Worry About Taxes and Bankruptcy

At this time of year many Arizona home owners start to worry about filing their taxes. If you add to that a worry about filing for bankruptcy, then it is time to consult with an experienced bankruptcy lawyer. The Frutkin Law Firm, PLC, in Phoenix, AZ, has decades of experience helping Arizona residents sort through the bankruptcy process.

Part of the process of filing for bankruptcy in Arizona is knowing when to file, or choosing the most advantageous time to file for bankruptcy. If you owe significant taxes OR if you anticipate a tax refund, both can be a factor when filing for bankruptcy whether it is Chapter 7 bankruptcy or Chapter 13 bankruptcy.





Facing the government with both tax problems and a bankruptcy filing can be overwhelming. It makes sense to have seasoned bankruptcy attorneys by your side.

Is Filing for Bankruptcy Worse on my Credit Than Foreclosure?

Yes, bankruptcy is worse than foreclosure. Both a bankruptcy filing and a foreclosure will damage your credit score and credit worthiness, but you should not be unduly concerned about this. Because the truth is that your credit rating is probably damaged already if you qualify for bankruptcy protection through Chapter 7 bankruptcy or Chapter 13 bankruptcy.

After bankruptcy or foreclosure you can begin to rebuild your credit worthiness with positive steps by the time your Chapter 7 bankruptcy, Chapter 13 bankruptcy or foreclosure is resolved. Without the bankruptcy filing, your damaged credit could continue for years without an opportunity to begin rebuilding.



An experienced bankruptcy law firm is necessary to help you choose between bankruptcy and foreclosure and to help guide you through the bankruptcy process. It is possible to minimize the damage and begin to put the financial hardships behind you. Filing for bankruptcy in Arizona is less frightening with an experienced bankruptcy law firm, such as The Frutkin Law Firm, PLC, in Phoenix, AZ, by your side.

HOA Dues Do NOT End with Bankruptcy

In Arizona, filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy will discharge your overdue homeowners association dues, but it will NOT stop your obligation to pay future HOA dues. Even if you no longer live in the home.

The HOA dues are your legal obligation until the home is legally owned by someone other than you – be it bank or new family. In today’s complicated housing market and financial mess, completing a foreclosure or short sale can take months or even years after a bankruptcy has been discharged.

If your fees are several hundred dollars each month or each quarter, the amount can quickly become significant debt. Most HOAs will negotiate with former homeowners and the first step is to contact your HOA directly to determine their policies. If negotiation is not successful, the experienced bankruptcy lawyers at Frutkin Law Firm, PLC, in Phoenix, Arizona, may be able to help you.

Are Asset Exemptions the Same for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy?

Generally speaking, yes. The limits for homestead and personal asset exemptions during bankruptcy are the same whether you file for Chapter 7 bankruptcy or Chapter 13 bankruptcy in Phoenix, Arizona. These exemptions allow most debtors to maintain a simple household with reasonable transportation and means of work, and you will not be destitute.

The homestead exemption has a limit that is shared between spouses. The limits on personal assets are for each adult – so the amount can be doubled if you are married. The exemptions allow you to keep a modest home, necessary fuel and food for health, necessary furniture and appliances, reasonable clothing and personal items, reliable transportation, tools of work or trade, necessary medical equipment, personal items such as pets, instruments, recreational equipment and even more.

For a full listing of asset exemptions in the state of AZ, consult with an experienced bankruptcy attorney, such as those at The Discreet Bankruptcy in Phoenix, Arizona.

What it Feels Like to File for Bankruptcy

Filing for bankruptcy takes an emotional toll that is difficult to quantify. There are so many different reasons why bankruptcy might be necessary, but the emotions are almost always the same: shame, fear, and anger. Most people experience all of those feelings individually, overlapping, and repeatedly.

One of the best ways to help quell the emotion is to actively work on the problem. Contacting an experienced bankruptcy attorney in Phoenix, Arizona, is the perfect first step. With knowledge, reason, and patience, your bankruptcy attorneys can help you decide the type of bankruptcy to file, the timing of filing for bankruptcy, and the important steps to take before and after your bankruptcy filing. A bankruptcy attorney with decades of experience can help determine if you should file chapter 7 bankruptcy, chapter 11 bankruptcy, or chapter 13 bankruptcy. Your bankruptcy lawyer will help you understand and navigate the bankruptcy process.

Experienced and caring bankruptcy lawyers in AZ, such as The Frutkin Law Firm, understand the strong emotions involved. By taking an active role in your bankruptcy case, you will not only feel better, but you will be protected from creditor harassment and you will begin to get back on your feet with a fresh financial start.

How Can I Get New Credit After Filing for Bankruptcy?

After filing for bankruptcy in Arizona and having the bankruptcy discharged, you will need to reestablish banking relationships. Begin by finding a local bank or credit union that will allow you to open both checking and savings accounts.

After some months have passed, apply for credit with your local bank. Often local banks are more open to establishing new credit for their banking customers. You may find that the interest rates are high and there may be monthly fees, but you will still want to accept the card. Use it responsibly and your credit score will improve. With the improved score, you will be able to get credit at more favorable rates.

Filing for bankruptcy is a devastating decision and should not be taken lightly. Before you file, consult experienced bankruptcy attorneys such as those at The Frutkin Law Firm, in Phoenix, Arizona.

Are Bankruptcy Judges and Bankruptcy Trustees the Same?

They are not.

Judges are appointed to federal bankruptcy courts for a term of 14 years, often at the recommendation of committees, political officials, or congress.

Bankruptcy trustees are appointed by the US Department of Justice. They are typically attorneys with knowledge of financial matters or are accountants. The US Trustee Office is a separate entity from the courts. The trustees serve as impartial administrators for the bankruptcy petition, overseeing the best interests of both the debtor and the creditor. The trustee arrangement is considered a “watchdog” agency that monitors all bankruptcy cases and identifies fraud.

If you are considering filing for bankruptcy, it is not advisable for you to speak directly with a bankruptcy trustee, and not permitted for you to speak with a bankruptcy judge. Seek the assistance of an experienced bankruptcy attorney such as those at the Frutkin Law Firm, PLC in Phoenix, Arizona.