Search Results

Protecting Your Home in Chapter 7 Bankruptcy in Arizona: A Comprehensive Guide Introduction: Filing for Chapter 7 bankruptcy can be a daunting process, especially when it comes to concerns about losing your home. As a bankruptcy attorney in Arizona, I understand the importance of safeguarding your most valuable asset during these challenging times. In this guide, I'll walk you through the various strategies and exemptions available in Arizona to help you protect your home while seeking debt relief through Chapter 7 bankruptcy. Understanding Chapter 7 Bankruptcy in Arizona: Chapter 7 bankruptcy, also known as "liquidation bankruptcy," involves the sale of nonexempt assets to repay creditors and discharge most unsecured debts. While Chapter 7 offers a fresh start for individuals overwhelmed by debt, it also raises concerns about losing valuable property, including your home. Homestead Exemption in Arizona: One of the most critical protections for homeowners in Arizona is the homestead exemption. This exemption allows you to protect a certain amount of equity in your primary residence from creditors during bankruptcy proceedings. Beware, in order to take the Arizona Bankruptcy exemption you must have resided in Arizona for the last two years and purchased the home over 1215 days prior to filing for bankruptcy. In Arizona, the homestead exemption amount varies depending on the above mentioned rules. As of 2024, the homestead exemption allows you to protect up to $400,000 (adjusted with inflation) in your homestead. Note, the Arizona exemption cannot be doubled for married couples. It's essential to note that the homestead exemption applies only your home in which you reside. Vacation homes or investment properties may not qualify for this exemption. Timing of when to file bankruptcy in Arizona is key aspect of bankruptcy planning: When considering Chapter 7 bankruptcy, timing is crucial, especially concerning your home. If you plan to file for bankruptcy and want to protect your home, it's essential to understand how recent transactions or changes in ownership can impact your eligibility for the homestead exemption. For example, if you recently transferred ownership of your home to a family member or trust, the bankruptcy court may scrutinize the transfer for potential fraudulent activity. It's crucial to consult with a Mortensen Law Offices to ensure that your actions comply with the law and maximize your chances of preserving your home. How to calculate the equity in your home: Before filing for Chapter 7 bankruptcy, you must accurately calculate the equity in your home. Equity represents the value of your home minus any outstanding mortgages or liens. If your equity falls within the allowable exemption amount, you can likely protect your home from liquidation. For instance, if your home is worth $550,000, and you have a mortgage balance of $350,000, your equity would be $200,000. Since this amount is within the homestead exemption limit in Arizona ($400,000), you may be able to retain your home in bankruptcy. Remember you must live in Arizona and own the home for specific time periods to take certain exemptions when you file bankruptcy in Arizona. Discuss the timing with your attorney Strategies to Protect Your Home when you file bankruptcy in Arizona: In addition to the homestead exemption, there are several strategies you can employ to safeguard your home during Chapter 7 bankruptcy: Consult with a Bankruptcy Attorney: Seeking guidance from a qualified bankruptcy attorney is essential to navigate the complexities of Chapter 7 bankruptcy and maximize the protections available to you. Examine Joint Ownership: If you co-own your home with a spouse or another individual, understanding how joint ownership impacts your bankruptcy case is crucial. Depending on your circumstances, it may be beneficial to adjust ownership or utilize exemptions strategically. Before you take any steps to change any ownership you should consult with a qualified bankruptcy attorney who can advise you on the safest strategy. Avoid Asset Transfers: Engaging in asset transfers or property transactions shortly before filing for bankruptcy can raise red flags and jeopardize your eligibility for exemptions. It's crucial to refrain from such actions and seek legal advice on how to protect your assets lawfully. Explore Chapter 13 Bankruptcy: If you're at risk of losing your home in Chapter 7 bankruptcy due to excessive equity or other factors, Chapter 13 bankruptcy may offer an alternative solution. Chapter 13 allows you to restructure your debts and create a repayment plan while retaining your assets, including your home. Conclusion: Protecting your home in Chapter 7 bankruptcy is achievable with careful planning and the guidance of Mortensen Law Offices . By understanding Arizona's homestead exemption laws, calculating equity accurately, and implementing strategic measures, you can increase your chances of retaining your most valuable asset while obtaining debt relief. If you're facing financial difficulties and considering bankruptcy, don't hesitate to reach out to a qualified bankruptcy attorney for personalized guidance and support. Your home is worth protecting, and with the right approach, you can emerge from bankruptcy with a fresh start and a secure future.

IF YOU CANNOT AFFORD YOUR BILLS CALL AN ATTORNEY FOR A BANKRUPTCY CONSULTATION. Hi, Wayne Mortensen here. I’m a bankruptcy attorney here in Tucson, AZ. I deal with all kinds of debt problems - tax problems, student loan problems and debt settlements. I do everything. As people are sitting around the kitchen table, they’re at home sitting in front of their computer and they’re getting their paycheck and they’re starting to look at how they are going to pay their bills. They might have one of those inkling feelings, you know that thought, maybe I need to do something about this. Maybe I need to call a debt consolidation company. Maybe I need to call a bankruptcy attorney. Maybe I need to talk to someone and get some good advice. So, what I tell people, and I want you to remember this word if you are in that scenario. I want you to - Freeze. I don’t want you to do anything. I want you to stop. If you are about to send off all those credit card payments, I want you to stop. I don’t want you to pay them that minute. I want you to call a qualified bankruptcy attorney and I want you to get a free consultation. Call my office, I can talk to you today. SET UP AN IN OFFICE CONSULTATION WITH A QUALIFIED TUCSON BANKRUPTCY ATTORNEY. I want you to Freeze because there is nothing more disheartening to me than when I have a client come in who has gone out and paid a bunch of stuff or maybe cashed out a retirement, got money out of their IRA, they’ve gone out and paid back family or friends or transferred something away and then they call me. That is not the time to call me. The time to call me is when you know that you may have a problem looming on the horizon. That’s the time to come in, sit in this office, and get a free consultation where we can look at all of your debt and we can look at everything that we need to do and then I can advise you on how to do it. When should I file bankruptcy? Now I might advise you, hey, go home today, pay those bills that you were going to pay. Because maybe we’re not ready or maybe we need to do this or maybe we need to do that but you really cut off your legs when you go out and you start making all those decisions if you really realize that something bad might be coming down the pike. Most of my clients that come into my office don’t come in for kicks and giggles. They’re not coming in just to have a fun conversation with me. They’re coming in to get information they need so they can make informed decisions. So, just Freeze. Conclusion Don’t do anything until you talk to me. Now, I’m not saying you shouldn’t pay those bills, you should just spend that money willey-nilley. Set the money aside, that you were going to pay those bills with, come see me, and then we can decide what to do. My name is Wayne Mortensen. I’ve seen a lot of people who have caused a lot of unnecessary harm and problems for themselves by not calling me in advance and getting the advice that they need. So, give me a call. I look forward to talking with you.

When looking for a bankruptcy lawyer in Tucson, AZ, it's important to consider the following: How to find an experienced Bankruptcy Attorney in Tucson. Look for a lawyer who has experience handling bankruptcy - all kinds of bankruptcy cases. Don't try to hire just a Chapter 7 Tucson Attorney. Hire a Tucson Lawyer that deals with all kinds of bankruptcy and all kinds of debt. Certain debts like Student Loan Debt and Back Tax Debt take a certain amount of specialized knowledge. Your attorney should be able to have a comprehensive free consultation where you can freely discuss all aspects of your debt. Mortensen Law Offices deals with both Chapter 7 and Chapter 13 Bankruptcy. We also deal with with discharging student loans and back taxes inside bankruptcy. Call Mortensen Law offices today for a free Comprehensive consultation about you rights in bankruptcy. Warning: Picking the wrong attorney can have serious and costly consequences. You should always request a phone or in person consultation with an attorney. If that attorney can't answer your questions - you should NOT hire them. Credentials - your attorney should be licensed to practice law in the state where you file. With 26 years as a licensed bankruptcy attorney in Arizona Mortensen Law Offices has the experience that will protect you from your creditors. Mr. Mortensen is one of Arizona's highest filing bankruptcy attorneys. Wayne Mortensen has filed bankruptcy for individuals all over the state of Arizona. Many of Wayne Mortensen's bankruptcy filings are for more complex cases. He specializes in protecting all of your assets when you file bankruptcy. He is also adept at maximizing the benefit of both Chapter 7 and Chapter 13. If you are in Tucson Arizona call Mortensen first. I receive many referrals from other attorneys who want their clients protected from aggressive creditors. Should I look at reviews before I pick a bankruptcy attorney? Yes, you should definitely look at reviews before hiring your Tucson Bankruptcy Attorney. Mortensen Law Offices has hundreds of reviews from satisfied Arizona clients. We get many reviews from people we have helped avoid bankruptcy too. Call us and we will analyze your case for free to see if you even need to file for Chapter 7 Bankruptcy. Is a free consultation important before filing a bankruptcy? A consultation before you file a bankruptcy is very important. Don't skip the free initial consultation with your qualified Tucson Bankruptcy Attorney Wayne Mortensen. Don't meet with a sales person or paralegal. Many attorneys in mill bankruptcy firms will have an assistant meet and consult with you. This is not in your best interest. The small details that you discuss with you attorney can mean huge consequences. Also, if your attorney is not answering your questions directly (with confidence) you may consider not hiring that attorney. WARNING: I have seen clients harmed by hiring inexperienced attorneys. I have witnessed multiple debtors lose homes and vehicles by not getting good legal representation. What Fees should I expect to pay when I file bankruptcy? The fees that you can expect to pay when you file bankruptcy is a reasonable attorney fee, a court filing fee and credit report fee. There may be additional fees for additional services that take place in bankruptcy court. We make our Chapter 7 bankruptcy fees affordable. Call today for a free price quote after an initial consultation. Conclusion Bankruptcy is complex make sure you are hiring an attorney who can help you safely navigate the laws in bankruptcy court. I have seen untrained attorneys cause significant damage to clients because they did not understand the law. Don't Be That Client!

If you're struggling with overwhelming debt and considering bankruptcy in Arizona, you may be wondering how much of your property you'll be able to keep. Fortunately, Arizona has some generous bankruptcy exemptions that can help you protect your assets and get a fresh start. Here are some of the most common types of Arizona bankruptcy exemptions: Homestead Exemption: The homestead exemption is one of the most important exemptions for individuals filing for bankruptcy. It allows you to protect up to $400,000 of equity in your primary residence. Personal Property Exemption: Arizona bankruptcy law provides a personal property exemption that allows you to protect up to $15,000 worth of personal property. This can include things like clothing, furniture, appliances, and other household goods. Vehicle Exemption: Arizona also has a vehicle exemption that allows you to protect up to $15,000 worth of equity in your vehicle. Retirement Account Exemption: Retirement accounts, such as 401(k)s, IRAs, and pension plans, are generally fully protected in bankruptcy. This means that you can keep all of your retirement savings, no matter how much you have. Tools of the Trade Exemption: If you use tools and equipment in your work, you can protect up to $5,000 worth of these items under Arizona bankruptcy law. This can be especially important for individuals who are self-employed or work in a trade. Bank Account: You are allowed to exempt one account with up to $5000 in it on the day you file a bankruptcy. It's important to note that these are just a few of the most common types of Arizona bankruptcy exemptions. There are many other exemptions available, and the amount and types of exemptions that apply to your case will depend on your individual circumstances. If you're considering bankruptcy in Arizona, it's important to work with an experienced bankruptcy attorney like Mortensen Law Offices who can help you understand your options and protect your assets.

Debt consolidation is a financial strategy that involves combining multiple debts into one loan or line of credit. The goal of debt consolidation is to simplify monthly payments, reduce interest rates, and ultimately, pay off debt faster. While debt consolidation can be an effective tool for managing debt, there are several pitfalls that can derail your efforts. In this blog post, we'll explore some of the most common pitfalls of debt consolidation and how to avoid them. 1. Falling back into old habits One of the most significant pitfalls of debt consolidation is falling back into old spending habits. Debt consolidation can provide temporary relief, but if you don't address the root cause of your debt, you may find yourself in a worse financial situation than before. It's important to identify the factors that contributed to your debt and make changes to your spending and budgeting habits. 2. Hidden fees and charges Debt consolidation companies often charge fees for their services, such as application fees, origination fees, and prepayment penalties. These fees can add up quickly and may not be immediately apparent, so it's essential to read the fine print and understand the terms of your loan before signing any agreements. Make sure to compare the costs of different consolidation options to find the one that works best for you. 3. Long-term cost While debt consolidation can reduce your monthly payments, it can also extend the length of time it takes to pay off your debt. This means you may end up paying more in interest over the life of your loan than if you had continued making separate payments. It's important to calculate the total cost of your consolidation loan, including interest, fees, and any potential tax implications, before making a decision. 4. Risking assets Some debt consolidation options require collateral, such as a home or car, to secure the loan. This means that if you're unable to make payments, you could risk losing your assets. Make sure you fully understand the terms of your loan and the potential consequences of defaulting before putting your assets at risk. 5. Not addressing the underlying issues Debt consolidation is not a magic solution to financial problems. If you don't address the underlying issues that caused your debt in the first place, you may find yourself in a similar situation down the road. Take the time to evaluate your spending habits, create a budget, and develop a plan to manage your debt and expenses over the long term. In conclusion, debt consolidation can be a useful tool for managing debt, but it's important to approach it with caution and awareness of the potential pitfalls. By understanding the risks and taking steps to avoid them, you can use debt consolidation to help you achieve your financial goals and regain control of your finances.

When you file bankruptcy in Arizona you can keep "exempt" property. Exempt property is protected from being taken by the bankruptcy trustee to pay off your creditors. The exemptions that you are entitled to depend where you have lived in the past. This can get very complex and when you are dealing with assets that you don't want to lose in bankruptcy court it is vital that you discuss what exemption scheme you qualify for. Mortensen Law Offices takes pride in exemption planning prior to filing bankruptcy. We will advise clients on the timing of filing a bankruptcy in Arizona to maximize the exemption and the amount of property they can protect after they file bankruptcy in Arizona. Some examples of exemption planning include the following. Lets say you recently moved to Arizona and have purchased or been given an asset that is not currently protected. Your attorney should look at all aspects of your case to help you determine if it may be worth delaying the bankruptcy filing in Arizona so that you can qualify for an exemption that you other wise would not qualify for. I had a client where we delayed the filing so that we could protect the equity position that he held in his Arizona residence. This amounted to him protecting his home in bankruptcy. I have never met a client yet that wanted to lose his home in bankruptcy (unless they were surrendering because they could not afford it). When you are exemption planning it will be important to look at all aspects of your bankruptcy case. You need to look at means testing issues that may that may arise when you file; you also may be in the process of current legal action that can expose you to unwanted consequences. Be careful! While you are trying to resolve one issue it is very easy to create other unintended problems. Again, visit with Mortensen Law Offices and we will assist you in planning when to file your bankruptcy. Some examples of exemptions that exist in Arizona (but only if you qualify) are the following: Your home - $400,000 if you qualify Your car - $15,000 if you qualify Personal property, such as clothing and household goods, up to a certain value Tools that you use in your job - $5,000 Retirement accounts, such as 401(k)s or IRAs Public benefits, such as Social Security or unemployment compensation This list goes on so discuss all of your property with Mortensen Law offices when you get a free consultation for bankruptcy in Arizona. It is important to note that exemptions can vary by state and change over time. Never rely on any internet information and always consult with a qualified attorney prior to filing a bankruptcy in Arizona.

To file bankruptcy in Arizona, you will need to follow the steps. These steps include: Determine which type of bankruptcy you are eligible to file for. In Arizona, the most common types of bankruptcy are Chapter 7 and Chapter 13. You should consult a qualified bankruptcy attorney that will assist you in deciding which bankruptcy will protect your property. The attorney should complete a means test to determine what kind of bankruptcy you qualify for. Gather the necessary documents, such as pay stubs, tax returns, and a list of your creditors. Again, your attorney will direct you with regard to other documents that you should have access to when you want to file bankruptcy in Arizona. Complete the required credit counseling course. This MUST be done prior to filing. BEWARE. If you fail to complete this prior to filing your case may be subject to dismissal. This course can be done online or in person. There is a second course that you will need to do after filing. Again, Mortensen Law Offices can assist you in your bankruptcy needs. File your bankruptcy petition and schedules with the bankruptcy court. This can be done online. Mortensen Law offices will file all required documents. You must review and sign the documents prior to filing. The documents are filed under Penalty of Perjury. After you file you will need to attend the 341 meeting of creditors. This is a meeting where the bankruptcy trustee will ask you questions. This is an important meeting where you answer questions under oath. The trustee is usually looking for clarification regarding your bankruptcy paperwork. You must provide documents to the trustee in bankruptcy if requested. Also, you have to cooperate with the trustee even after your case is discharged. Complete a financial management course and send a copy to the court. This can also be done online or in person. The bankruptcy court will not grant a discharge of your debt if this course is not completed. Obtain a discharge of your debts. This is the final step of the bankruptcy process, and it releases you from the legal obligation to pay certain debts. Your case does not automatically close upon discharge. It is vital to get legal advice so you understand the risks of filing bankruptcy. There are many caveats that go along with this basic outline. Contact Mortensen Law Offices for advice regarding your debt and how to handle it in bankruptcy. The bankruptcy process can be complex, and it's recommended that you consult with an attorney who can guide you through the process. Call us today and we can answer your questions today about filing bankruptcy in Arizona

Chapter 7 bankruptcy is commonly referred to as a "liquidation bankruptcy". That means that in Chapter 7 if you have unprotected assets the court-appointed trustee will sell those assets in order to pay your debt. DON'T PANIC! At Mortensen Law Offices the majority of our clients lose NO assets when they file a Chapter 7 Bankruptcy. The reason is simple - they get advice from a qualified bankruptcy attorney prior to filing a Chapter 7 bankruptcy. Lets say there is an asset that the trustee takes and sells. What happens next? The proceeds from the sale of the assets are distributed to the creditors. This can get a little technical. After the property has been sold and the proceeds distributed, the debtor is discharged. However, some debts don't go away in a Chapter 7 bankruptcy. Some debts that are not automatically discharged include SOME taxes, student loans, fines and penalties. There are others - so consult with Mortensen Law Offices about which debt will most likely be discharged in a Chapter 7 bankruptcy. The most common types of consumer debts that Mortensen Law Offices discharges in a Chapter 7 bankruptcy include the following: - Credit Card Debt - Personal Loans - Pay Day Loans - Medical Debt - Judgment Debt - Repossession Debt - Certain OLD tax debt (see below) - Student Loans (see below) To qualify for Chapter 7 you must pass the means test. Discuss this with Mortensen Law Offices and we can direct you in passing the means test so you can qualify for Chapter 7 bankruptcy in Arizona. As to Student Loan discharge, there have been recent changes regarding hardship lawsuits in bankruptcy. Student loan discharge is now more realistic because the Department of Education and the Department of Justice have instituted new procedures to stipulate to dischargeability of student loan debt. These are new rules and guides that give clear direction so you will have more confidence in the outcome of a lawsuit in bankruptcy court. See my other blog on student loan discharge. Clients always come in and tell me that "they know they have to pay back taxes and they cannot be discharged in bankruptcy". Nothing can be further from the truth. I have discharged Millions of dollars in back taxes. If you have consulted with an attorney about bankruptcy and they have not discussed discharging old taxes -RUN AWAY very fast. Come see Mortensen Law Offices and we will tell you how to discharge back taxes in bankruptcy.