debt free. Being in debt can be a stressful experience and is no way to start off your new year.
No matter what happens in your life, if you signed on the dotted line for a loan or financial obligation, you are going to have to pay it back; regardless if you have a life altering experience like: losing a job, getting into an accident, getting divorced, dealing with medical expense, or even if you have increased expenses due to having a child. The best thing that you can do is make plans to be financially stable in case your circumstances change unexpectedly.
During the holidays a lot of people facing debt are guilty of an unintended consequence of too much holiday spending. Too many presents and too much Christmas giving often leave people in unstable financial situations going into the new year. So if you’re ready to put the Christmas cheer and overspending behind you and want to get on a path to financial freedom, it’s important to have a plan of attack.
Here’s are a few pointers on how to get yourself debt free:
Stop borrowing money.
This seems simple but what that means is that you have to stop using debt to fund your lifestyle. This means no more using credit cards, no more financing furniture, no more brand new cars or car leases that you can’t afford. By not adding to your debt it will allow you to focus solely on the debt that you have currently.
Create a budget.
Organize a spreadsheet on which you track all of your income, expenses, and debts. To pay off your debt, your income MUST exceed your expenses. If it does not, you will have to cut more expenses or work more to increase your income.
Look at your budget and figure out where you can cut expenses so you can have more money available to put towards paying off your current debts.
This can be difficult to do, but it is a necessary part of the process.
Track Your Spending and NO Unnecessary Purchases
A tactic that will help is to carefully track purchases and eliminate any careless “accidental” spending. Going to the mall? 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.
Try to pay off your debts with the higher interest rates first.
Pay off your debts with the higher interest rates. Your debts with higher interest rates will always be unsecured debts like credit cards, payday loans, and unsecured personal loans. It is important to remember, the higher the interest rate, the faster these debts will grow. Pay off your highest interest debts first to minimize the total of what you will be paying off.
Spend Any Extra Money You Have… On Your Debt
In order to get yourself out of debt you will need to take any extra money you hadn’t factored in your budget and put it towards your debt. Examples of money you hadn’t factored in would include: a tax refund, selling a car or a possession, an inheritance, winning a pool or a bet…etc. The more money you can put towards your debt, the faster it will disappear and the sooner you will be debt free.
The debt you have doesn’t have to be forever, with a little discipline and hard work you can make it go away. Use the helpful ideas we have included, develop your financial game plan, and start your journey today towards being free of debt.
These are just a few of the steps that you can take to become debt free. There are organizations and resources available that can help you achieve your financial resolution. The debt relief experts at My AZ Lawyers are a great place to start. Contact us today to speak to a professional debt relief attorney in Mesa.
Filing for bankruptcy in the state of Arizona is messy. The end of the process seems to be nowhere near. Your Mesa bankruptcy lawyer becomes part of your life for the next few months, or years, depending how severe the case might be. Then, during court or your attorney mentions your case was discharge, the end is now right in front of you. Little do you know, that a discharge is only the beginning of the end. When one hears a legal case was discharge, that person believes that the case was dismiss, let go, over or close. That is incorrect. There is a difference between between a discharge and a case closure. My Arizona Lawyers will explain and simplify what the distinctions are.
A Discharge Bankruptcy Case
What is a discharge in bankruptcy? The following is an explanation from the United States Courts’ website:
“A bankruptcy discharge releases the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer legally required to pay any debts that are discharged. The discharge is a permanent order prohibiting the creditors of the debtor from taking any form of collection action on discharged debts, including legal action and communications with the debtor, such as telephone calls, letters, and personal contacts.
Although a debtor is not personally liable for discharged debts, a valid lien (i.e., a charge upon specific property to secure payment of a debt) that has not been avoided (i.e., made unenforceable) in the bankruptcy case will remain after the bankruptcy case. Therefore, a secured creditor may enforce the lien to recover the property secured by the lien.”
We believe that the explanation above is clear, but we will break it up for you. Basically, a discharge declares that the debtor is not legally required to pay any debts that were discharge in court or through an attorney. Also,you will not be fully relief you from all your debts. However, the debts that were discharge, the creditors will stop taking any form of collection action on the discharge debts. That means no more phone calls or letters from the creditors. The discharge only focuses on debts, not a bankruptcy trustee. You need to have that very clear. A bankruptcy trustee will still be sending you a demand letters. Talk with your bankruptcy lawyer in Mesa, and learn about your best options on how to get that trustee situated before the case closure.
Bankruptcy Case Closure
A case closure simply means that the court’s involvement with the case is done. The court’s involvement is typically not longer needed after all applicable deadlines for objections have passed and the case trustee has submitted a report indicating his work is complete. As the debtor, you need to understand that the discharge will not get rid of the trustee. You will be required to address with all the requests from the trustee until the case closure. Basically, the purpose of a bankruptcy case closure is to declare that you, as a debtor, have met the request that the trustee ask for. Have constant communication with your bankruptcy attorney in Mesa to concluded with a case closure as soon as possible.
If you believe you need to claim bankruptcy in the state of Arizona, you need the guidance of a bankruptcy lawyer from a reputable Mesa bankruptcy law firm. The bankruptcy laws are similar and yet distinct in every state. This is one of the reasons why you need an attorney to guide through the process in the state of Arizona. Again, claiming bankruptcy is messy and have negative effects on your credit report. If you want the case to end in the best case scenario, contacting a bankruptcy lawyer is that best form of action.
The attorneys at My Arizona Lawyers have the knowledge and expertise to help with your case. Each bankruptcy lawyer at My Arizona Lawyers have the experience in helping clients get debt relief. That can be through a Chapter 7 or Chapter 13 filing, based on the case. What are you waiting for? Call us at 480-833-8000, and we will help you reclaim your finances.
Mesa Bankruptcy Lawyers
4065 E University Dr #500
Mesa, AZ 85205
Filing for bankruptcy can be tricky, and even worse can be the consequences that come with it. If you are looking to file for bankruptcy with help from a Mesa bankruptcy attorney, you probably, no doubt, have a lot of questions that can’t rightfully be answered as sensitively as they should be. Before you take this step in trying to reclaim your financial security, you should make sure you have all of the facts first. Talk to your Mesa bankruptcy lawyer and get every detail you can before they help you sort out your financial troubles. Here are a few basic things you need to know before you do this.
The benefit to filing for bankruptcy is that once you do it, you will have no more debt. Unfortunately, this does not mean that you can spend exorbitant amounts of money. A lot of the times, the first thing that new bankruptcy victims want to do is to make a huge purchase like a house or a car. If you want to buy a house, a lot of lenders will want you to put down at least a 20% down payment. This may seem like a lot of money, but it is more secure for them to ask for this, especially when lending to someone who has just filed for bankruptcy. A good way to save up for this is to make sure that you cut your unnecessary expenses. Dining out, cell phones, cable charges, and excess spending. The larger the down payment, the more likely it is that you will get a better financing deal with a lender.
Another negative side effect of filing for bankruptcy in Mesa is that it leaves your credit in ruins. This is no secret. Having bad credit can bar you from making larger purchases that you might need to make in the future. Once you file for bankruptcy, you should automatically start rebuilding your credit so that you can eventually make those big purchases again. Your first step in doing this is to make sure you pay your debts as soon as possible. If you do this, your creditors will report to the credit bureaus that you have made your payments in a timely manner. If you owe money on your student loans, pay those in a timely manner. If you’ve purchased a car, make sure those are on time. Reaffirming your car loan if you are bankrupt will help restore your credit, and this will also be reported to the credit bureaus. But you should always make sure that it will be beneficial to you, because sometimes reaffirming your car loan can also be detrimental.
Sometimes credit lenders can be dishonest, so make sure to check your credit reports as frequently as possible to be absolutely positive that they are reporting your payments. If they aren’t, contact an Arizona bankruptcy lawyer to file a dispute and show proof of your payments. If you have reaffirmed your car after the bankruptcy instead of during the bankruptcy, this could be the result. In addition, if you get a credit card after you have filed for bankruptcy, make sure that you pay it off entirely within a two or three month period. This will get you much further in the endeavor of trying to reestablish your credit and make sure your credit score is increasing periodically.
Although it may not be easy, and you must be careful at all times, buying a home after filing for an Arizona bankruptcy is entirely possible. You have to be vigilant and make sure that all of your finances are in order. You should always keep in mind the troubles you went through before and during the bankruptcy. This is the only way that you can really avoid doing it again. You also need to be patient. You may think that once you file for bankruptcy, your troubles are over, but in order to prevent it from happening again, you can’t go back to your frivolous ways. Save your money, take time to gather yourself and your funds, and soon you will be perfectly capable of buying a home once again.
Filing for an Arizona bankruptcy with a professional bankruptcy lawyer is as easy as calling My AZ Lawyers. With our friendly experts and our caring touch, you can have your bankruptcy filed and taken care of in a timely manner. Get your life back on track as well as your finances and make sure to schedule a free consultation with Mesa Bankruptcy Lawyers.
Mesa Bankruptcy Lawyers
4065 E University Dr #500
Mesa, AZ 85205
Most people see bankruptcy as a last resort. They have tried to make good on their debts, but they have fallen in over their heads, and they just can’t make it work. So they take advantage of this debt relief option to get a fresh start.
No one sets out to get into financial trouble, but bad things happen to even the best of us. All the financial planning and wise spending in the world can’t dig you out of some holes. So unfortunately, you may find yourself in the position of needing to file for bankruptcy a second time — or if you’re Donald Trump, multiple times.
Arizona law puts a limit on when you can file for bankruptcy after you have filed in the past. It is always best that you consult with an experienced Mesa bankruptcy lawyer to determine how the laws apply to your circumstances if you are ready to file for bankruptcy. However, here are some basic guidelines to let you know what you might be up against:
Chapter 7 after a Chapter 7
Chapter 7 bankruptcy is the type of bankruptcy that most people think of because it gives you the “clean slate” from credit cards and other unsecured debt. But you have to meet strict requirements to qualify for this chapter of bankruptcy. You will always have to wait the longest amount of time between filings if you want to file for Chapter 7 again.
You must wait eight years from the date you first filed for Chapter 7 bankruptcy in order to file again for the same kind of bankruptcy. That cuts down on the time a tad since you don’t have to wait eight years from when the first bankruptcy was finalized — and these matters can take several months.
Chapter 13 after a Chapter 7
If you need debt relief much faster after filing for Chapter 7 bankruptcy, you might consider looking at Chapter 13. The time to file is cut in half — just four years after the date you file for Chapter 7.
You won’t be able to discharge your unsecured debts, but you will be able to get your debts under control by entering into a negotiated repayment plan. Your bankruptcy attorney in Mesa will help you get a repayment plan that better reflects your current financial situation, which may include lower interest rates, lower monthly payments or lower overall repayment amount. After just three to five years, you will be free of your current debt.
Chapter 7 after a Chapter 13
In most cases, you will have six years from the date you filed for Chapter 13 bankruptcy in which to file Chapter 7. There are some exceptions.
You may be able to file for Chapter 7 bankruptcy sooner if you have already paid 100 percent of the unsecured debt or you have paid 70 percent of unsecured debts and you made your best efforts to do so. In other words, you may have been working diligently to pay off your debts under the proposed repayment plan, but you may have faced further hardship, such as losing your job or becoming ill. You may then be able to file for Chapter 7 to have your remaining unsecured debts discharged, plus any new unsecured debt you acquired in that time period.
Chapter 13 after a Chapter 13
The shortest waiting time to file for bankruptcy will be if you are looking at a Chapter 13 after you have already filed for Chapter 13. You will be able to re-file after only two years from the date of your initial filing. Since most repayment plans are for three to five years, chances are good that you will still be under a Chapter 13 restructuring when you are permitted to file again.
This is good news since it allows you to reevaluate your debt situation if your repayment plan is not providing the financial relief you need. Your Mesa bankruptcy lawyer may be able to incorporate the debts from the previous plan into a new plan with new debts that helps to lower your interest rates and overall costs.
As always, you will need to work with an experienced attorney who can help you understand your options before you make a decision. Mesa Bankruptcy Lawyers is ready to analyze your financial information and give you tailored advice about the best bankruptcy or debt relief option for you. Call us today if you are considering filing for bankruptcy, even if you have filed in the past.
Mesa has seen a better economy in recent years, and it looks like the need to hire a debt relief lawyer in Mesa is changing. A better economy leads to more successful businesses and less debt-ridden people. The need to file for bankruptcy in Mesa due to excessive debt is really lowering. But what exactly is bankruptcy, and how does the local economy affect how we accumulate debt? Let’s look at some definitions to understand the process better.
Understanding what bankruptcy is
Bankruptcy is a legal process in which a business or person can wipe clean their debts. This is possible by proving that the entity does not have the assets or consistent income to pay off a looming debt or debts. In order to file for bankruptcy successfully, the person or business must prove the amount of assets and money they have and show that the debts that they have greatly outweigh those assets. Should they be successful, the court will absolve the entity of all or part of their debts. This comes at a price, though. Bankruptcy stays on your credit score for up to ten years and greatly affects your ability to get a credit score based loan. This can be detrimental for businesses that successfully file for bankruptcy. On one hand, their serious debts are absolved and they do not need to pay them back. On the other hand, loans and investments often keep a business going. If a business is already in debt, it is likely because their business has been unsuccessful in making much money. When that business files for bankruptcy, they will probably not be able to get additional loans to keep the business going. And so, the business will often have to be sold to someone else or completely close down permanently.
Mesa, Arizona is changing for the better economically
Low interest rates and better jobs are helping Mesa consumers and businesses stay debt free, or at the very least able to manage their debt without the need for a bankruptcy lawyer in Mesa. However, Mesa is far from perfect. There are some weak points in Mesa’s economy that have not been fixed.
Over the past five years, people have been filing for bankruptcy less and less. However, while middle class citizens are getting a brunt of this benefit, lower class families are struggling consistently.
The country is experiencing a dip in bankruptcy filings
Nationally, consumers are managing their debt better. Less than three percent of credit card accounts in early 2016 were a month or more overdue. This debt statistic was down over two and a half percent from late last year’s statistic of credit card debt. Some bankers are claiming that because more people have found employment, wages are seeing an increased, and home values have also been increased, people are turning to accumulating debt less and less than before.
The low interest rates are really helping too. Household monthly debt payments have dropped to ten percent this year. This is a welcomed dip from 2007, when household monthly debt payments were at nearly thirteen and a half percent. The debt burden has been at or under ten percent very rarely since the eighties, making this a great economical time. Households also hold approximately seven dollars in assets for every dollar they have in debt.
A United States recession will not be happening anytime soon
Global strategists are happy to report that there are no signs of a recession happening soon. The economy is growing, although at a slow pace. However, borrowing trends are appearing to rise at a rate higher than household incomes can handle. Most of this ties into the student loan crisis as well as increased auto loan debts this year. This trend may be something to be concerned about in the future, although these loan categories are modest. Sixty seven percent of all household debt in the United States is from mortgages, while nine percent accounts for student loans and less than seven percent account for auto loan debt. Hopefully, we can maintain our country’s current pleasant economic state and continue growing.
I need to file for bankruptcy and need a good Mesa, Arizona bankruptcy lawyer.
Luckily, My AZ Lawyers is here to help. We are an Arizona-based law firm that boasts a talented team of experienced, trained, and niche bankruptcy lawyers that will help you file for bankruptcy with detail and accuracy to avoid future hiccups and possible fraud chargers. Give us a call today to learn more about how we can help you file for bankruptcy with accuracy.
HOW A CHAPTER 13 BANKRUPTCY WORKS
For individuals with regular income, Chapter 13 is a consolidation and repayment form of bankruptcy. By providing protection from your creditors, filing Chapter 13 allows you to keep property and repay creditors via a manageable payment plan. Based on the amount of your debts, income and living expenses, an attorney at My AZ Lawyers will help you establish a repayment plan. The amount of repayment is set and paid to a Chapter 13 Trustee, who in turn distributes the money to your creditors. Chapter 13 is an affordable way to retain property and repay creditors for those individuals who have regular income.
TAKE CONTROL OF YOUR FINANCES
Chapter 13 Bankruptcy Lawyers in Mesa, Arizona
A chapter 13 bankruptcy is available for individuals or consumers and not businesses (unless the individual is a sole proprietor, thus qualifying). Generally, an individual can retain all personal property in a Chapter 13 filing as long as the Bankruptcy Court approves the proposed repayment plan. The sooner the case is filed, the better, in order to protect your valuable assets and accustomed lifestyle. It is best to schedule an appointment with a [cryout-button-dark url=”#”]MY AZ LAWYERS attorney[/cryout-button-dark] to discuss the plan you need to submit.
MESA BANKRUPTCY ATTORNEYS HELP CLIENTS IN ARIZONA FIND RELIEF FROM DEBT
Consolidate your debts and protect your property
- Stop harassing creditor phone calls
- Prevent your home from going into foreclosure
- Protect your car from repossession
- Stop wage garnishments
- Stop bank account levies
- Prevent lawsuits.
- Possibly eliminate debt
CHAPTER 13 BANKRUPTCY DEFINED
Payment and retention of a home usually is the top priority when filing and planning a Chapter 13 bankruptcy. Sometimes referred to as a “home-saver” bankruptcy, a Chapter 13 allows you to combine your debts (secured and unsecured), devise a repayment plan, and repay some or all of your debt while protecting you from liquidation or creditor harassment. In one monthly, reasonable payment you are able to pay on the debt.
CHAPTER 13 BANKRUPTCY TIME LINE AND PROCESS
From filing to discharge, typically a Chapter 13 could last 32 to 60 months. Your Arizona bankruptcy attorney at My AZ Lawyers will be better able to assess the length of the case based upon your personal situation and their past experiences filing Chapter 13. In terms of the plan, there are factors that determine your time line: amount of payment, income guidelines, and disposable income all are taken into consideration.
- Contact My AZ Lawyers to schedule your [cryout-button-dark url=”#”]FREE CONSULTATION[/cryout-button-dark] with an experienced bankruptcy law attorney. (480)833-80002.
- Prepare the appropriate paperwork and fill out the needed forms. (If married, spouse fills out forms as well). Your attorney will instruct you as to which forms you need and how to correctly prepare them.
- Meet with My AZ Lawyers to review your paperwork and assess your financial situation and determine if a Chapter 13 bankruptcy is in your best interest. Your Mesa bankruptcy attorney will give you advice as to what your best options are for you in order to be debt-free.
- Complete credit counseling course. Before filing Chapter 13, you are required to complete a session on credit counseling.
- Approximately a month after filing your case, you and your attorney meet with creditors at a hearing called the Meeting of Creditors. A Chapter Trustee reviews your case at this hearing.
- A bankruptcy Judge approves your payment plan at a Confirmation Hearing.
- A second credit counseling course must be completed before receiving discharge papers.
- An order of discharge from the Bankruptcy Court is issued upon completion of your repayment plan and all met requirements of Chapter 13 bankruptcy law.
MY AZ LAWYERS OFFERS AFFORDABLE LEGAL REPRESENTATION FOR ARIZONA
One key benefit to the Chapter 13 filing with a Mesa bankruptcy law office, is that the unsecured debt is addressed interest free. There is no outrageous interest rates on credit cards as you pay your debt. Chapter 13 is a good option for some individuals who do not qualify for chapter 7 bankruptcy but still want to achieve a debt-free future.
- Child or Spousal support
- Criminal fines or penalties
- Debts incurred through fraud
- Student loans
- Debt due to property settlement in a divorce
- Some kinds of taxes including real estate and income tax (these may be addressed in the payment plan, just not eliminated)
- Debt from property damage or personal injury done willfully or maliciously
ADVANTAGES TO FILING CHAPTER 13 BANKRUPTCY
- Prevents mortgage default
- NO INTEREST on credit card and finance company debt
- NO INTEREST on tax debt or penalties
- Possible elimination of a second mortgage lien debt
- Reduced interest rates on secured loans
- My AZ Lawyers are experienced in filing Chapter 13 bankruptcies and can help you take advantage of this type of debt relief.
WAGE GARNISHMENT IN ARIZONA
A wage garnishment is an order from a government agency or a court that requires your employer to withhold a certain amount of money from your paycheck. The order is sent to your employer, they garnish your wages, and the money is sent to the creditor to whom you owe debt.
Arizona law sets legal limits on how much of your paycheck can be garnished. These laws offer protection for your wages; creditors can only take nonexempt wages and they are limited to how much they can take. The experienced Arizona bankruptcy law attorneys at [cryout-button-dark url=”#”]My AZ Lawyers[/cryout-button-dark] can give your more information about what types of creditors can take more than others, and to tell you how to stop a wage garnishment.
MY AZ LAWYERS WILL PROTECT YOUR RIGHTS IF YOU HAVE BEEN SUED AND ARE FACING A WAGE GARNISHMENT
To get a judgement, a creditor must sue you, then serve you with a copy of the lawsuit, which a judge signing off on exactly how much you owe. Also, the creditor must file an application for a Writ of Garnishment. Once the court grants this, they will provide a copy to your employer who then is required to start withholding a given amount from your check.
You do have the opportunity and right to object the order, and to ask the court to lower the amount taken out.
Creditors cannot garnish your wages unless they obtain a court judgement sating that you owe them money. There are exceptions to this, however: no judgement is needed for:
- unpaid income taxes
- defaulted student loans
- child support arrears
- court ordered child support
WAGE GARNISHMENT LIMITATIONS IN ARIZONA
The idea behind limiting the amount that can be taken from your paycheck in order to pay back creditors is that you should have enough left for living expenses. There is a limit placed on this by Federal law. Arizona follows the same rules as Federal law, so federal law governs in Arizona:
Creditors can only take the lesser of the following: 25% of your weekly earnings (non-exempt)
OR the amount of non-exempt weekly earnings that exceeds 30 times the federal minimum wage.
Wages left after you employer makes deductions required by law are “disposable earnings.” Call My AZ Lawyers for a [cryout-button-dark url=”#”]FREE CONSULTATION[/cryout-button-dark] and discuss which income is exempt, specifically in Arizona.
EXAMPLE WAGE GARNISHMENTS
Ernie owes money to a creditor, except Ernie’s only income is what he gets from Social Security Disability. Even if the lender has a court order / judgement against Ernie, the credit may not garnish this type of earnings because these earnings are exempt.
Another example of wage garnishment: Sally has a judgement against her for debt owed to a creditor. Sally has a job and makes $750 / week (after taxes) and receives $250 per week in child support from her ex. The creditor cannot take from the child support income, but may garnish 25% of the $750 ($187.50). 30 times the minimum wage ($217.50) is $532.50 less than what she earns per week. Remember, it is $one OR $another, $187.50 is less than $532.50, the creditor may only garnish $187.50 from Sally’s paycheck.
WAGE GARNISHMENTS WITHOUT NEEDING A COURT ORDER
- Child support
- Student loans
- Unpaid taxes
STOPPING WAGE GARNISHMENTS
If you receive a notice of a wage garnishment from your employer, you need to contact My AZ Lawyers immediately. You can do immediate damage control by discussing your matter with an experienced bankruptcy attorney.
It is not only a frustrating and embarrassing situation to have your HR department and your boss know about your financial difficulties, but you will also lose out on your wages. If excessive debt has come to the point of a court order wage garnishment, [cryout-button-dark url=”#”]filing for bankruptcy[/cryout-button-dark] can stop this.
As soon as a bankruptcy case is filed, an Automatic Stay is issued. This is an order that stops all collections from you: wage garnishments, demand letters, phone calls, and lawsuits. In this way, bankruptcy can help provide you with a fresh start by helping you to become debt free.
Schedule an appointment to talk to an attorney at My AZ Lawyers if you are sued and are in jeopardy of a wage garnishment.