Bankruptcy – What is the Automatic Stay?

Bankruptcy – What is the Automatic Stay?

The automatic stay, is one of the most important functions of filing a bankruptcy case. The automatic stay is the protection that you receive from the US bankruptcy court from your creditors. The automatic stay, “stays” or “freezes” most creditor action when a bankruptcy case is filed.

For example. If your wages were about to be garnished, and you filed a bankruptcy case before the creditor had a chance to attach your pay, the filing of the bankruptcy case would stop the garnishment.  If you house was going into foreclosure, and you filed a bankruptcy case before the foreclosure date, the filing of the bankruptyc case would stop the foreclosure. Another example; assume your car payment was so far behind that it was about to get repossessed. If you file a bankruptcy case before the car is taken back by the creditor, the filing of the case would stop any repossession action by the creditor.

The automatic stay in bankruptcy is very powerful. Not only can creditors not take action such as foreclosure or repossession, but creditors cannot attempt to collect from you while there is a pending bankruptcy case. It is essential to bankruptcy and there are severe penalties for creditors who violate the automatic stay.

Like any rule, there are a few exceptions. For example with the automatic stay, sometimes it is not in effect if there are multiple bankruptcy filings within a certain amount of time.

At any rate, any one facing a foreclosure, repossession, wage garnishment, or even collection attempts, should consider contacting a qualified Arizona bankruptcy attorrney for protection. Please call us at 480-355-1377.

Bankruptcy and Your Tax Return

Bankruptcy and Your Tax Return


It’s the most worderful time of the year. Tax season? Probably not. But it is the time of year that most of us are looking forward to filing returns and getting some money back for their hard work. If you’re considering bankruptcy, however, take a step back before you send the return to our Uncle Sam.



The beginning of the year is usually the toughest time for a lot of people. The holidays are over, and most have overspent. People in an already bad financial situation have usually made their situation worse during the holidays. A lot of times it’s the holidays that make people realize they should consider bankruptcy.



Here’s the conundrum, your tax return is at risk. Yes, you could lose your tax return if you hurry up and file bankruptcy at the beginning of the year. So what do you do if you need to file bankruptcy at the beginning of the year, and you’re getting a substantial tax return? Not to sound cliche, go see an experienced Arizona bankruptcy attorney. We’ve been dealing with this for years. Matter of fact, we deal with the same issue, every year, countless times. You don’t have to lose that return. There are several options for you.



Feel free to contact my office if you want to talk to a lawyer who has dealt with this issue more times than can be counted. Call 480-355-1377 to schedule a free consult with an experienced Ariozona bankruptcy attorney.


Arizona Bankruptcy Blog – Should I File for Bankruptcy Relief?

Arizona Bankruptcy Blog – Should I file for Bankruptcy Relief?
It’s a question many have asked, and if you’re asking whether or not you should file for bankruptcy protection, you’re not alone. Many factors can contribute to an individual considering bankruptcy relief. Most common, credit cards, auto loans, student loans and mortgages have gotten out of control. Many times we have good financial times and over-barrow thinking that there will be no problem paying a creditor back.
The answer to the question, “should I file for bankruptcy?” depends on multiple factors. But what all of those factors boil down to is the question; “with my current income, will I be able to pay back my creditors on my own?” If the answer to that is no, then you need to take a step back and make some considerations. For example, is it reasonable that you will make more money in the near future and be able to pay your creditors, or are you just hoping that something changes? Are you sacrificing basic living necessities in order to pay your creditors? Are you digging into your 401k, or some other retirement fund in hopes of having a windfall or better financial times?
People frequently ask me if they should file for bankruptcy or not. My response is always an inquiry into the individual’s amount of debt, and current income and then ask them the question; “based on this income, how do you expect to pay your creditors?” The reaction is common. There generally is not a plan, and just the hope of better financial times. If this is you, perhaps bankruptcy should be considered. If there is an actual plan that works out mathematically, then maybe you can avoid bankruptcy.
If considering bankruptcy, be sure to contact an attorney who has experience in bankruptcy court. Bankruptcy is considered a niche area of law and it requires specialized knowledge of the bankruptcy code.