Bankruptcy – Community and separate property

Arizona is one of the community property states. This means that whatever the spouses acquire during their marriage, whether an asset or a debt, belongs to both of them (absent other agreements). In other words, after marriage, any debt incurred by either spouse creates an obligation to the creditor of both spouses. Any debt incurred by either spouse binds both of their community and separate property. Often times, people believe if their name is not on the credit card, they do not owe the creditor anything. Unfortunately, in Arizona, a creditor can pursue the innocent party in court and even garnish wages or levy bank accounts.

There are situations where only one spouse files for bankruptcy. In that case, the separate and community debts are being discharged as to the filing spouse only. What this means is that a non-filing spouse is still responsible for any community or separate debts. The risk is huge for the non-filing spouse. Where both spouses file, the discharge in a bankruptcy may discharge both the community and separate obligations of the debtors.

If you or anyone you know would like more information regarding Bankruptcy please contact me for a free consultation at : 

The Law Offices of Anca Iacob

7075 W. Bell Road, Suite 15

Glendale, AZ 85308

(623)266-0060

Please also take the time to visit my website at www.iacoblaw.com for more helpful information regarding Bankruptcy. 

Also feel free to "like" my page on Facebook and become a "follower" on my twitter page to support my business. Both can be found under The Law Offices of Anca D. Iacob, PLLC. 

Default Judgments and Bankruptcy

One can usually discharge default judgments in bankruptcy but, if at all possible, they should be avoided. Before allowing a default judgment to happen, talk to your attorney about the consequences this might have on you. So, what is a default judgment? A default judgment is a judgment that a judge can give a creditor when the debtor fails to appear and participate in the lawsuit against them. Entering an appearance in a lawsuit may prevent the default judgment from happening and also may postpone a judgment being entered against you. Why is this important? More time can help you properly prepare for filing your bankruptcy petition, if your situation warrants it. Additionally, a default judgment should be avoided because it could create some unwanted results if not properly handled. Creditors could garnish your wages, levy your bank accounts and place liens on your property. Sure, some of these consequences can be settled in a bankruptcy, but usually at the cost of the debtor’s time, money and efforts.

If you or anyone you know would like more information regarding Bankruptcy please contact me for a free consultation at : 

The Law Offices of Anca Iacob

7075 W. Bell Road, Suite 15

Glendale, AZ 85308

(623)266-0060

Please also take the time to visit my website at www.iacoblaw.com for more helpful information regarding Bankruptcy. 

Also feel free to "like" my page on Facebook and become a "follower" on my twitter page to support my business. Both can be found under The Law Offices of Anca D. Iacob, PLLC. 

*The Information provided for this blog and on my website does not constitute legal advice and should not be considered as such. For information regarding your particular situation please contact an attorney.* 

What Chapter should I file?

Today we will be talking about two different types of bankruptcy that you can choose to file. Each one fits the needs of different clients and is recommended when appropriate.

·         Chapter 7 Bankruptcy

This type of Bankruptcy may also be referred to as a “fresh start” or “liquidation”. Your debts are discharged or in other words canceled, but you may be required to surrender any non-exempt property to the trustee. However, you may keep secured property if you are current on all payment and continue making the regular monthly payments on the property.

·         Chapter 13 Bankruptcy

This Chapter is also referred to as a “reorganization” or “wage earner plan”. Chapter 13 bankruptcy allows you to keep valuable property, including your home and car, which you may be in the process of losing due to past due payments.  You are allowed to keep such property if you are in the position to make the necessary payments. Many times that will be the regular monthly payments, plus a payment that will go towards arrears. In this Chapter, you can have between three and five years to pay back the arrears. 

If you or anyone you know would like more information regarding Bankruptcy please contact me for a free consultation at : 

The Law Offices of Anca Iacob

7075 W. Bell Road, Suite 15

Glendale, AZ 85308

(623)266-0060

Please also take the time to visit my website at www.iacoblaw.com for more helpful information regarding Bankruptcy. 

Also feel free to "like" my page on Facebook and become a "follower" on my twitter page to support my business. Both can be found under The Law Offices of Anca D. Iacob, PLLC.