Archive for July, 2009

When I visit with clients about filing bankruptcy, nearly everyone I meet  is at the end of their financial rope and are resorting to bankruptcy when all hope of recovery is gone.  In much of my reading on bankruptcy there seems to be a new approach to bankruptcy, what it offers, and how the Bankruptcy Code can be used as part of an overall strategy in becoming and staying financially stable.  Understanding the bankruptcy process, its benefits, its consequences and how local state laws protect  your assets are all necessary to not only recovering from financial difficulties, but protecting your assets…

The U.S. Bankruptcy Court has released numbers for the first half of 2009 and Chapter 7 bankruptcy filings are up 102% in Maricopa County when compared with the same time period last year.  Likewise, Chapter 13 filings are up 52% in the Valley when compared to 2008.  Overall statewide bankruptcy filings in Arizona are up 88%. While most consumers file either a Chapter 7 or Chapter 13 bankruptcy case, reports show that Chapter 11 filings have almost doubled since the beginning of last year.  Traditionally Chapter 11 filings were for businesses that were seeking to reorganize, while Chapter 13 was an…

During the bankruptcy process all assets owned by the filer must be disclosed to the Court. Included in this list of assets that must be disclosed are any interest in funds that are held in a retirement account. Many are concerned that if they decide to file bankruptcy, that they will lose their retirement funds that they have accumulated in their 401(k) plan or their I.R.A. However, most retirement accounts are fully exempt, and thus protected, under both federal and state law. Specifically, the Bankruptcy Code protects funds held by the debtor in 401(k) plans as well as any funds…