May 21, 2009
Bankruptcy can be a confusing and overwhelming process. In addition to dealing with all the forms, the deadlines, the costs and the laws, there are many people involved in this process that you may be unfamiliar with. Here is a basic Who’s Who of Bankruptcy:
Debtor: This is the person filing for Bankruptcy protection. Saddled with debt beyond the ability to pay, this person is asking the court for a clean slate or a manageable reorganization and payment plan. Ideally, this person is represented by an attorney.
Secured Creditors: These are parties that have lent money to the debtor in exchange for a security interest in the property of the debtor. The classic example is the home mortgage lender or your car loan holder. If the debtor defaults on these loans, the Secured Creditor has a right to foreclose on the house or repossess the car that the debtor loaned the money against. In Bankruptcy, these creditors have a higher priority over an Unsecured Creditor.
May 14, 2009
Consumer spending, one of the primary indicators of economic health and growth, is made possible by readily available credit to consumers. Unfortunately, the ease with which consumers can get credit for goods and services also makes it very easy to get into unmanageable debt. While many good, hardworking people can maintain their debts, it only takes a trip to the hospital or family emergency or loss of work to miss a payment and send that debt spiraling out of control.
An unmanageable debt is a terrible burden to bear. Debtors often feel ashamed at their inability to pay, indignant towards their creditors, fearful of legal repercussions and powerless to solve the issue. Such a situation makes going about daily life extremely difficult, puts strains on families and hinders the debtors’ ability to find help and a solution. Bankruptcy law exists to remedy these problems.
May 8, 2009
Recently, I've had a number of great clients from the City of Maricopa, Apache Junction, Florence, and South Queen Creek, AZ. These towns and cities are all located in Pinal County. Pinal County is in a different Division of the Arizona Bankruptcy District than Maricopa County.
So what? All it means is that if you live in Pinal County, your meeting of creditors will be in Casa Grande instead of in downtown Phoenix. The meeting is held at a conference center called "the Property" on Gila Bend Highway.
March 9, 2009
The US Trustee Program is updating the median income numbers for cases filed on or after March 15, 2009.
Even though incomes are presently dropping, the numbers produced by the Census Bureau go back far enough that they capture an increase in median income in Arizona.
The new median income levels for bankruptcy filings in Arizona are:
Household Size - Income
- One - $43,397
- Two - $57,620
- Three - $62,002
- Four - $71,867
- Five - $78,767
- Six - $85,667
So what does this mean for you?
February 23, 2009
Last week, President Obama was in town to announce his plan to help stem the tide of foreclosures. Arizona has been particularly hard hit, which is one reason why he chose to come here to give his speech.
Mr. Obama began by describing how all of us are paying a price as a result of the home mortgage crisis – depressed home values, businesses closing, and high costs to local government.
So, he set out a four-part plan to try to stop the slide in home prices and shrink the foreclosure rate.
