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Arizona Bankruptcy: Some People Don't Need to File!

By Joseph McDaniel, Esq.

I really enjoyed talking to Susie (not her real name!) just now.

Not only did she have a lovely personality, she didn't need to file a bankruptcy here in Arizona! Neither a Chapter 7, nor a 13, nor the dreaded personal Chapter 11!

Oh, sure, there was a trustee's sale scheduled. But there was only the one mortgage! So there's a good chance that the Arizona Anti-Deficiency Statute will apply, and the large deficiency after the trustee's sale will simply...vanish!

But wait! There's more!

While there may have been a few credit cards, the credit cards had not been paid in a long time. And they were fairly small. And did I mention that they had been "seasoned" with nonpayment for quite some time?

See, if you try to negotiate with a credit card company when you are current, all you can hear is "Peggy" laughing his head off in the background.

But, if you're lucky, after a year or so of non-payment, if the debt is modest and the bank doesn't have personal animus toward you, the bank is often willing to settle for a very small dollar figure.

So I was a happy boy!

See? This is my happy face!

Full post as published by Arizona Bankruptcy Attorney Blog on February 08, 2011 (boomark / email).