Retaining Assets During Bankruptcy in Arizona

Posted on October 17, 2012 by Staff Writer

For many Arizona residents, bankruptcy is the only option to escape the crippling burden of debt or foreclosure. Chapter 13 is commonly called the “wage earner’s bankruptcy,” as workers can continue to keep a portion of income that they earn during bankruptcy to help get their feet back on the ground. Filing a Chapter 13 bankruptcy is a bit more complicated than the straightforward Chapter 7. According to the U.S. Federal Bankruptcy Courts, a Chapter 7 provides for “liquidation,” which means “the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors.”

In Arizona, according to the Arizona state bankruptcy courts, a Chapter 7 bankruptcy provides for a Homestead Exemption, of up to $150,000 for either a home (including mobile homes), plus the land upon which the home is situated. Personal property exemptions can be up to $4,000 and money, benefits, and proceeds up to $20,000. There are a few other property exemptions—making Arizona one of the best states in which to file a Chapter 7 bankruptcy—but if you’re interested in retaining the majority of your assets, including money earned while in the throes of bankruptcy, filing a Chapter 13 might be better for you.

The biggest advantage of a Chapter 13 over a Chapter 7 filing, according to the U.S. Bankruptcy Code, is that “Chapter 13 offers individuals an opportunity to save their homes from foreclosure.” If a person files for Chapter 13, he can “stop foreclosure proceedings and may cure delinquent mortgage payments over time.” In a state such as Arizona, which was hit particularly hard by foreclosures and the imploding of the housing market, a Chapter 13 filing might be a better option for cash-strapped residents.

If you or someone you know is considering bankruptcy, don’t go through it alone. Contact a dedicated Arizona state bankruptcy attorney today.

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Clean Energy Going Bankrupt, Again

Posted on July 23, 2012 by Staff Writer

The New York Times reported a story of a solar panel manufacturer that received a $400 million loan guarantee from the federal government and is now announcing that it will file for bankruptcy. Operating from Loveland, Colorado, Abound Solar says that their reasons for filing bankruptcy are plummeting prices and intense competition from Chinese manufacturers in the same field.

Before Abound, which spent about $68 of the loan guarantee before its credit was cut off by the Energy Department, another solar panel maker, Solyndra, collapsed in 2011 after also receiving federal funding. Republicans, with their presidential candidate, have been saying this is evidence of the Obama administration wasting taxpayers’ money by supporting clean energy.

Abound Solar struggled for months, eventually closing its factory in Tipton, Indiana, to conserve resources for a more advanced product. The company produced panels that were supposed to be more cost-effective, because they used a different technology, but as silicon cells became much cheaper, the product lost its cost advantage. Abound said it will dismiss its 125 employees and file for bankruptcy, but if they would have had the means for large-scale manufacturing, it could have been profitable.

Analysts said that there is a global oversupply in manufacturing of solar panels, and this will make it harder to succeed in the field.

Even if you are not competing against the global markets on cost-effective solar panel manufacturing, you might find yourself in a situation where filing for bankruptcy needs to be considered. To ensure that you make the right decisions regarding bankruptcy, get qualified legal help on your side. Contact a Phoenix Bankruptcy Attorney Today!

How Bankruptcy Filings Affects Utility Services

Posted on March 20, 2012 by Staff Writer

Filing a bankruptcy can help people who are behind in their utility payments.

Section 366 of the United States Bankruptcy Code covers utility service and the continuation or discontinuation of utility services

If you have utilty bills that are passed due at the time of filing your bankruptcy they will be eliminated and the utility company will be prohibited from shutting off your utiltiy.

You will only be responsible for future utility bills after the filing of your bankruptcy petition.

The utility company can ask for a security deposit or adequate assurance (they don’t often do this) if the utility company believes that you may have difficulty keeping current on your future payments.

If your utility service has been terminated before you file your bankruptcy, and you have the ability to make a down payment, the utility will have to reinstate your service.

If your utility has not been terminated, as a practical matter, when you file a bankruptcy all your pre-petition utility bills will be eliminated and you will only be responsible for future payments. If you have questions contact an Phoenix Bankruptcy Attorney today.