Rosenstein Law Group

There is a pivotal scene in the hit movie Jerry Maguire, where Tom Cruise’s character, which was modeled after one of the most famous sports agents of all time, Leigh Steinberg, gets drunk as a result of losing his biggest clients, his job, and his girlfriend all in one fell swoop.

Not known for being realistic, Hollywood then shows him sobering up the very next day, getting back to work, and as a poster-child for “it’s never too late,” he eventually finds the real meaning in his life, getting a new girlfriend, and a contract for the only loyal client he has left.

While the movie may be based on the real life of Leigh Steinberg, it differs in two key aspects: Steinberg didn’t sober up after only one night of drinking, and eventually he found himself with no NFL clients at all.

At one point the most prolific NFL agent of all, representing half of all the starting quarterbacks, and representing the first pick in the draft 6 of 7 years, Steinberg hasn’t represented a single NFL player in 5 years. He also doesn’t live in a lavish house on the Orange County coast as Tom Cruise’s character did, or work in a Newport Beach office with a view of the ocean.

The much harsher reality is that nowadays, Steinberg lives in a leased townhouse, and works in a small building in the industrial park area of Irvine, California. True to the movie, although a few years delayed, he is trying to find the true meaning in his life, working through a recent bankruptcy, hoping to one day represent athletes again.

If the ending of Jerry Maguire had been true to life, it would have shown a much bleaker picture, of Steinberg suffering a string of business setbacks, arrests due to alcohol, and a divorce, leaving him broke and drunk.

According to Steinberg, he used drinking as a means to escape his problems. As is usually the case, however, he found that it only served to make his problems worse. He went on to say “I found out a very dangerous thing. It is legally permissible to consume alcohol in the light of day. At the end, I got to the blackout point, where I just couldn’t remember things. I was unreliable. I could never tell what was going to happen.”

The worst for Steinberg came in March of 2010. It was at that point that he agreed to start attending a 12-step recovery program that he had previously tried and failed at prior points in his life. Although he won’t release details due to the anonymous nature of the program, he currently attends regularly, has a sponsor, and works all the 12 steps. He goes on to say that he has been sober for over 700 days, and that his 2-year birthday will be on March 21.

There had been a lot of whispers and rumor of his health, be it physical or financial, and he addressed them all last month when he released a statement explaining how alcoholism had caused many of his problems. At the same time, he filed for bankruptcy.

According to Steinberg, going public was extremely liberating. He went on to say “I am an alcoholic today and will be for the rest of my life. I don’t want anyone else to go through the pain and denial that I did. You only live this life once. I still think I can be of service.”

Steinberg openly admitted that his alcoholism has caused a lot of emotional and financial harm to people he cares about, but also that he has friends who have stuck by him through this entire process.

One of those friends is June Jones, longtime client and friend, and SMU football coach. When asked about Steinberg, he says “Leigh always had the athletes’ best interests in mind. He was so different from everybody else. He’s a special guy. He’s got a big heart.”

According to Steinberg, he avoided filing for bankruptcy as long as possible out of a moral obligation he felt in regards to paying his debts. He also said that ultimately it was necessary, and that while the proceedings have been embarrassing at times, the most important thing is his sobriety, and his ability to be of service to others.

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Do you owe money to your bank and have a savings or checking account with the same institution? If your answer was “Yes,” then you need to know that the bank may apply the money in your savings or checking accounts to pay down or pay off the loan you took from it. As your Arizona bankruptcy attorney will tell you, this is a common occurrence as many individuals borrow money from their banks for car loans, RV and boat loans, personal loans, and mortgage loans.

Although it may be a comforting concept, your cash isn’t really sitting in the bank vault. When you give the bank your money, you become a creditor of the bank and it has to pay you back. When you owe the bank money, you become a debtor of the bank. So when an account holder’s loan goes into default, the bank will take action on its behalf to remedy the situation.

Understanding the Bank’s Right of Setoff

As explained by our Arizona bankruptcy attorney, this right of setoff allows the bank to take the money it is holding and pay down the debt owed to it without further notice or consent from the account holder. An account holder usually finds out about the bank’s set-off after the money is simply missing from the accounts.

What action can you take? When you owe money to the bank where you do business, an Arizona bankruptcy attorney will advise you to consider opening a separate bank account at a different institution and deposit your funds there – a bank where you have not done business before and where you do not owe money.

Do not close the accounts at the bank where you are a debtor without first discussing the loan status with your Arizona bankruptcy attorney. You could make matters worse and violate the covenants in your loan agreement by closing your accounts there. Instead, maintain the minimum balance required on those accounts. But start depositing your paychecks and other checks into the new bank account that is free from setoff. Remember, as soon as you borrow money from any bank, any accounts you hold with that bank may be subject to setoff by that financial institution.

Arizona Bankruptcy Attorney Prepares Debtor for the Trustee’s Role

Filing for debt relief under the U.S. Bankruptcy Code necessarily requires that the debtor surrender control over his or her debts to the court and give the reins to the trustee assigned to administer the case. This doesn’t mean that the petitioner is prohibited from paying for necessaries such as food, utilities, and rent without the court’s permission. Filing for bankruptcy does mean that the debtor must disclose all payments to creditors made in the 90 days preceding the bankruptcy. And if the payment was made to an insider, such as a family member, then the debtor must disclose all of those payments made in the previous year. What we are referring to now is the debtor’s preferential treatment of one creditor over another.

Those payments made to creditors and insiders in the period preceding the bankruptcy are scrutinized by the case trustee. The case trustee is looking for extraordinary payments that could be preferential. An Arizona bankruptcy attorney would describe a payment to a creditor as potentially preferential if it put that creditor in a better financial position than it would have been in the bankruptcy case absent that payment.

Bankruptcy is about fairness to equally situated creditors, so the debtor is not permitted to pick and choose one creditor over another without evidence of an extraordinary circumstance. The petitioner’s $5,000 payment to Uncle Harry six months before the case is filed, for example, will certainly involve further investigation into the circumstances surrounding that payment by the case trustee.

At the Rosenstein Law Group, we know that every individual debtor’s circumstances are unique. When representing a Chapter 7 or Chapter 13 client, our Arizona bankruptcy attorney will analyze the nature of every debt and creditor, determine any potential bank setoff, and examine every insider payment so that the client is fully prepared for the case trustee’s administrative course. When you need experienced bankruptcy representation and advocacy, contact our offices any day of the week 24/7, and arrange for your free initial consultation.

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In this post, we hope to take some of the mystery out of the bankruptcy judicial system.

Federal Practice for Arizona Bankruptcy Lawyers

U.S. Supreme Court. In the federal court system, we start at the top with the U.S. Supreme Court’s Chief Justice and eight Associate Justices. At its discretion, each year the U.S. Supreme Court will decide a limited number of cases involving federal questions and the U.S. Constitution. Although it may sound good to say the case will be appealed “to the Supreme Court if necessary,” it is very unlikely to occur.

U.S. Courts of Appeals. The next highest courts in the federal system are the U.S. Courts of Appeals. Within the appellate courts, there are 12 regional circuits – Arizona is in the Ninth Circuit Court of Appeals. We share the Ninth Circuit with Alaska, California, Guam, Hawaii, Idaho, Montana, Nevada, Northern Mariana Islands, Oregon, and Washington state.

Within a few of the U.S. Courts of Appeals are special Bankruptcy Appellate Panels (BAPs), one of which is in the Ninth Circuit. We are fortunate to have a BAP in our circuit. There are six bankruptcy judges appointed to serve on the Ninth Circuit’s BAP; one of those judges is from Arizona’s district. (To avoid any appearance of bias, an Arizona judge on the BAP will not hear or decide a case coming from his or her home court.) Three-judge panels review certain decisions appealed from a decision of the bankruptcy court. The panel judges do more than sit on the BAP; they are also sitting bankruptcy judges in their respective districts. When Arizona bankruptcy lawyers appeal a bankruptcy decision, the appeal will either be taken to the district court (discussed below) or to the Ninth Circuit’s BAP. Beyond those two reviewing courts, appeals of right are also made to the Ninth Circuit Court of Appeals. In general, Arizona bankruptcy lawyers understand that bankruptcy appeals are final with the decision of the appellate court.

U.S. District Courts.  Arizona bankruptcy lawyers refer to the U.S. District Courts as the federal trial courts. (Compare that to Arizona’s trial courts in the state judicial system, which are the county Superior Courts.) There are 94 districts, and some states have more than one. Arizona, however, has only one federal judicial district.

When Arizona bankruptcy lawyers file their clients’ Chapter 7 Liquidation petition, Chapter 13 Wage Earner petition, or other chapter relief petition, they file them with the U.S. Bankruptcy Court for the District of Arizona. Let’s dispel another myth right here – there are no state bankruptcy courts. The U.S. Bankruptcy Court is a special division of the U.S. District Court. The only courts that can entertain a bankruptcy, then, are the federal courts. Because bankruptcy is such a specialized area of law with its own bankruptcy rules of court, we have a unique federal system designed only to hear those cases. The federal bankruptcy judges have authority to hear all chapter relief cases. The case trustees assigned are Chapter 7 trustees, Chapter 13 trustees, and so on, because of the special knowledge required to administer each form of debt relief.

Choosing the Best Arizona Bankruptcy Lawyers in Scottsdale

Whether you seek debt relief in a Chapter 7, Chapter 13, or some other chapter of the U.S. Bankruptcy Code, the Arizona bankruptcy lawyers involved in the case will be members of the State Bar of Arizona and admitted to practice in the federal courts. At the Rosenstein Law Group, Arizona bankruptcy lawyer Brian M. Blum is admitted to practice before the U.S. District Court for the District of Arizona and the U.S. Bankruptcy Court for the District of Arizona, as well as all courts in the state judicial system.

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Continuing in the footsteps of Donald Trump, Walt Disney, Larry King, Francis Ford Coppola, and Abraham Lincoln, Gary Busey has filed for bankruptcy to allow himself a fresh start.

According to bankruptcy documents, Busey’s lawyers have listed out all of the assets he’s collected over 67 years, some of which are surprisingly valuable.

In addition to his more normal possessions, such as clothes, a dining room table, and a coffee maker, he has a much stranger assortment of things that are the type most parents nag their children to get rid of. It’s important to use these examples and apply them to yourself if you file for bankruptcy, since things often have values that you don’t realize.

Among Busey’s stranger possessions are a collection of 300 old VHS tapes, 200 cassette tapes, five pairs of moccasins, four clay vases, two decorative tepees, a small collection of oil and acrylic paintings, a bull’s skull, a small bald eagle figurine, bows and arrows, and 3 American Indian-style bowls. All of these together are valued at $1,000.

Busey placed a value on his clothes in the amount of $2,000, and clothing accessories such as a bolero necklace and an eagle’s talon on a fabric strap, add up to $150.

He is claiming $1,800 worth of everyday household items, including furniture. Also, worth $3,000, is the real collection among his possessions: 2 surfboards, a mountain bike, a boogie board, rollerblades, a broken pellet gun, 2 electric guitars including a Fender Stratocaster, 3 acoustic guitars, 2 tambourines, an amplifier, and an old Nikon camera.

Unfortunately, his life insurance policy and his company, Rising Star Inc, do not currently have any value, and are both listed at $0.

In addition to Busey’s $500k in debts, most of which are government debt, Busey’s income amounts to only $19,700, and his expenses come to $22,600 a month, which includes asthma medication and daycare for his son.

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It’s extremely common knowledge that the economy is tough right now. Many people have accepted financial troubles, and done their best to deal with them. One particular group of people who don’t expect to be hitting financial trouble, however, is graduating students.

Unfortunately, a national bankruptcy lawyers’ group warns that many graduates are experiencing difficulties obtaining jobs in their respective fields, and coupled with rising amounts of student loan debt, it could spell an economic bomb that rivals the recent mortgage crisis.

The National Association of Consumer Bankruptcy Attorneys recently filed a report saying that over 80% of the 860 bankruptcy lawyers they surveyed say that potential bankruptcy clients that have student loan debt has increased “somewhat” or “significantly” in the last 3-4 years.

Over a third of all respondents said that the number of clients with student loans has increased by 25 to 50%. A quarter of respondents said the number has increased by more than 50%.

Unfortunately, student loan debt is not usually forgiven in bankruptcy filings. Mark Kantrowitz, the publisher of finaid.org, says “it’s incredibly difficult to get student loans discharged in bankruptcy.”

While individuals struggling to repay their debts can often get repayment assistance through their credit card companies or other lenders, private student loans don’t usually offer any similar flexibility.

Many bankruptcy and financial aid experts are interested in seeing legislation allow private loans to be discharged in bankruptcy proceedings, and keep federal loans as they are, since there are good ways to help those borrowers.

Lindsey Graham, a U.S. Senator, says that the issue is being tracked as they explore avenues that would be beneficial to borrowers, lenders, and taxpayers.

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In bankruptcy, there are certain debts that are statutorily defined as non-dischargeable obligations. These specific types of obligations have been given special treatment for public policy reasons. When the decision had to be made, the U.S. Congress determined that the debtors’ needs for a clean financial slate did not outweigh the needs of certain kinds of creditors.

Our AZ bankruptcy attorney discusses some of those non-dischargeable debts in today’s post. When you learn the nature of these obligations, you’ll understand the public policy need to protect special creditors from a discharge of their claims in bankruptcy.

AZ Bankruptcy Attorney on Common Exceptions to Discharge

When a creditor’s claim is excepted from discharge, the bankruptcy judge does not have the authority to discharge that debt. When you meet with your AZ bankruptcy attorney, he will tell you immediately whether you have any debts that may be non-dischargeable in bankruptcy under the U.S. Bankruptcy Code. In general, it does not matter which chapter relief is sought – there are several specific non-dischargeable debts that are excepted in all Chapter 7, Chapter 11, Chapter 12, and Chapter 13 filings (exceptions are more limited with Chapter 13, however). Here are a few common exceptions to the bankruptcy discharge:

1. Domestic Support Obligations (DSOs). If the debtor is under a court order to pay child support, spousal maintenance (or alimony), or some form of family support or maintenance by another name, then the debt is excepted from discharge. 11 U.S.C. § 523(a)(5).

2. Certain Taxes.  In some instances, the debtor’s tax returns were not filed timely. In other instances, the debtor filed fraudulent tax returns or attempted to evade taxes. Determining whether your particular tax obligation is of the kind and nature that is completely non-dischargeable in bankruptcy is best left to your AZ bankruptcy attorney. 11 U.S.C. § 523(a)(1).

3. Fraud and False Pretenses.  When a debtor obtains “money, property, services, or an extension, renewal, or refinancing of credit by false pretenses, false representation, or actual fraud,” then the creditor is protected and the debt is non-dischargeable in bankruptcy. 11 U.S.C. § 523(a)(2).

4. DUI/DWI that Caused Personal Injury. In the event the debtor caused an accident and personal injury while intoxicated or under the influence, the creditor is protected and the obligation is non-dischargeable. 11 U.S.C. § 523(a)(9).

5. Educational Loans. The debtor’s student loans are non-dischargeable debts in bankruptcy unless the loan imposes an undue hardship on the debtor and the debtor’s dependents. An AZ bankruptcy attorney will determine whether the debtor’s educational loans are so burdensome as to impose an undue hardship on the debtor and his or her dependents. 11 U.S.C. § 523(a)(8).

6. Omitted Debts from the Petition. When the debtor fails to include a creditor’s claim in the requisite schedules that accompany every petition, and doing so interferes with that creditor’s claim, then the creditor is protected and the obligation may be excepted from discharge. So to those individuals who may think there is no harm in omitting certain creditors from the petition schedules, we strongly urge you to think again. 11 U.S.C. § 523(a)(3).

AZ Bankruptcy Attorney:  Not all Exceptions from Discharge Are Automatic

One last thought from the AZ bankruptcy attorney on debts that are excepted from discharge. Some of the exceptions from discharge are automatic, meaning the affected creditor need take no further action to protect the debt. For example, if child support (a type of DSO) is listed in the debtor’s Chapter 7 or Chapter 13 schedules, the child support obligation will follow the debtor beyond bankruptcy. There is no further action that the creditor-parent or creditor-guardian need take to protect the child support.

Other exceptions from discharge must be requested by the affected creditor – the creditor must take action, usually within 60 of the meeting of creditors,to protect its claim from discharge. When the creditor requests exception of the claimed obligation, the court then renders a decision based on the evidence as to whether the debt is excepted from discharge (and stays with the debtor after bankruptcy) or is not excepted from discharge and is eliminated.

Filing for bankruptcy is not something that most people have any particular knowledge of, and there are many pitfalls for the unwary. If you are contemplating bankruptcy, then seek an experienced AZ bankruptcy attorney early on. At the Rosenstein Law Group, our experienced AZ bankruptcy attorney is Brian M. Blum. Contact us when you need help with your debt problems. We have solutions.

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There have been encouraging signs in regards to the economy lately, and it seems like it is being represented more in the number of bankruptcy filings than anything.

Recent figures released by the U.S. Bankruptcy Court in Phoenix state that for the month of January 2012, there were only 1,321 bankruptcies in the Phoenix area, which is the lowest that monthly number has been since January 2009.

Compared to January 2010, the 2011 number is down over 33%, which is the largest percentage drop seen since October 2006. Even more than that, year-over-year, bankruptcy filings have fallen for 12 consecutive months now.

The entire state of Arizona had 1,795 filings total, which is a 30% decrease, and the lowest number that the state has seen since January 2009.

Many bankruptcy attorneys are feeling the pressure, and are having to look at other ways to practice. Joe Volin, an attorney in Mesa, said “If it keeps up like this, I’m going to have to start writing more wills. It has definitely slowed.”

Part of the reason for this sharp decline in bankruptcy filings is the recovering economy, which has shown recent encouraging signs. The current unemployment rate is 8.3%, down from the relatively-high 9.1% seen in the later part of summer. While not the only deciding factor, unemployment is historically one of the main reasons people file for bankruptcy, and as such it’s not surprising to see the 2 number declining together.

Many studies have also shown that bankruptcy trends tend to follow trends in consumer debt, which has done nothing but fall since 2008, until just recently. Joe goes on to say that “the current filing downward trend could still reflect the pronounced debt decline of a year or two ago.”

Experts are warning against being too optimistic though. They state that while the decline in bankruptcies is certainly welcome, it doesn’t automatically mean that Arizonans are faring better. Case in point, a recent study released by the Corporation for Enterprise Development shows that Arizona is ranked in 45^th out of the 50 states in regards to household financial security.

The author of the report said “Many of Arizona’s residents have jobs, but they lack adequate savings or other assets to cover expenses for three months if they lose a steady income.”

Arizona isn’t the only place where bankruptcies became less common, either. For the entire United States, the number of bankruptcies declined by 14% in January, so while Arizona has a significantly larger decline, at least it’s just a slightly exaggerated national trend instead of an isolated case.

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Foreclosure. The very word can send chills down the most stalwart spine. To a Scottsdale bankruptcy attorney, foreclosure is one of the primary reasons individuals seek debt relief under Chapter 7 and Chapter 13 of the U.S. Bankruptcy Code, and for good reason – for the month of November, Arizona foreclosures increased from the same time last year. This is according to RealtyTrac which tracks foreclosure trends across the country.

Scottsdale Bankruptcy Attorney Clarifies New Foreclosure Statistics

Our Scottsdale bankruptcy attorney pointed to RealtyTrac’s statistics on the rate of Arizona foreclosures for month of November 2011 – that is, 1 in every 256 Arizona housing units encountered a new foreclosure filing. Arizona continued to have the third highest rate of foreclosures in the country, although foreclosures across the nation were down 14% from a year ago.

RealtyTrac’s analysis began with the total number of housing units in each county as derived from 2010 U.S. Census data. To calculate the foreclosure rate, the total number of housing units in each county was divided by the total number of properties in that county to receive foreclosure filings in November. The result was simply expressed as a ratio of foreclosure filings to housing units.

When broken down by Arizona county, the highest rate of foreclosures to housing units occurred in Pinal County with one in every 137 housing units receiving foreclosure filings. That was followed by Santa Cruz County with 1 new foreclosure for every 200 housing units. Our Scottsdale bankruptcy attorney noted that the greatest number of new filings occurred in Maricopa County, however, with 7,244, which represents 1 in every 219 housing units in new foreclosure. Next was Pinal County with 1,078 new foreclosures, followed by Pima County with 920 new foreclosures (1 in 466). With only 6, Apache County had the lowest rate of new foreclosures for the month of November (that is 1 new foreclosure in 5,457 housing units).

Foreclosure Debt Relief Through a Scottsdale Bankruptcy Attorney

When an individual files for personal bankruptcy protection under Chapter 7 or Chapter 13, any foreclosure action against the debtor will be stopped by the automatic stay, at least temporarily. This gives the petitioner sufficient time to evaluate options with his or her Scottsdale bankruptcy attorney and decide on a course of action that is best suited to the debtor’s goal of a fresh start. In a Chapter 13 bankruptcy filing, the debtor’s wage earner reorganization may involve a plan to get the mortgage back on track so the debtor’s family can remain in the home. On the other hand, the Chapter 13 debtor may decide to get out from under the mortgage entirely, surrendering the home to the creditor so that foreclosure proceedings may continue.

At the Rosenstein Law Group, Brian Blum is our Scottsdale bankruptcy attorney. If your Arizona home is in foreclosure, then you need immediate debt protection from your mortgage lender. To get the legal representation you need, call us anytime 24/7 at 480-305-0015 or email our office for a free consultation.

Source: RealtyTrac Foreclosure Trends

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If you’ve been following any of the previous entries, then you will know they’ve been focused on tips to help you get out of debt. This entry will be the fourth and last in that series.

Having debt over your head can be extremely stressful. Many times, people don’t fully realize just how stressful it is until they are out of debt, and can feel the relief. With that in mind, here are 3 more tips to help you get to that debt-free status.

Slowly Chip the Debt Away

The true cost of debt is the interest charged each month. If you have 2 credit cards, each with a $2,000 balance, and one has a 9% interest rate and the other has a 24% interest rate, then every single month you’re paying over $15 in interest alone to the 9% account and $40 in interest alone to the 24% account. In order to get out of debt the quickest, you will need to focus more on the “more expensive” account, which in this case would be the 24%. To make it easier, it’s a good idea to make a list of all your accounts and their corresponding interest rates, and pay off the highest interest account first. Then when it’s paid off, stop using that card! You might not want to cancel the card and chop it up quite yet, since it still can be useful in emergencies, but absolutely don’t use it for everyday purchases any more.

Don’t Be Afraid to Give Up Some Toys

Getting out of debt can be looked at as a sort of financial rebirth. Many times, you will have to make a touch decision, such as getting rid of something that you love. The harsh truth is that the emotional pain from selling something important is a lot less than the financial damage holding onto those things can do. If you have a particular item that you’re having a hard time letting go of, just remember that right now you’re focusing on your future. Ask yourself if that one item is important enough to potentially prevent you from accomplishing your goal.

Keep Everything in Perspective

Getting out of debt is a very involved process and will require focus and dilligence from you and your family, but don’t let it consume you. You will be required to make some sacrifices, but remember why you’re doing all of this – for your family, your relationship, and your future. Even if it sets your plans back a little bit, it’s important to set time and money aside so that you can still enjoy life with your spouse and kids, rather than making it an entirely laborious process. Don’t allow your debt to rule over you.

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Perhaps the most intimidating bankruptcy form for clients of Phoenix bankruptcy lawyers (well, maybe after the Means Test) is the Statement of Financial Affairs. This bankruptcy form presents a series of questions intended to ferret out every remaining detail of the debtor’s financial circumstances. OurPhoenix bankruptcy lawyers are discussing this financial statement today so that you have more time to get your files organized and better prepare yourself for the requisite disclosures.

Your Phoenix Bankruptcy Lawyers Prepare Your Schedules

Before Phoenix bankruptcy lawyers complete the Statement of Financial Affairs (SOFA) for the client, they’ll prepare the Schedules that accompany a Chapter 7 Liquidation, Chapter 11 Reorganization, and Chapter 13 Wage Earner bankruptcy. For quick reference, here are the schedules thatPhoenix bankruptcy lawyers will complete with the client’s information:

 Schedule A – Real Property

Schedule B – Personal Property

Schedule C – Property Claimed as Exempt

Schedule D – Creditors Holding Secured Claims

Schedule E – Creditors Holding Unsecured Priority Claims

Schedule F – Creditors Holding Unsecured Nonpriority Claims

Schedule G – Executory Contracts and Unexpired Leases

Schedule H – Codebtors

Schedule I – Current Income of Individual Debtor

Schedule J – Current Expenditures of Individual Debtor

 Phoenix Bankruptcy Lawyers Prepare the Client’s SOFA

You might think, after completing ten detailed schedules, that the bankruptcy court has sufficient information to grant relief in the form of a discharge. But the court needs more financial information about the debtor’s situation, all of which comes out in the Statement of Financial Affairs (Official Form 7). This financial disclosure is required of each debtor, including those filing for debt relief under Chapter 7 and Chapter 13 of the U.S. Bankruptcy Code.

You will need to provide details to your Phoenix bankruptcy lawyers going back a year to several years, depending upon the question, to sufficiently answer the twenty-five SOFA questions that we’ve summarized below:

1. What was your income from employment or the operation of a business so far this year and for the previous 2 years?
2. What was your income from any other source going so far this year and for the 2 previous years?
3. What payments did you make to creditors in the last 90 days in the nature of consumer debts and to creditors of non-consumer debts; and to creditors who were insiders going back 1 year?
4. What lawsuits, administrative proceedings, executions, garnishments, or attachments were pending against you in the past year?
5. What property has been repossessed, returned, or foreclosed on in the past year?
6. Has any property been assigned to creditors in the previous 120 days? Has any property been in the hands of a custodian, receiver, or court-appointed official in the past year?
7. Have you received any gifts of value in the past year?
8. Have you had a loss from fire, theft, casualty, or gambling in the past year?
9. What payments, if any, have you made for debt counseling or bankruptcy (including payments to Phoenix bankruptcy lawyers) in the past year?
10. Have you made any extraordinary transfers of property within the last two years? If you had a self-settled trust, was property transferred into it within the last ten years?
11. What financial accounts have you closed, sold, or transferred in the last year?
12. Do you have a safe deposit box?
13. Has any bank or creditor set-off a debt or deposit within the past 90 days?
14. Are you holding any property that belongs to someone else?
15. What were your addresses over the past 3 years?
16. If you resided in a community property state in the past 8 years, including Arizona, then who is your spouse or former spouse?
17. Have you possibly violated any environmental laws on your property?
18. Have you owned an interest in a business enterprise within the last 6 years?
19. Where and with whom have you kept your financial books, records, and statements over the past 2 years?
20. Did you have inventory in your business enterprise?
21. Who are the current partners, officers, directors, and shareholders of the business enterprise?
22. Who are the former partners, officers, directors, and shareholders of the business enterprise?
23. Have any withdrawals or distributions been given to an insider as compensation by this business enterprise?
24. If the debtor is a corporation, then what are the taxpayer IDs of any parent corporation that the debtor was a member of during the previous 6 years?
25. If the debtor is not an individual, then what are the taxpayer IDs of any pension fund the debtor-employer has had over the past 6 years?

Pulling the Statement of Financial Affairs information together is not as difficult as it may seem if you spend some time organizing your records and preparing your answers. Remember that you must answer each question completely and declare under penalty of perjury that your answers are true and correct to the best of your knowledge and belief. Your Phoenixbankruptcy lawyers at the Rosenstein Law Group will be there to guide you through your Statement of Financial Affairs, ensuring that you fully understand what is being asked of you.

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