4 days 21 hours ago

Millions of Americans are dealing with vast amounts of student loans that can be difficult to manage. While some borrowers may have reasonable repayment terms based on the amount of money the student borrowed, other students get locked into decades-long repayment plans they may never pay off. Many borrowers are becoming more interested in the […]
The post What is Considered Undue Hardship for Student Loans in CA? appeared first on The Bankruptcy Group, P.C..

1 week 1 hour ago

Yes, you may file a Chapter 7 or Chapter 13 bankruptcy as long as you can establish and prove your average income for the six months prior to filing your case.
If you are self-employed or an independent contractor looking into filing Chapter 7 or Chapter 13 bankruptcy,  you need to verify your income. While it is a requirement for all bankruptcy filers to report and document their income, this can be tricky for the self-employed. So, how do you go about verifying your income?
What is the Purpose of Income Verification in a Chapter 7 or Chapter 13 Bankruptcy Filing?
Reporting and documenting your average income for the six months before filing your Chapter 7 or Chapter 13 bankruptcy case is required of all bankruptcy filers. Income verification will enable the bankruptcy court to decide if you are eligible for either type of bankruptcy. Income details are required when you undergo the “means test”, should you file for Chapter 7 bankruptcy. On the other hand, for Chapter 13 bankruptcy, your income is a major factor in crafting your repayment plan, a document that shows how you will pay back your creditors. Your bankruptcy lawyer in Seattle will be able to help you understand the nuances of both Chapter 7 and Chapter 13 bankruptcies and provide you professional legal advice on which one is applicable to you.
How WIll I Go About Verifying My Income As A Self-Employed Individual?
Determining your average monthly income is a challenge to anyone whose income is not fixed and is dependent on the number of projects one comes across as a self-employed individual or as an independent contractor. The cash flow can be irregular,  oftentimes, undocumented, unless you track job orders and send out invoices to your clients. It is even riskier if you are unsure if you filed everything correctly because it may result in dismissal of your bankruptcy case. All filers of bankruptcy should be sure of the financial information that they declare because there have been instances of bankruptcy cases being dismissed because of miscalculations or unintentionally declaring incorrect figures in the documents.  For this reason, tracking and documenting your income as early as now is critical, especially if, due to unforeseen events, you may need to file for bankruptcy. Working with a Seattle bankruptcy lawyer at the onset may prevent the risk of making mistakes in the bankruptcy filing process.
What are the Means to Monitor My Income?
You only need basic accounting or bookkeeping skills to keep track of your income.  Balancing a spreadsheet where you list down your income and expenses or creating profit and loss statements is already a good start. However, bear in mind that this DIY documents might be questioned by the bankruptcy court because is there is no third party involved to provide the checks and balances. It will help if you hired a bookkeeper or accountant to do it for you. Otherwise, you must be able to come up with enough documentation to back up your declaration.  Talk to a Seattle bankruptcy lawyer to make sure you are on the right track and prevent the risk of dismissal of your bankruptcy case.
Are There Specific Documents That Can Support My Income Declaration?
There are several ways by which you may determine your income for the bankruptcy court:
✓Bank statements.  These are very useful because all deposits, whether cash or check are recorded by your bank. You may also obtain copies of the checks from your bank. Alternatively, if you have online banking access, you can actually print them from your computer.
✓Signed statements. Always get a signed statement from your clients as proof of the cash payments you received from them. You may deposit the cash to your bank account and attach the signed statement to your bank statement.
✓Tax returns.  Your tax return is good documentation of your income, that is if your tax return covers the time period six months prior to your bankruptcy.
✓Check Stubs. Probably the best way to determine your income is through check stubs. Always save them to support your income statements. Otherwise, try to obtain other proofs of payments from your clients
✓Invoices and  Contracts: The contracts you signed off with your clients prior to procuring your services or the invoices you sent out to them are useful to verify your income. If you did not issue invoices,  start sending them out if you are looking into filing bankruptcy.
If you or any self-employed individual you know is considering bankruptcy, it is in your best interest to talk to an experienced bankruptcy lawyer in Seattle. Our bankruptcy lawyers at Northwest Debt Relief Law Firm will help you be better prepared for the bankruptcy process. Our empathic bankruptcy lawyers will help you through the journey of reclaiming your financial freedom. Call us now for a free case evaluation.

The post Can A Self-Employed Individual File For Bankruptcy? appeared first on Portland Bankruptcy Attorney | Northwest Debt Relief.

1 week 2 days ago

As an Arizona attorney I have been involved in thousands of Arizona trustee sales.
Never do a short sale, deed in lieu of foreclosure, allow a trustee’s sale, or a foreclosure to go forward without first obtaining both legal and tax advice. You cannot undo serious mistakes once the process is completed.

What is a trustee’s sale?
trustee salesA lender uses a trustee to collect the money they have invested in the property by selling the real property at a public auction.  If others bid at the auction then the lender is paid. If there are no bidders, then the lender becomes the owner of the property.
Both the trustee sale and foreclosure processes are set by the statutes of the state where your property is located.  Not all states have the same law therefore it is very important for you to talk to an local attorney experienced in this area of law.  Do not rely on the Internet to provide accurate information because each person’s situation is unique and will dramatically change the legal and tax advice that you should be given.
Never do a short sale, deed in lieu of foreclosure, allow a trustee’s sale, or a foreclosure to go forward without first obtaining both legal and tax advice.
trustee salesYou cannot undo serious mistakes once the process is completed.  So not rely on any information from a realtor, next door neighbor or inexperienced attorney.  This is your life, your future and you must be fully educated before making any choices.  I do not say this in order to scare you, I say it because I have seen hundreds of people facing dire consequences that could have been avoided if they just sought competent legal and/or tax advice.
We have several videos on our web site. Below are just a few that might be of interest:
♦ “Lender’s Foreclosure Rights in Arizona”
♦ “Should I keep my home or let it go into foreclosure?”
♦  “Five Quick Tips on How to Find a Great Attorney”
♦  “Meet Ms. Drain and Suggestions on How to Hire an Attorney”

The post Arizona Trustee Sales, Foreclosures and Short Sales appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.

1 week 4 days ago

Are you struggling to pay business debts? Are you feeling the weight and stress of what feels like an endless amount of debt crushing you? Is your business failing to produce enough income to cover expenses? Could your business really benefit from being reorganized? If you are a business owner, filing bankruptcy probably is one of the last things you want to consider. Yet, according to the Small Business Administration (SBA) more than 50% of businesses fail within the first ten years. Unfortunately, filing business bankruptcy is something many business owners need to consider. Filing bankruptcy does not mean the death of your business. Actually, filing either Chapter 11 or Chapter 13 bankruptcy allows you to save your business by reorganizing your debt. Filing bankruptcy can bring much needed relief from financial stress and provide a way for you to give your business a fresh, financial start.
The post How Filing Bankruptcy Affects Your Business appeared first on Tucson Bankruptcy Attorney.

1 week 6 days ago

Shenwick & Associates is happy to announce that we have just settled another taxi medallion debt with a favorable result for the client. In resolving this case, IRC (Internal Revenue Code) § 108was raised in the settlement negotiations, and the purpose of this blog post is to discuss IRC § 108, the structure of the settlement agreement and the impact of IRC § 108 on the settlement.IRC § 108 provides that if an individual or an entity is relieved of indebtedness, then that indebtedness is deemed to be ordinary income to the debtor or taxpayer, and they must report that income on their tax return. There are two exceptions to this rule; first, if the taxpayer/debtor files for bankruptcy protection, then the relief of indebtedness income is not picked up; and second, on a balance sheet basis, if the individual’s liabilities exceed their assets and they are insolvent, then they do not have to pick up the income.In many of our taxi medallion workouts, we engage in the workout to avoid a personal bankruptcy filing by the taxi medallion owner, so the bankruptcy filing exception to IRC § 108 does not apply.An example of the application of IRC § 108 will help to explain the above. Let’s assume that an individual owes a financial institution $1,000,000.  The individual is unable to pay the $1,000,000, so the parties enter into a workout (an out of court settlement) in which the individual repays the financial institution $500,000. According to IRC § 108, the taxpayer must pick up the $500,000 differential between what he or she owed and paid as ordinary income. Many clients assume that the $500,000 of differential would be deemed to be capital gains, but it is ordinary income.The second question raised by clients is how does the IRS find out about this relief of indebtedness income? The answer is that the institution is required to file a Form 1099-C with the IRS reporting the relief of indebtedness income for more than $600 of forgiven debt.So now let’s look at our recent taxi medallion settlement and how IRC § 108 impacted the settlement. The facts of the case were as follows: a bank was owed $650,000 for a taxi medallion owned by a mini fleet and the loan was guaranteed by an individual. The owner of the mini fleet and guarantor of the taxi medallion loan was not earning enough money from driving or leasing out the medallion to repay the $650,000 and she didn’t want to file for personal bankruptcy. We negotiated with the bank, and the settlement that was ultimately reached was as follows: (1). the mini fleet would surrender the medallion to the bank; (2) the guarantor would pay the bank $150,000 as part of the settlement; and (3) the parties would enter into a settlement agreement with mutual releases to document the settlement.The bank drafted the settlement agreement, which provided that the bank would file a 1099-C in an amount to be determined for relief of indebtedness income to the guarantor. We raised this issue with the guarantor, who sought advice from her CPA.  Her CPA indicated that they could not give her clear guidance and that this area of the tax law was murky, but that if the 1099-C was issued to the guarantor, she would pick up a significant amount of taxable ordinary income.

  1. We indicated that the settlement agreement should be revised to indicate the amount of the release of indebtedness income. The formula is the amount of the medallion loan, less the amount of money paid by the guarantor, less the value of the taxi medallion; in this case, $650,000-$150,000-$200,000=$300,000.
  2. The wild card issue here was what was the value of the medallion when it was surrendered? We track the TLC’s monthly medallion transfer reports, and we advised the guarantor as to what we believed the value of the medallion was. We've also noted that many clients have imputed value for medallions for their internal books and records of $200,000 to $225,000.
  3. We also advised the client that it would be better to have the relief of indebtedness income reported the corporation instead of the individual guarantor, and that if the corporation elected to convert from a S corporation to a C corporation, the income would be reported as payable by the corporation instead of the individual guarantor.
  4. We’re not tax lawyers, but we are familiar with the IRC and James Shenwick has an LLM in Taxation from the NYU School of Law. We will raise potential tax issues in these workouts for clients, which need to be addressed by their tax advisers or CPAs.

The client acknowledged the tax risk and moved ahead with the settlement agreement, but she indicated that she had losses from other assets which she could offset against the taxi medallion relief of indebtedness income and was thrilled to surrender the taxi medallion and compromise the related loan. We were thrilled to be part of another successful taxi medallion workout!  Clients who own “under water” taxi medallions are encouraged to consult with James Shenwick to discuss their optimal strategy with respect to their taxi medallion loans. Jim

1 week 6 days ago

MIDTOWN, Manhattan -- It's a proposal that would affect almost every driver in New York City starting in 2021, if it passes the state legislature this year.

However, congestion pricing -- the plan that would charge drivers for driving in the southern third of Manhattan's streets -- has already been in effect for yellow and green cab drivers since February 2.
Many of the drivers say that the added cost is ruining their business. On Wednesday, dozens of cab drivers held a mobile, and very loud, protest against the surcharge outside of Gov. Andrew Cuomo's office.

A few dozen cabs taped protest signs to their vehicles, and drove around city blocks near the governor's office on Third Avenue and 41st Street on Thursday afternoon. As they passed, they honked their horns incessantly, and chanted anti-surcharge slogans along with other protesters, who were on the sidewalk.

They all said that the $2.50 surcharge, which is charged to passengers in addition to other base charges at the beginning of each ride, is killing business, and killing them, literally.

"One of my brothers, he bought a medallion [for] $700,000, [that] he couldn't pay to the bank," said cab driver Richard Chow, about his deceased brother, Yu Mein "Kenny" Chow. "He committed suicide in May."

A medallion is a metal plate displayed on the hood of a cab to show that it has city approval to operate. Each medallion costs six figures, but as recently as 10 years ago, they sold for $1 million a piece. There are now so many for-hire cars, such as Uber and Lyft, on New York City streets that medallions have significantly lost their value. Some drivers are able to get one for as low as $175,000.

Drivers also said that the congestion surcharge, which is designed to raise money for public transit improvements, is reducing the number of customers the taxis can attract.

"In rush hour, I pick up only one fare, two fares, that's it," said one driver who only gave his last name, Tong. "I lose a lot of business."

He was among the dozens honking their horns and yelling slogans outside of the governor's office.

They said that they want their voices heard in Albany by the legislature, as well as by Gov. Cuomo.

"We wanted to remind our governor," said Bharavi Desai, president of the Taxi Drivers' Alliance, an advocacy group, "that behind each wheel is a person that is struggling, and we need an exemption" to the surcharge.

Her organization is endorsing a hike in taxes on higher income sources that it says are untaxed or under taxed. Desai said that taxes on hedge fund managers' incomes could raise $3 billion yearly for public transport, for example.

Wednesday's protest is the first of a series. Two more are planned for later this month.

Copyright 2019 WPIX.  All rights reserved.

2 weeks 6 days ago

Consumer Financial Protection Bureau Releases Report on First-Time Military Home Buyers

The Consumer Financial Protection Bureau (CFPB) released a report focusing on mortgages made to first-time homebuyers who are serving in the armed forces or are veterans. The Bureau’s report is the first time researchers have been able to provide a description and analysis of servicemembers’ mortgage choices and mortgage performance, both during and after the housing crisis of the last decade. (reprint from CFPB announcement – 3/1/19)
military home buyersWhen buying a house, servicemembers — defined here to include both those on active duty and veterans — have the option of taking out a home loan that is partially guaranteed by the U.S. Department of Veterans Affairs (VA). VA-guaranteed home loans differ from other mortgages in several ways including allowing a purchase with no down payment and without mortgage insurance. Servicemembers may also choose other mortgage products, including conventional loans or loans by a different government agency.
Today’s report spans the years leading up to and after the housing crisis. Among the key findings:

  • The share of first-time homebuying servicemembers using VA mortgages increased from 30 percent before 2007 to 63 percent in 2009. Among non-servicemember first-time homebuyers there was a parallel increase in the use of FHA and USDA mortgages. However, whereas non-servicemembers’ reliance on FHA/USDA mortgages declined after 2009, servicemembers’ reliance on VA loans continued to increase. In 2016, 78 percent of servicemember loans were VA loans.
  • The greater share of VA loans among servicemembers was part of a larger shift among consumers (both servicemembers and non-servicemembers) away from conventional to government-guaranteed mortgages between 2006 and 2009. Conventional mortgages—that is, non-government-guaranteed mortgages—were about 60 percent of loans among first-time homebuying servicemembers in 2006 and 2007, but this share declined to 13 percent by 2016. By comparison, the conventional loan share among non-servicemembers fell from almost 90 percent before 2008 to 41 percent in 2009, then increased back to 60 percent in 2016. The combined share of FHA and USDA mortgages to these borrowers increased and then decreased accordingly.
  • The median loan amount for first-time homebuying servicemembers with a VA loan increased in nominal dollars from $156,000 in 2006 to $212,000 in 2016, closely tracking the median value of conventional home loans taken out by non-servicemembers. By contrast, the median loan amounts in nominal dollars for servicemembers who used conventional or FHA/USDA mortgages during this period were lower in value compared to VA loans and increased at a slower pace, growing from $130,000 in 2006 to $150,000 in 2016.

military home buyersThe Quarterly Consumer Credit Trends report, “Mortgages to First-time Homebuying Servicemembers,” is available at:

WARNING FROM DIANE DRAIN: Using your VA benefits to buy a home may lead to serious financial problems if you cannot pay your mortgage and the lender forecloses.
I did not let my ‘jar head’ HUSBAND use his VA eligibility to buy our home because of this exposure.
Arizona law protects us, but not federal law.

The post Mortgages for First Time Military Home Buyers appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.

3 weeks 2 days ago

Most people don’t know that lazy lawyers will not push an insurance company to pay top dollars.
insurance company low offerThe insurance company’s first offer is based on the hope you will take the quick money and run. Lawyers who don’t care about their clients’ best interests can make a lot more money settling cheap and moving on to the next case, and the next, and so forth.  In order to get pain and suffering the attorney must provide the insurance company or their lawyers details concerning the pain or difficulties their client experienced because of his/her injuries.  If this is done properly the insurance company will get the message that the attorney cares about the client.  In all situations the attorney must be willing to commit the time needed to set up a proper settlement for their client.
The attorney could make more money settling their cases quickly so they can move on to another client.
An attorney who details why this case supports a higher claim makes it easier for the adjuster or insurance company’s attorney to get authority to settle for more than the amount they will offer a lawyer who is only looking to get a quick settlement.  One way they know this attorney is lazy is the initial demand.  If the attorney just makes a “standard” demand with no details, then the insurance company knows this is a lazy attorney who will be willing to settle for far less than the case is worth.
Reputation of the attorney is key to a good settlement.
The insurance company and their lawyers know the reputations of many lawyers in the area, or they know the reputation of the firm the lawyer works with.  This knowledge will affect the insurance company’s willingness to settle and the amount they will offer.
What about pain and suffering?
insurance company low offerThe client must have a situation that supports a higher settlement, including pain and suffering.  They can only recover substantial pain and suffering damages if the injuries actually caused significant pain, suffering or loss of enjoyment of life.  If the client is not able to honestly persuade their own attorney that the accident, injury, treatment and recovery was painful and difficult, the client will not be able to persuade a jury either.  It is important that the attorney spend enough time educating the client so that both will understand the view a third party (like a jury or arbitrator) will have about the injury.  It is very important that the client be credible and honest or a jury or arbitrator won’t care.
Attorney’s reputation is very important in maximizing the size of the award.
The case value should be based on what a jury or arbitrator is likely to award, not what the insurance company offers.  If the insurance company doubts the attorney will take the case to trial, it will steeply discount the value.  The insurance company does not want to try cases if there is a significant chance the jury will award more than Plaintiff was willing to accept prior to trial.
If the insurance company believes the attorney will not take a case to court will not offer as much as they would offer if they know the attorney can and will go to trial.
insurance company low offerNever assume the attorney is telling you the truth.  They may advertise a high “success” rate, but do not tell their clients that this is because they settle every case and rarely, if ever, take a case to trial.  The attorney may say that the insurance company is afraid of them because they are “such good litigators”.  Ask the attorney for proof of their statements.  Look at the court records in the county or state where the attorney practices.  How many times does that attorney appear in court?  How many cases go through the entire trial?  Ask the attorney for references and look at the on-line reviews.  Is their office or clothing organized or a pigsty?  Their physical appearance tells you a lot about their professionalism.
Do your homework before hiring any professional – doctor, lawyer, plumber or mechanic.  Trust your gut.

The post Is Your Attorney Lazy or Willing To Fight For You? appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.

3 weeks 4 days ago

Saundra Latham writes a good review of the best credit counseling agencies of 2018 in The Simple Dollar website.  She correctly points out that the best credit counseling firms to handle a Debt Management Plan are:

Generally speaking, if you are signing up for a Debt Management Plan to consolidate your debts into a payment plan managed by a certified credit counselor that provides lower interest rates and financial counseling, you want to go with an agency certified by the National Foundation for Credit Counseling (NFCC).  The NFCC has the toughest certification standards in the credit counseling industry and it is simply unwise to go with an agency not certified by them.
What is lacking in Latham’s review,  however, is any statement of whether these plans actually work. Does credit counseling actually work? Do creditors really accept these plans and what is the success rate?
The one big benefit of credit counseling.
There is basically one major benefit of credit counseling programs–they get credit card companies to reduce the interest rate.  That’s the big trick.  If you can pay back debt at 5% to 10% versus 20% to 30% on credit cards, you pay back the debt faster and with fewer dollars.  Yes, credit counseling agencies go through a dog and pony show of reviewing your monthly budget and making suggestions like using coupons to shop, etc, but that is all for show.  To be honest, there isn’t a whole lot of real counseling in credit counseling agencies.  The name of the credit counseling game is to enroll new customers into a payment plan.  That’s how they make their money.  The counseling is generally lame, but the interest rate reductions are real and powerful.
But do these plans work?  Generally no.  Most credit counseling programs fail.  The success rate is about 25% to 40%. Cambridge Credit Counseling, Green Path and Incharge Debt Solutions are recommend because their success rates tend to be higher, around 40%.  But that still means that 60% to 75% of the plans fail. Would you agree to a surgery if the doctor told you that the survival rate was only 25%?

Credit counseling is a partial solution–it only handles some of the debt. A partial solution is really no solution at all.

Why do credit counseling plans fail?
Credit counseling plans fail for a lot of reasons. First, most folks cannot afford the payment even though the interest rates are lower. Second, there is no flexibility to the payment.  If you miss a single payment the entire program crashes and you must start over. Third, many creditors and most collection agencies refuse to participate in the plan. That means that some of your debts are paid in the plan but others continue to sue and garnish wages thus causing the plans to fail. Credit counseling is a partial solution–it only handles some of the debt. A partial solution is really no solution at all.  So, credit counseling generally works well for folks who mainly have credit card debt and where their basic problem is overspending and lack of budgeting, but credit counseling does not work well for folks whose general problem is that they lack sufficient income and their debts tend to be more collection agency debts instead of mainline credit card debt.  Credit counseling programs just are not equipped to handle garnishments, junk debt buyer lawsuits and local collection agencies.

Credit counselors need to acknowledge that their signature offering — the debt management plan — doesn’t work for everyone.”  Liz Weston

Even financial guru Liz Weston has written that there is a lack of real counseling going in in the credit counseling industry.  (See Do Debt Management Plans Work?)  According to Weston, too many folks are enrolled in debt management plans without even suggesting that bankruptcy might be a better option. Those credit counselors are suppose to be providing professional counseling advice, but Weston rightfully criticizes the industry as emphasizing profits over people.
The bankruptcy option.
The Bankruptcy Reform Act of 2005 required that every person filing bankruptcy take a credit counseling course before their case could be filed. The idea was that a lot of people would chose not to file bankruptcy if they could just speak with a credit counselor about payment options first. That idea proved to be wrong, terribly wrong. I have not met a single person who decided not to file bankruptcy after taking the required credit counseling  course–not one single person in the thousands of people I have represented since 2005.
But what if those folks deciding to enter credit counseling had to visit with a bankruptcy attorney first? I wonder how many would chose to file bankruptcy instead? What if a people really had ALL their options explained, not just some of them? I would guess that upwards to 40% to 50% of those entering debt management programs (and probably 80% of those entering debt settlement programs) would opt to file bankruptcy if they had the opportunity to compare the programs side by side.

What consumers lack is access to independent debt counseling professionals whose income is not dependent on the type of debt solution they recommend.

People in financial turmoil are lost. It has become impossible for consumers to figure out who is genuinely an an honest credit counselor from those who are wolves in sheep clothing pretending to be nonprofit counselors. Even the real credit counselors are trying to fatten their revenues by enrolling customers into payment plans when it is perfectly obvious that they would be much better off in the long run by declaring bankruptcy.  What consumers lack is access to independent debt counseling professionals whose income is not dependent on the type of debt solution they recommend. And going forward, that is the type of consumer law firm we are trying to become. More on that later.
Image courtesy of Flickr and GotCredit.

3 weeks 5 days ago

Why Was It Legal For a Creditor To Take My Tax Refunds?
tax credit(The following is Arizona specific) Most people do not understand that if a creditor sues and obtains a judgment they can take your tax refunds and money in a bank account, to name just a few items.   I know this does not sound fair – especially when the creditor is taking your child care or earned income credits.  These are monies you need in order to pay rent, buy food, repair your car or take care of health care needs.
Can a creditor really take the money I need to pay rent or buy food?
Each state has certain items “property” that is exempt (creditors cannot take).  Unfortunately, Arizona does not protect child care credit or earned income credits.  See article in the Arizona Republic (AzCentral).  So, if a creditor has the ability to get into your bank account they can take everything except $300 (unless your income is social security or VA benefits – but there are rules governing how to protect those funds).
If I file bankruptcy will I still lose my tax refunds?
tax creditUnfortunately, PROBABLY, assuming you use the Arizona exemptions in your bankruptcy.  The saddest story I hear is when someone files for bankruptcy not understanding they will lose their tax refunds (money they desperately need in order to survive).   Read the AzCentral article about two wonderful families who faced this problem (just two of thousands who face this every year).  One family knew they would lose their refunds because they hired a bankruptcy lawyer so they were not surprised.  Sadly the other family did not know because they filed bankruptcy on their own and never talked to an experienced bankruptcy attorney (most offer free consultations).  That family is living on less than $1,400 per month for a family of 5 and really, really needed the tax credits.  They will lose their entire tax refunds of $9,000 (the cost to hire a great attorney is approximately $1,500).
Unlike most other states, Arizona law is very old and does not protect these tax credits.  The law needs to be changed in order to protect all Arizona families.
tax creditI have a group of wonderful volunteer bankruptcy attorneys (Arizona Consumer Bankruptcy Counsel) who want to change the Arizona law and help protect all Arizona families (even if they do not file for bankruptcy protection).  Please contact me if you know a legislator who cares about families or stories that we can share with a legislator in order to change the law.

The post Why Did the Creditor Take My Tax Refund – Arizona Law appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.