Regular Post
Written by Canterbury Law Group

What to Do When You are Being Sued for Arizona Credit Card Debt

If a credit card owner has incurred considerable amounts of unpaid bills, the bank or the card agency has the right to sue the cardholder also known as the ‘debtor’. If you are being sued for credit card debt in Arizona, you will first be served a “summons” for a state or federal court case. When you receive the initial notification for summons, the important thing is not to panic. Credit card debt lawsuits go through several phases and there are plenty of ways you can defend yourself effectively with the right attorney. Breathe deeply and relax.

Immediate Action Following Summons

When you have received a summons to court over a credit card debt lawsuit, don’t delay taking action. Most of all, do not ignore the summons. If you do, the suing party (the bank most likely) can obtain a judgment against you in your absence. By ignoring the case, you will not be able to argue your case in front of a judge. The judgment against you could allow the creditor to infiltrate your wages or savings to use as payment towards the credit card debt. Therefore, don’t wait to respond to the summons.  Even if you owe all of the money, you should respond in writing to the court.

If you were served the summons within the state of Arizona, you will be given 20 days to respond. If the summons were served when you were out of state, then you get 30 days to respond. Hire a bankruptcy attorney in Scottsdale during this time to file your case without missing the deadline.

How to Respond to Summons

Once you have an attorney, he or she will guide you through the process of responding to the summons appropriately. There’s a misunderstanding that responding to the summons means showing up in court on the given date. In fact, Arizona law requires defendants in debt cases to file a written response. You must write to the court before the deadline to avoid a default judgment as described above.

How Long will the Case Go On?

This depends on where the lawsuit is filed. In Arizona, there are two types of courts that handle debt-related lawsuits: the Justice Court and the Superior Court. Lawsuits for disputed amounts less than $10,000 go to the Justice Court while anything more than this will be taken to the Superior Court.

Justice Court is a small claims court where the lawsuits tend to move faster. Due to this reason, some creditors file lawsuits stating a limit of $10,000 but without including the interest and other costs. Lawsuits filed in the Superior Court can be complex so trials take longer to conclude. It’s worthwhile to check whether the creditor has filed the case in the right court as part of your defense strategy.

Formulating the Defense Strategy

There are several ways an experienced defense attorney can approach a debt collection lawsuit. Even if the case goes to trial, your lawyer can negotiate with the creditor for a debt settlement. The settlement may involve trying to reduce the total amount owed. If the debt is overwhelming, you might have to file for Chapter 7 bankruptcy, in which case a court may discharge credit card debt. This is not the ideal scenario for a creditor, so the settlement is always an option.

A skilled attorney would also consider more technical aspects of the lawsuit that may offer you relief. For example, an attorney may check whether the summons for the trial was properly served. Other aspects, such as double-checking documentation the creditor provides, will be part of the defense strategy aimed at getting you the best outcome.

Debt, Debt buyers, Debt Collection Companies, debt collectors
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Regular Post
Written by Canterbury Law Group

3 Reasons You Should Get a Prenuptial

While prenuptial agreements are largely popular amongst the rich and famous, average people really ought to consider prenups as well.

Depending on your financial status and ongoing relationship, signing a prenup might be a very, very good decision. Divorce lawyers in Scottsdale recommend the following three reasons to sign a prenup before your wedding day.

CHILDREN

If either you or your spouse has children from a different relationship, it’s critical to sign a prenup to ensure that they will be taken care of in the event of divorce or death. As of 2013, 4 out of 10 marriages included at least one person who had been in a previous marriage.

With a prenup, assets are protected, and an estate plan is carefully laid out for children. Ultimately, you need to consider whether you’d want your assets going to the surviving spouse or directly to your children from a previous marriage. A will is not enough. You want a prenup to solidify the terms of the will.

DEBT

While prenups oftentimes protect wealth, they can also keep you free from your spouse’s debt. If one or both of you are entering the marriage carrying debt, a prenup will specify who is responsible for paying off the debt both during and after the marriage.

STAY-AT-HOME-PARENT

When one of the parents stays home with children, he/she is saving the family, on average, over $100,000 per year. This is a significant amount of money, considering that with the stay-at-home parent, the work would likely have to be contracted out, which can be costly.

If/when a marriage ends in divorce, there is no real way to identify those savings. This can put the stay-at-home parent in a tough situation. With a prenup, both parties are protected.

As a final note, take time to ensure that your prenup is mutually beneficial. Ultimately, it should be a way to show that you and your spouse truly care about each other.  For more contact our law firm at [email protected]

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Written by Canterbury Law Group

Talk About Divorce Right After Engagement

It’s THE most exciting time in your life. You’re newly engaged and about to embark on an exciting life journey with the one you love.  You will soon marry!

But guess what? Now, and we mean NOW, is the best time to talk about divorce.

Why is that?

Well, divorce attorneys in Scottsdale see it all the time. Great people with high hopes and optimism for their relationship soon crumble before them with a relationship that ends in resentment and heartbreak. With affections and optimism at its peak during an engagement, talking about divorce is extremely productive.

Generally speaking, people end up filing a divorce because they don’t know their spouse or they don’t know themselves. By simply speaking with your significant other about divorce, you are taking a huge leap in the right direction to avoid this situation.

The only question that remains is, what should you talk about?

Let’s take a look.

Talk About the Why

That’s right. You should have a conversation with your fiancé about why you would get divorced in the first place. This is a very clear path to pinpointing your marital expectations. This includes non-negotiables such as fidelity and honesty in addition things that might change throughout the marriage like friendships and career details. You can take this one step further and discuss what you both feel are good and bad reasons to get divorced.

Discuss Prevention

Experiencing issues in a marriage is inevitable. A perfect marriage, with no problems, simply doesn’t exist. Having said that, it’s important to handle those issues properly and overcome them in the best possible manner. Be candid with your partner about how you would handle problems and what you would do if issues were to present themselves. Would you broach things head on? Would you wait it out? Would you seek counseling? These are all important questions to consider.

Share Obligations If You Were to Get Divorced

While prenuptial agreements may be tough to have at such an early stage of your long-term relationship, they provide a great of insight. They are raw, emotional, and passionate.

It’s important to discuss things like the space you share (your home), financial logistics/needs, professional life changes, family member involvement, and parenting.

While it’s important to discuss individual needs during a divorce, if you devote enough affection throughout your relationship and appreciate everything your fiancé has to offer, it’s unlikely that you’ll ever need to file those divorce papers.

Divorce & Legal Separation, Divorce Attorney, Divorce attorneys Scottsdale, Divorce Rate, Divorced Parents
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Regular Post
Written by Canterbury Law Group

Reasons for Bankruptcy and How to Avoid Them

When it comes to bankruptcy, there is both good news and bad news. In 2017, bankruptcy filings fell by 3%. Good news, right?

Having said that, there were still over 770,000 bankruptcy filings. This is something upon which we must improve.

In doing so, it’s important to examine the fundamental reasons why people end up in bankruptcy. Bankruptcy lawyers in Scottsdale have assembled the following five reasons in addition to how to avoid ending up in this dismal situation.

#1 – Job Loss

Although we are currently in a period of low unemployment, it was recently very high not too long ago. If you don’t plan correctly and fail to have a financial safe hold in place with sufficient funds, you can easily end up in bankruptcy. Things you’d have to consider in an emergency fund include food, rent, transportation, insurance, child-related expenses, and various asset expenses. Furthermore, you always want to prepare for medical expenses just to be safe.

In terms of your job, focus on being a productive employee with an amicable attitude. In addition, it’s always good to make yourself more marketable over time with additional certifications and skills.

#2 – Decreasing Income

Simply put, with less money and cash flow, the greater the chances are that you’ll end up bankrupt. While you may not be completely unemployed, a change in roles or a reduction in hours can really make it hard to stay afloat.

While this may be hard to avoid, you should prepare for this in the same way that you’d prepare for losing your job. Another option might be to pursue side gigs to augment your income.

#3 – Credit Card Debt

Credit card debt can really be a slippery slope, and if you let it get out of control, you’ll be in trouble quicker than you think. While it may be tempting to simply make the minimum monthly payments, you’ll actually just be dragging things out and losing money in interest over time.

There is a simple solution here – only purchase what you can afford and pay off your credit card every month.

#4 – Medical Expenses

It’s no surprise that one of the leading causes of bankruptcy is, in fact, medical expenses. We understand that medical treatment generally is not optional and also is quite expensive.

To avoid getting into debt because of medical expenses, focus on living a healthy life through clean eating, exercising regularly, and going for annual physician screenings.

#5 – Divorce

Divorce is one of the last major causes of bankruptcy. Outside of legal fees, which can be tremendously expensive, financial assets are not always allocated equally. If and when they are, you must consider the idea of living alone versus living with a spouse. A financial system that supported two people may not successfully support one person.

It’s important to work hard to keep your marriage healthy and strong. This can be achieved through active communication, romantic gestures, and honesty.

bankruptcy, bankruptcy attorneys, Fighting a Bankruptcy Case, Filing Bankruptcy in Scottsdale
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Regular Post
Written by Canterbury Law Group

Three Tips to Enduring Divorce

Divorces are difficult for everyone. While nobody wants to go through the process of divorce, it is, of course, can be necessary.

According to Psychology Today, nearly 40% of marriages ended in divorce in 2017. Think about that. That’s quite many people terminating their marriages.

When marriage trendy headed south, what should you pay attention to reduce overall stress and financial burdens in your life?

Divorce lawyers in Scottsdale recommend these three tips to make the divorce process as smooth as possible. Or you can choose not to file.  Either way, knowledge is power.

UNDERSTAND BOTH PARTIES’ FINANCIAL ASSETS

Before you can even begin negotiating marital assets, each spouse should seek to understand the others’ financial status. Too often, one spouse is in the dark about exactly what assets their significant other has/owns. It’s important to consider ALL financial assets: pensions, retirement accounts, bank accounts, properties, vehicles, etc. Having just a general understanding of these assets can lead to problems during divorce.

Here is the good news: If you file for divorce, your divorce attorney will seek and acquire all the “hidden assets” from your spouse through Court appointed rules and regulations.

AVOID EXPENSIVE LAWYERS

While many people feel the need to hire an “established lawyer” right away, you will be draining your finances more than you really need to. Since the system immediately starts generating work for the attorney (as soon as you submit your filing), you will be charged from the get-go. Things that will be set in motion include, but are not limited to, include financial relief for child support and counsel fees.

Sooner rather than later, you are thousands of dollars in the hole, and that may not even include a court appearance. Initiating the divorce in such an aggressive manner will not only prove to be costly but will also lead to greater tension and potential resentment.

Rather than rushing into the legal process, approach things amicably and have productive conversations. If both parties agree to work together in a civil manner, mediation may be a better option. Not only is this more affordable, but it can alleviate things quicker and more efficiently.

DETERMINE THE RIGHT TIME

Instead of rushing to make divorce official, consider all of the financial matters that come into play when deciding to file for divorce right then and there or at a later time. Timing can also largely impact the “equitable distribution of assets and liabilities.” Your house, amongst other assets, can be a huge factor in determining when you want to file.

Divorce Attorney, Divorce attorneys Scottsdale, Divorce Rate, Divorced Parents
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Regular Post
Written by Canterbury Law Group

Rebuilding Credit After Bankruptcy

Your life doesn’t end when you file for bankruptcy. There are many positives to this, such as having unsecured credit card debt discharged. There are also some negatives, mainly a major blow to your credit score. It’s not impossible to improve a bad credit score once your bankruptcy lawsuit is final.

Here is the good news.  Once your bankruptcy case concludes, you should take a hard look at the current state of your finances. Even if the court discharged some debt, you may have to still repay secured loans under a new payment plan. There may be tax issues to discuss with your bankruptcy lawyer in Scottsdale. More importantly, you should focus on your current credit score. Here are several tips for bringing it back up to what it once was:

Don’t Make the Mistake of Avoiding Credit Cards

Once you have undergone one bankruptcy, it’s easy to think that you will never use another credit card again. But this is usually noted feasible. You will likely need a credit card to improve your credit score. Not having a credit card is similar to having bad credit. A credit score reflects your reliability as a borrower. You can earn it back by proving that you are a responsible borrower to the bank. Therefore, you should keep your credit card or open a new account. However, do make payments on time. Once you keep making payments over time, your credit score would naturally improve.

Focus on Your Credit Utilization Ratio

Credit utilization ratio (CUR) is sometimes called the balance-to-limit ratio. It refers to how much credit you use as opposed to how much is left unused at the end of the month. This little number plays a major role in how fast and effectively your credit score improves. If you have a high utilization rate, this would negatively affect your credit score. If you have a $1,000 limit on your credit card, and if you use all $1,000 to buy things each month, then your CUR would be extremely high, reflected in a bad credit score. Ideally, you should keep your CRU in the 50 to 60 percent range. For the aforementioned credit card, if you were to spend only $500 or $600 a month, you would have a roughly balanced ratio that would work to your advantage.

Pay Off Majority of Credit Card Balances Each Month

Pay at least 75 percent of credit card balances each month. Ideally, you should repay it all back. Maintain your CUR with payments on time. Keep in mind to never max out the credit limit.

Use a Secured Credit Card

A secured credit card is similar to a regular credit card, but there’s a cash collateral required to obtain one. You will receive one of these after making a security deposit. These cards are designed to help those with bad credit gain positive credit scores. Unlike with regular credit cards, banks typically make payment information about secured credit cards available to credit agencies without delay. Therefore, you can rebuild your credit faster with a secured credit card.

It’s also advisable not to borrow money, such as for a loan, until your credit score is at an ideal level. And don’t rush to increase your credit score either, as it can bac-kfire. Develop an actionable strategy that works best for you to gradually improve your credit score after bankruptcy.

Bankruptcy is a bridge to your new future.  Let Canterbury Law Group take you there and create your future!

bankruptcy, bankruptcy attorneys, Filing Bankruptcy in Scottsdale, Uncategorized
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Regular Post
Written by Canterbury Law Group

Divorce Settlement in Arizona

Divorce settlement via private mediation is common in some states, where some courts may require couples to settle their problems before contested trial. Arizona is not one of these states. Divorcing couples can directly go to trial without any legal obligation to negotiate via a mediator. But that does not mean divorce settlement is impossible or not worthwhile in Arizona. The state’s family courts are dealing with a massive backlog.   Six or twelve-month backlogs are not uncommon.  Therefore, if you want your divorce case to proceed faster, the settlement might be the best option through private mediation.

There are multiple ways to settle your divorce case with your soon-to-be-ex. The easiest path is to talk to him or her civilly with your divorce attorney in Scottsdale present. You can also hire a third party mediator, with your attorney attending such mediation, to facilitate talks. Divorce mediators are not attorneys, but impartial third-parties who help couples hold discussions. Mediators can help when spouses are not on speaking terms.  You can have your lawyer present, as can your spouse.

Some individuals may refuse to talk to their divorcing spouse and prefer to sort out differences in court. This, however, could be counterproductive to both parties. Here are several reasons why settling a divorce case can be to your advantage:

Save Money

The biggest motivator that drives many divorcing couples to settle via mediation instead of going to trial is the money and expense. Make no mistake, divorce is expensive in Arizona. When an attorney has to represent you at trial, the expenses can pile up because the trial prep is extensive and time-consuming. You will also have to pay documentation fees. Attorney fees and other costs are much lower when you settle.

Save Time

As mentioned above, state divorce courts in Arizona hear so many cases that you should not expect your case to sail through the court without a hitch. Even setting the initial trial date could take months if not a year or more.   If you don’t want the divorce to drag on for years, do consider talking things through and settling through private five-way mediation.

Make Your Priorities Clear

Settling the divorce with your spouse and attorneys is the best way to make your priorities clear. You will have plenty of opportunities to have your say before the final divorce decree is signed. When the case goes before a judge, it is the judge who ultimately gets the final say. The trial won’t go on forever either. The judge is under pressure to conclude the case within a limited amount of time. Therefore, it’s not unlikely that you may not like the judge’s final ruling. It’s possible that the judge may rule in a manner that neither party is satisfied with. It’s usually the case when it comes to decreeing property division and alimony. When you settle, you will have more control over the outcome.  It’s better to choose than to be chosen by a random person in a black robe.

Protect the Children from Unwanted Hostility

Most important, active divorces take the biggest toll on your dependent children. If your divorce involves kids, you do them a disfavor by dragging out a divorce case for years. If you don’t want your children embroiled in a nasty divorce fight, choose to settle with the spouse. Negotiations can also make co-parenting plans more bearable.  Private mediation can get you to the finish line far sooner and with less expense.

If you want the best outcome from your divorce, try to settle your differences and focus on practical issues. Negotiating a settlement civilly is the best case scenario for both parties and for children in most divorces. If you need more information, contact us to discuss options without charge.

Divorce & Legal Separation, Divorce Attorney, Divorce attorneys Scottsdale
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Regular Post
Written by Canterbury Law Group

Divorce and Taxes in Arizona

The tax season for 2018 starts on January 29. It can be a particularly stressful time, especially now that the national tax laws have changed. If you are in the middle of a divorce or have recently filed for a divorce, this season’s filings can be quite overwhelming. Here is what you should know about divorce and filing taxes in Arizona so that you don’t make a penalty-incurring mistake:

Divorce Attorney Fees are Not Tax Deductible in General

Clients in divorce cases often want to know if attorney fees are tax deductible. Typically, the answer is no. The IRS does allow a minor exception for divorce attorney fees paid during “collection or production of gross income.” This clause doesn’t cover a majority of fees you would pay a divorce attorney. But you can ask your divorce attorney in Scottsdale whether the fees you pay are tax deductible.

Your Filing Status Determines Tax Liabilities

When you file your IRS form, you are given three options to choose from as your civil status: married, single, or head of household. Tax liabilities for each category slightly differs, so the box you check matters a great deal for your individual tax obligations. If the divorce is not yet final, it can be difficult to determine whether to file as a single person or jointly with your soon-to-be-ex. You can consult with a lawyer to decide what to do. Or you could calculate what you owe under all three categories and determine which is most advantageous to you.

Spousal Support and Child Support are Distinct Categories

When filing your taxes, do not confuse alimony or spousal support with child support. Spousal support, which is sometimes referred to as alimony, is paid by one former spouse to another, for the benefit of the recipient. Child support, on the other hand, is paid to an adult who oversees the well-being of a child, but for the direct benefit of the child.

If you are a custodial parent recipient of child support, you don’t have to list it as taxable income. If you are the parent paying child support, you cannot obtain a tax deduction for the amount paid.

Spousal support works the other way. The individual who receives alimony payment must list it as taxable income. The paying spouse can obtain a tax deduction on the alimony payment. Note that the new GOP tax bill made an important change to this provision that will take effect on December 31, 2018. So it won’t affect this tax season but will start next year. Under the new law, alimony tax deduction is eliminated. The tax obligation is reversed. The spouse that pays the alimony will not be able to report a deduction, while the spouse that receives alimony no longer has to report it as taxable income.

Property Division may be Subject to Tax When Sold

When spouses divide property during a divorce, it is not a taxable act under the IRS Code. However, there’s a hidden clause called “tax basis” that might result in a tax payment. Tax basis is the purchase price of a property that is used to determine capital gains tax. Not all properties, such as a residence, incur capital gains tax following a divorce. However, certain property, such as investments, may incur capital gains tax when sold after a divorce.

For the most part, your divorce decree would determine how taxes should be paid for some property categories, such as IRAs.

Divorce & Legal Separation, Divorce Attorney, Divorce attorneys Scottsdale, Divorce Rate, Uncategorized
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Holidays and Parenting Time in Arizona

The end-of- the-year holiday season is typically the biggest time of the year for many families to get together. If the parents are divorced, the Christmas season could bring forth new disputes. It’s very important to protect children from any sort of drama during the holiday weeks, especially when they expect to spend their school vacation enjoying themselves. In Arizona, the divorce decree usually also includes a separate parenting time plan that lays out who time is shared over the holidays.

Holiday Parenting Time Under Arizona Law

The family courts in Arizona have a statutory requirement for divorcing couples with children to provide a holiday schedule. Under A.R.S. §25-403.02 (C), this plan must include a “practical schedule” for how parenting time is allocated during the holidays. There should be specifications for with whom the child would reside, how the child should be transported, and a reconciliation method in case disputes arise.

Parents should specifically arrange a parenting time plan for the year-end holidays. Unlike other vacation times, the November-December period involves many public holidays, seasonal celebrations, and family gatherings. The child might require transportation more so than during other long holidays like the summer vacation. It’s highly recommended that divorcing parents get family law help in Scottsdale to come up with a reasonable plan.

Organizing a Parenting Time Plan for the Holidays

Very generally speaking, parenting plans during the holidays can be developed in three primary ways. First, some parents agree to have the children for Christmas every other year. For example, mom could have the kids for Christmas and Thanksgiving during even years, and dad during the odd years. Some parents divide holiday time evenly during the day. For example, the kids would spend Christmas mornings with mom and the evenings with dad. Other parents designate certain holidays for themselves. For example, the kids may spend every Thanksgiving with mom and Christmas with dad.

Of course, parenting plans can be adjusted according to different religions and cultures. Adjustments can also be made depending on the vacation time the parent gets. However, it’s very important to have the holiday season planned ahead and in writing. The arrangements are ideally made months in advance unless it’s already specified during the finalization of the divorce. But practical concerns do arise every year, so ex-spouse’s with children should make arrangements early.

Be Specific with the Details

More importantly, divorcing parents must make sure the parenting plan is highly specific. For example, separating parents may decide to give mom the kids for Christmas during even years. But that’s a very basic provision. Is “Christmas” limited to just Christmas day? Will the children require transportation from parent to parent? On which day and at what time will the kids be dropped off and picked up again? These specifics should be handled in the parenting plan.

Divorce & Legal Separation, Divorce Attorney, Divorce attorneys Scottsdale, Divorce Rate, Parenting Coordinators, Parenting Coordinators in Arizona, Parenting Time, Parenting Time Different from Custody, Uncategorized
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Regular Post
Written by Canterbury Law Group

How to Handle Debt and Other Financial Problems in 2018

A brand new year is here, bringing with it exciting new possibilities. Some possibilities in 2018, however, will not be exciting for some Arizona households. According to a recent study published by TransUnion, a credit reporting agency, consumer credit card debt will increase this year for the fifth consecutive time. Earlier this year, the amount of credit card debt American households owned reached a whopping $1 trillion. By next year, market research shows that many households would significantly struggle to pay off that debt.

Despite a strong economy, American households continue to amass debt. Credit cards are not the only culprit. A significant number of households are indebted due to unsecured loans like payday loans. This is in addition to typical loans like a home mortgage and student loans. While 2018 may be a good year in economic terms, it will also be a year many Arizonian households and individuals grapple with debt. Here are several debt management tips to keep in mind:

Avoid Taking on New Debt

Remember that any money you borrowed for the holidays will have to be paid off this year. If you are already in debt, it’s not a good idea to take on even more debt. Use your income or savings for holiday activities like parties and vacations and avoid borrowing more money overall. Control your spending habits right now to start reducing your debt gradually this year.

Talk to a Lawyer Regarding a Debt Relief Strategy

If the debts have piled up high already, the creditor may start suing you next year. Therefore, consult with a bankruptcy lawyer in Scottsdale to formulate a strategy to get rid of at least some of that debt. You can consider filing for bankruptcy if you find yourself literally unable to make payments. Chapter 7 bankruptcy allows judges to discharge certain forms of unsecured debt, like credit card debt and payday loans. Ask a lawyer whether filing for bankruptcy would make financial sense in the coming year.

Negotiate with Creditors

If there are creditors calling, demanding that you pay back a loan, there are several options you can consider here. First, if the creditor is abusive and is subjecting you to harassment, you could consider taking legal action against creditor harassment. If the creditor’s communication tactics are legitimate, you can try negotiating. Creditors prefer to have their loans paid back at least partially than to have a bankruptcy court discharge the debt. Therefore, if you are unable to meet due payments, try to negotiate the interest rate or request an extension. Your lawyer may be able to assist.

Last but not least, save for emergencies. The start of the year is a great time to open a new savings account. When you have money saved for tough times, it will eliminate the need to take on personal loans or use expensive credit cards.

Abusive Creditor in Arizona, Debt, Debt buyers, Debt Collection Companies
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