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    Bankruptcy

    Why quick fixes to debt can add up to worse problems

    Briefcase full of moneyWhen debt becomes a serious obstacle to everyday life,  it can feel overwhelming, shameful, and hopeless.  And when fears about the future take over, people can become extremely susceptible to the temptations of easy solutions to their problems.  Like the quick fixes that TV commercials or online banners may offer.  Fast, easy, you can’t be turned away, and so on.  Peace of mind is offered along with money or plans to help ease your debt situation.

    Well, the expression “if it seems too good to be true, it isn’t” definitely applies here.  Because many of the easy fixes offered  have hidden costs and traps that can actually make a debtor’s situation much worse.  A recent article in U. S. News & World Report addresses some of these traps:

    • Borrowing money from a 401k account.  If you withdraw money earlier than what the law sets as appropriate, you will face IRS penalties.
    • Entering into a payday loan arrangement.  You will, of course, have to pay back the loan and the interest on the loan – and now you have incurred another debt!
    • Turning to a debt consolidation service.  These are companies that are not helping you out of the goodness of their hearts – their fees can be high and ongoing, as can interest rates.  And if you consolidate your debt by means of a home equity loan or line of credit, you could face losing your home to foreclosure if, again, you are not able to meet your financial obligations.

    However intimidating your debt problem might seem, there is no reason to think you have nowhere to turn for help.  Your first move should be to talk to an experienced, knowledgeable bankruptcy attorney at Zachary Law Group. We can answer your questions, and together, discuss your options regarding your debt situation, and which ones might provide the best outcome for you.  In fact, we offer a FREE 30-minute case evaluation.  So don’t lose hope about how to approach your debt situation.  Let us get to work on your behalf, to “Zach-It!” All you have to do is pick up the phone and contact us at 1-855-Zach-law.

    Non-dischargeable debts in Chapter 7 bankruptcy

    Person surrounded in billsFor some individuals, filing for Chapter 7 bankruptcy can appear be the only way to end overwhelming financial responsibilities.  However, even within the legal protections that bankruptcy can bestow, there are many types of debts.  Some of these are referred to as “non-dischargeable”, that is, bankruptcy does not make them go away.  The debtor must still pay these obligations.

    The types non-dischargeable debt in Chapter 7 bankruptcy were not arbitrarily chosen.  They are designated as non-dischargeable because of the nature of the debt, including debts resulting from improper or illegal behavior by the debtor.  However, with all things related to bankruptcy, things are not necessarily clear-cut.  For some non-dischargeable debt, a creditor must challenge not to have their particular debt erased by the bankruptcy.  Examples of this can include certain credit card charges, cash advances, or debts created by fraud or intentional injury to another person.  Under some circumstances, even after debts under a Chapter 7 bankruptcy have been discharged creditors can continue to pursue repayment, and the law will support them in their efforts.

    There are actually 19 types of non-dischargeable debts in Chapter 7 bankruptcy. The following is an abbreviated list of  non-dischargeable debt categories.

    • Any unscheduled debts the debtor fails to list on the bankruptcy filing
    • certain taxes
    • alimony, child or spousal support payments
    • divorce or separation-related debts to children or ex-spouses
    • government fines or penalties
    • student loans
    • DUI-related debts for personal injuries caused
    • Some retirement plan fees
    • Condominium association or cooperative housing fees
    • Attorneys’ fees for child support/custody cases
    • Criminal restitution penalties and other court-imposed fines

    If you are facing problems with debt and are wondering if Chapter 7 bankruptcy is something you should explore, then your first step should be to seek the advice of a knowledgeable bankruptcy attorney.  Call Zachary Law Group for a FREE 30-minute case evaluation.  We’ll put our experience and unique approach to work on your behalf, to tackle your legal problem and “Zach-It!”  So don’t spend any more time worrying about your situation – bring us your questions!  Contact us today at 1-855-Zach-law.

    Property exemptions in chapter 7 bankruptcy

    In a Chapter 7 (personal) bankruptcy, a person’s debts are examined in Bankruptcy Court to see which are eligible to be discharged or eliminated.  In addition, person filing for bankruptcy will be asked to disclose all of their assets to determine what, and how much, the debtor may keep and what must be used toward the payment of debt.

    Federal bankruptcy law and Arizona law both allow for certain exemptions as far as a debtor’s assets and possessions are concerned.  These laws are subject to change as the courts continue to interpret them.  Here is a partial list of some of the recently revised exemptions in the state of Arizona:

    Household Assets

    ▪       Some household furniture and furnishings

    ▪       Most household goods including some consumer electronic devices

     

    Business Assets

    ▪       Some tools, equipment, instruments and books

    ▪       Intangible business assets including some things such as phone numbers and client/customer contact information

    ▪       Most marketing tools such as websites, domain names or any other intangible work products

     

    If you are considering the possibility of filing for bankruptcy, it’s wise to discuss it with an experienced bankruptcy attorney first. At Zachary Law Group, we offer a FREE 30-minute case evaluation. Our approach to finding solutions to your legal problems is working together to “Zach-It!”  The sooner you get in touch with us, the sooner we can start helping.

    Put the power of the law on your side, to assert and protect your rights.  Call us today at 1-855-Zach-law.

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