Are you considering filing for bankruptcy in Arizona? There are a few basic rules you should become familiar with as you look further into this debt relief option. Our Phoenix bankruptcy attorneys put together the following to further explain what these rules are and how they could affect you.
What Exactly Are the R.T.S. Rules Regarding Bankruptcy for Arizona?
R.T.S. is an abbreviated way to refer to bankruptcy rules regarding repaying debt, transferring assets or selling assets.
Repayments, Transfers or Sells
As much as it might seem like the right thing to do, DON’T repay debts to family or family members, or transfer property to them, before speaking with our Phoenix bankruptcy lawyers.
Why? Bankruptcy courts will take into account all of your assets – including money or property you have given to friend or family members. Depending on the length of time between the repayment or property transfer to a friend or family member, the money or property may have to be given back to the court so that it can be redistributed equally to your creditors.
Another important aspect to keep in mind is the importance of transparency and accuracy. When in doubt, give full disclosure and do not try to hide or “shield” your assets or any actions you’ve taken before filing for bankruptcy.
Examples include following:
- You must disclose the sale or transfer of assets in the two years before bankruptcy.
- It’s often perfectly acceptable to sell assets prior to bankruptcy for their true value. Generally, it is perfectly acceptable to sell assets IF you are selling them for fair market value. You should speak with one of our bankruptcy attorneys before selling or transferring an asset.
- You may not sell or transfer property in an attempt to shield it from bankruptcy. If you “sell” an asset for less than fair market value or transfer property to an “insider,” such as a close friend or family member, the court will generally consider the sale or transfer fraudulent. The court can seize the asset or require that an equivalent value be paid to the court for the benefit of your creditors. Again, you should always speak with one of our experienced bankruptcy attorneys.
Arizona exemptions generally determine what assets and property are protected from your creditors and the bankruptcy court for cases filed in Arizona with certain exceptions.
Types of Property
Generally, Arizona residents can protect the following types of property from creditors and the bankruptcy court:
Your house. In Arizona, you can exempt up to $150,000 of your home or other qualifying property.
Personal property up to a certain dollar limit. Such as up to $500 in clothing or up to $6,000 in furniture and other household amenities
Vehicles. Up to $6,000 in value for most debtors, or up to $12,000 for disabled or elderly debtors
Call one of our Phoenix bankruptcy lawyers to plan your bankruptcy filing to ensure the process goes smoothly and protect your assets.
In a Financial Bind? Phoenix bankruptcy attorneys can help!
Get help starting over and putting your life back on track! Contact our highly skilled Phoenix bankruptcy attorneys directly at 602-667-7777 to learn more about your financial options.