Written by Canterbury Law Group

Who Can File for Chapter 12 Bankruptcy?

Most people are familiar with Chapter 7 and Chapter 13 bankruptcy. Chapter 12 is a special type of bankruptcy clause that allows a specific group of financially “distressed” debtors to file for bankruptcy.

Unlike Chapters 7, 11, or 13 bankruptcies, which most individuals or businesses in debt can apply for, Chapter 12 bankruptcy is specifically reserved for family farmers or family fishermen under the Bankruptcy Code, which the state of Arizona adheres to. The eligible parties can propose a repayment plan for the debt to pay off creditors in five years or less. In this sense, Chapter 12 bankruptcy is similar to Chapter 13.

Chapter 12 doesn’t allow for the automatic discharge of some debts like Chapter 7. However, a judge will review all debts and determine if any are eligible for a legal discharge. Let’s look at who is eligible to file for this type of bankruptcy:

Only Fishermen and Farmers with Regular Income are Eligible

The Bankruptcy Code specifically states that the fishermen or farmers who qualify for Chapter 12 bankruptcy must have what is termed as “regular annual income.” This clause exists because debtors who file a petition must agree to a repayment plan that requires some sort of income. However, income for some farmers and fishermen is almost always seasonal. The law takes this into consideration and does allow relief if needed. You will need a competent bankruptcy attorney in Phoenix or in your local area to ask for a regular income reprieve.

Categories of Farmers and Fishermen

The family farmers and fishermen are specified in the law under several categories. A “family farmer” or a “family fisherman” could be an individual or a spouse of en eligible individual, or a business entity like a partnership. The individuals must have a professional in commercial fishing or farming to be eligible. The total debt the petitioner is seeking relief from should not exceed $3,237,000 for farmers or $1,500,000 for fishermen.

A majority of the debt in question should be related to farming or fishing. For fishermen, this is least 80 percent, and for farmers, the threshold is at least 50 percent. Also, a majority of more than 50 percent of the income of the petitioner must come from farming for fishing operations for the preceding tax year. For farmers, this must be true for two or three preceding tax years.

Filing as a Corporation

Fishing and farming corporations or partnerships are eligible for Chapter 12 bankruptcy too. There are, however, stringent considerations that determine which types of business entities are eligible. The businesses must be family owned, and more than one-half of the equity or stock in the business must be owned by a single family or its blood relatives.

The corporation or the partnership must be run by family members and relatives. A majority of 80 percent or more of the value of the entity must come from farming or fishing related activities. There are limits to indebtedness levels as well just like for individuals. Also, the business cannot publicly trade stocks after filing for bankruptcy.

Written by Canterbury Law Group

Some Facts about Arizona’s Adoption Law

Arizona allows any adult to adopt a child. Parents, grandparents, step parents, or non-related individuals can file a petition to adopt a child in the state or from outside the state. Here are several legal facts about Arizona’s adoption laws:

Adoption Eligibility

Arizona allows married, unmarried, and legally separated adults to legally adopt children. A married wife and a husband can jointly adopt a child. However, an unmarried couple may face certain legal restrictions when jointly adopting. It’s recommended to consult with local family law help in Scottsdale if you are an unmarried person with a partner who wants to jointly seek adoption of a child.

Adoption for Same Sex Couples

In Arizona, couples in same sex marriages can adopt children either individually, or as step parents. The law is unclear on whether same sex marriage couples can jointly adopt a child. The law could change soon, so it’s highly recommended to seek legal help if you and a same sex partner are seeking joint adoption.

Child’s Eligibility for Adoption

A child must be below the age of 18 to be adopted in Arizona. Also, the child must not be an illegal immigrant alien in the state when the adoption petition is filed. Foreign children can be adopted as long as they are not present in the state as an illegal alien defined by state law. Importantly, the child has to be free in legal terms to be adopted. The term refers to custody arrangements. The child’s birth parents, if present, must formally give their consent for the child to be adopted. If the birth parents are deceased or if their rights have been terminated by a court order, then this consent form is not necessary.

Foreign Adoptions Follow the Hague Intercountry Convention

All foreign adoptions in the U.S., including in the state of Arizona, are conducted according to the Hague Convention on Intercountry Adoption. The original country the adoptee comes from must also be a part of this Hague Convention for an adoption to take place. It should be noted that the U.S. bans adoptions from some countries, like Russia, even if these countries are party to the Hague Convention. Foreign adoptions can be a lengthy and expensive process. You should speak with a lawyer who knows immigration law to petition for a foreign adoption.

Non Relatives Require Court Certification

If the to-be adoptive parent is unrelated to the child, as an aunt or a stepparent, then the adult must obtain a court certificate to show eligibility. These certifications follow what’s called a “home study” carried out by an approved adoption agency in the state, an official from the Arizona Department of Economic Security, or a court officer. The study will involve an assessment of social, financial, and other qualifications of the prospective adoptive parents.

Birth Mother’s Husband’s Consent is Necessary

Arizona maintains that a married birth mother’s husband must give consent to the adoption. If the birth mother is married, her spouse must give consent even if he is not the biological father of the adopted child. If the biological father is not married to the mother, he must be notified of the adoption before it takes place. The biological father will be given 30 days to respond to the notification with paternity action.

Adoption, in general, is a straightforward process but some factors can complicate it. You must seek help from an experienced attorney to make sure the process goes smoothly.

Written by Canterbury Law Group

Consulting with a Bankruptcy Attorney

Before you file a bankruptcy petition, you must consult with a competent bankruptcy attorney. In fact, you should do this while even contemplating bankruptcy. The attorney would be able to tell you whether bankruptcy is the best option for your financial situation and the best timing to file. When you are consulting with a bankruptcy attorney, here is what you should ask and seek answers for:

Tell the Lawyer Briefly about Your Financial Situation

When you meet up with your bankruptcy lawyer in Scottsdale, be 100% honest with them regarding your financial situation. Do NOT withhold the truth for any reason.  If you haven’t hired the lawyer, you don’t have to give details of your debts. However, a brief overview will be necessary. Tell the lawyer what type of debt you have, your income situation, and why you think you are unable to repay your loans on time. The lawyer should be able to tell you then whether bankruptcy is the suitable next step for your financial situation.  If you lie to your lawyer, you could face criminal prosecution in your underlying bankruptcy case later because he or she would be defrauding the court.  The truth the truth and nothing but the truth, because your bankruptcy is filed under penalty of perjury.

Ask the Lawyer if He or She is willing to be a Negotiator

Before you file for bankruptcy, you can try negotiating with creditors. Bankruptcy is not the ideal scenario for either debtors or creditors. Some creditors may be willing to cut down the interest rate or extend the repayment plan. If you are worried about your credit score, negotiating is better than going to court. You can inquire about the pros and cons of bankruptcy from your attorney. It’s important to make sure it’s the best solution for your financial problems before proceeding.

Inquire about Different Types of Bankruptcy

The Bankruptcy Code allows for different types of bankruptcy petitions. You may have heard of some of these already, like Chapter 7. While Chapter 7 is the most common type of petition for individual debtors, it may not be the only one. If you belong to a higher income category, you may have to file for Chapter 13. If you have a family business in fishing or farming, you may be eligible for Chapter 12 bankruptcy. Ask your lawyer about which type of bankruptcy petition best suits your situation.

Check Your Eligibility to File a Petition

If you have filed for bankruptcy before, you may not be eligible to file again. For example, if you have declared Chapter 7 bankruptcy in the past, you will not be eligible for the same type of petition for about 6 to 8 years depending on what state you file in. There could be other factors, like income and alimony that make you ineligible to file for bankruptcy or at least the type of debt relief you seek. Therefore, you will need to ask the attorney to find out if you are eligible to file a petition and which chapter might get you the best debt relief.

Learn about Fees and the Process

Filing for bankruptcy is not expensive, but there will be court fees involved. Learn about these fees from the lawyer. Also, ask the lawyer to explain the general process of filing in your local jurisdiction. You will have to discuss representation fees and consultation fees as well. Bankruptcy attorneys are limited in how much they can charge as per Arizona law.  You typically get what you pay for.  The $99 down bankruptcy ads on TV are usually highly misleading.  Most bankruptcy filings, no matter who you hire, require several thousand dollars to file and complete.

If your consultation goes successfully, you will be able to proceed with your petition.  Consider contacting us to consult to discuss your needs.

Written by Canterbury Law Group

What is the Difference between Divorce and Legal Separation in Arizona?

In Arizona, there are two ways to formally and legally remove your estate from your spouse: divorce and legal separation. It’s important to understand that these are two different processes. Legal separation is not another term for divorce. While there are certain overlapping legal similarities between the two, it’s important to understand that these are two different things. Read below to find answers to commonly asked questions about divorce and legal separation in Arizona:

What is the Difference between Divorce and Legal Separation?

Obtaining a divorce means that the marriage is legally dissolved, with all assets separated, and both spouses legally become single people capable of remarriage and child custody rights are legally established. In contrast, a legal separation does not dissolve a marriage. The spouses will be technically still married to each other, but also judicially separated. However, like with a divorce, virtually all assets and debts are typically separated between the two spouses. But unlike in a divorce, the spouses cannot claim to be single persons for any legal reason nor can they remarry.  Most people pursue Legal Separation to maintain valuable health care coverage, among other reasons.

Why Seek Legal Separation Instead of a Divorce?

Legal separation may be suited for some people over a divorce for several reasons. Most spouses who do not want to divorce due to religious reasons or personal convictions can still undergo legal separation to judicially extricate oneself from a spouse. Spouses that want to live apart but without getting a divorce can obtain a legal separation.

Some people prefer to legally separate rather than divorce in order to keep valuable health insurance benefits of a group plan. As mentioned above, legally separated spouses are still considered married, and thus can benefit from continued spousal health insurance coverage. Similarly, those who have been married for less than 10 years can continue to receive social security benefits on their spouse’s federal benefits following a legal separation, unlike with a divorce in which such benefits are completely terminated for the lower earning spouse.

If you need to formally cut all legal, civic and other ties to a spouse, then you will need a divorce.

Grounds for Divorce or Legal Separation

Arizona is a no-fault state. It does not matter who did what to whom, or who cheated with whom.  Therefore, for both divorce and legal separation, you don’t need to show any reason for divorce to a court. If one spouse desires to divorce then the court will grant the divorce. Similarly, spouses do not need to prove a reason to get a legal separation. Claiming that the marriage is “irretrievably broken” is reason enough to obtain a Decree of Legal Separation as long as the other spouse does not object.  Only one of the two spouses must desire the divorce.  The person who “wants to hang on” cannot prevent the legal divorce from ultimately taking place.

What if One Spouse Insists on a Divorce?

Unlike in a divorce, legal separation is only granted if one spouse does not object. If one spouse wants a legal separation but the other wants a divorce, the court will convert the case and grant the divorce. Because a spouse can object, it’s important to discuss and make sure this is what both parties want. Consult with a local divorce attorney in Scottsdale to discuss your options.

What if the Legally Separating Couple has Children?

Child custody issues for legally separating couples are handled similarly to a divorce by Arizona courts. The courts will always prioritize the needs of the children. A family court will also determine parenting time and parental responsibilities.  You will receive formal judge imposed custody orders from the Court under either scenario.

What Happens to Marital Assets and Debts When a Couple Legally Separates?

Asset and debt separation for legal separations are also handled similarly to divorces. A court will make the determination.   Usually, the date upon which the original Legal Separation or Divorce Petition is “served” on the receiving spouse is the date that the community terminates.  Put another way, any salary or paychecks received after the date of service will usually be the earning spouse’s sole and separate property.  Exceptions apply, however.  Please consult seasoned legal counsel on all of these issues.

Written by Canterbury Law Group

Alimony Factors in Arizona

Alimony is the former name for what’s now called spousal maintenance. Alimony is financial assistance that the court orders one spouse to provide another spouse when a marriage ends. One spouse must request spousal support for the court to issue an order compelling the payments. There are several factors that a court takes into account when determining alimony. The court first examines certain qualifying factors to determine if one spouse even can procure alimony and then and only then decides how much and for how long.   There are no juries in Arizona family court, only a sitting judge.  So whether you like it or not, one person, in a black robe, will someday make a big decision on how much and how long your ex-spouse may or may not be paid upon divorce.

The Need for Spousal Maintenance

The court first decides whether one spouse actually qualifies for spousal maintenance and whether the other has the means to pay, before ordering maintenance be paid. A spouse may request alimony if he or she does not have enough property after marital distribution to provide for oneself, or is somehow unable to find proper employment. If one spouse has significantly contributed financially to the other spouse’s education, then alimony can be requested by the spouse who contributed. The court will look at the other’s spouse’s financial situation as well. A divorce lawyer in Scottsdale can help you file an alimony petition.

Duration of Marriage Affects Alimony

The longer the separating couple has been married, the higher the chance for alimony for one spouse may be. Generally speaking, if married less than 5 years, procuring maintenance from the wealthier spouse can be a challenge, or impossible. Once one hits ten years or more, the ability to obtain maintenance for some period of time appears to jump significantly.  If you have been married 30 years or more you can almost guarantee that someone is going to be paying spousal maintenance to the other.

The law of Arizona specifically states to take the duration of marriage into consideration when setting alimony. However, the law does not specify the ideal duration or a minimum duration. So even a spouse that was married for just a week can technically request alimony.  As noted, however, marriages of short duration rarely qualify for a payout.

Can Alimony Be Granted to Unfaithful Spouses?

The short answer is yes.  This is a common question for some divorcees. Understandably, a spouse may not want to pay alimony to another who has been unfaithful throughout the marriage. So, some spouses may prefer to have such spousal misconduct be a factor in determining alimony. However, in Arizona, divorce is not granted based on spousal misconduct. Arizona is a no fault jurisdiction.  Thus, couples can file for divorce in Arizona without providing a reason. If one spouse contests the divorce, the other spouse only has to show to the court that the marriage is broken beyond repair. Marital misconduct is not legally relevant to the divorce proceedings, and therefore will not play a role in any alimony fight. Unfaithfulness on one side does not lead to automatically denying alimony for that spouse, nor does the court demand the cheating spouse to pay the other. The same applies for dissolution of covenant marriages.  Long story short, while he or she may have cheated—he or she may still get paid by the Court depending on your income and length of marriage.

Prenup Roles in Alimony

A prenuptial agreement is an optional private contractual agreement that spouses enter into before marriage. When a couple divorces, a prenup is upheld for the most part if all provisions are in accordance with the law. If one spouse has agreed not to seek alimony in a prenup, the court will often uphold this in divorce proceedings. However, the court may rule otherwise if the spouse that needs alimony could end up in a welfare state without spousal maintenance. Arizona law allows courts to decline the validity of prenups if one spouse could end up in dire financial need following divorce.

Determining alimony is affected by many factors. Consult with a competent divorce lawyer to secure alimony as you desire, or to defend vigorously against paying it.

Written by Canterbury Law Group

Marriage Annulment in Arizona

Marriage annulment is a term many people have heard of, but only a few really understand. Forget about what you may have heard about annulment on TV. There are actually two types of marriage annulments: civil and religious. A religious annulment is granted by a religious institution like a church and its clergy. Civil annulment is granted by a court of law and affects your legal civil status. This article explains civil annulment.

What is Civil Annulment in Arizona?

Civil marriage annulment takes place when a court declares that a marriage is not valid but void. It means that the court legally declares that for legal purposes the couple was never married. It can be confusing, but if what was considered a marriage was not obtained in accordance with legal requirements for marriage in Arizona, the court can annul the marriage. It’s sort of like a court “erasing” a marriage. It is as if the marriage literally never happened.

The Two Types of Civil Annulment

Courts in Arizona classify annulments in two ways as voidable marriages and void marriages. A void marriage is a union that was not valid from the beginning. Arizona has a list of prohibitions for marriage, such as incest, which would make a marriage completely invalid. If a biological brother and a sister got married, this is not a marriage that the state recognizes as valid, and therefore would incur in a void annulment.   There are several other methods by which a marriage can be deemed void and you should consult a family law attorney for more details.

A voidable annulment is where one party can seek an annulment from a court. For example, if one spouse was deceived into marrying the other, the wronged spouse has the right to request a voidable marriage annulment.  Deception grounds can include, for example, failure to consummate the marriage by one partner refusing to ever have sex with the other spouse at any time after the ceremony.  Again, consultation with legal counsel is critical before you seek annulment.

Is an Annulment Any Different from Divorce?

Getting a divorce involves going through often-lengthy court proceedings to formally end a marriage. The important difference between divorce and annulment is that in the case of the former, the courts recognize the marriage as valid, and thus to end it there must be divorce proceedings according to the law. Annulments do not require going through lengthy court proceedings. Once a judge declares a marriage invalid, it’s no more.  It typically can occur far faster than a conventional divorce litigation.

It should be understood that not all annulments are quick and painless. There are very specific grounds under which a marriage can be annulled.  Absent qualification for such a remedy, your case will be diverted to a conventional divorce resolution like everyone else.

What are the Grounds for an Annulment?

Under Arizona law, there is a list of “void and prohibited marriages.” Any marriage that falls in this category is not recognized by the state as valid. Arizona prohibits marriage between parents and children, between grandparents and grandchildren, between whole or half-blood brothers and sisters, between first cousins (but only under certain conditions), and between uncles or aunts and nieces and nephews. Same sex marriage was also once considered “void and prohibited”. However, recent Supreme Court rulings have changed that. Same sex marriage is now legal and the law of the land.

There are other reasons a spouse can request an annulment, such as fraud, deception, coercion, intoxication (when getting married), underage marriages without parental consent, mental illness, “mock” marriages, inability to consummate the marriage, bigamy, and incest. To know for sure if your marriage can be annulled, get family law help in Scottsdale.

If the couple has children, the annulment proceedings will determine which party should be responsible for the children. The court may not recognize certain property as “marital assets” if the marriage is considered void. You should contact a lawyer with specifics to find out how annulment proceedings may affect children or assets. Annulment compared to divorce can generate a significantly different outcome in property allocations in any divorce or annulment scenario.

Written by Canterbury Law Group

Chapter 7 Bankruptcy Exemptions in Arizona

The Bankruptcy Code is governed by federal law, which means that many aspects of bankruptcy such as the “automatic stay” apply similarly regardless of the state the petitioner lives and files in. However, it’s important to know that Arizona has legally opted out of many federal bankruptcy exemptions under the code. So people who file for bankruptcy in the state can obtain exemptions only according to state laws. This particularly pertains to property exemptions. State bankruptcy exemptions work similarly for both Chapter 7 and Chapter 13 bankruptcy in the state. If you are filing for a Chapter 7 bankruptcy, read below to find out which exemptions you may qualify for in the state:

Residential Property and Homestead Assets

Arizona’s homestead exemption allows debtors to exempt up to $150,000 equity value from any real property considered a home. Other real property may also qualify if it falls within Arizona’s homestead laws. The exemption is the same for single as well as married couples. You will have to contact a lawyer regarding which of your real properties can be exempted under the homestead exemption clause in the state.

Certain Types of Personal Property

The courts allow debtors to get exemptions for various items that can be considered “personal property.” Your personal property includes items you own like clothes, computers, guns, furniture, books, pet animals, musical instruments, health aids, and wrongful death awards among others. The state allocates a specific amount of each personal property as exemptions. For example, Chapter 7 petitioners can exempt up to $2,000 for a wedding ring. You should refer to Ariz. Rev. Stat. §§ 33–1123, 33–1125 and 33–1127 for more information, or ask an experienced bankruptcy lawyer.

Deposits

A debtor filing for bankruptcy can exempt up to $300 from deposits in one bank account. If you have multiple bank accounts, contact a bankruptcy attorney in Scottsdale to find out how you can obtain exemptions.

Motor Vehicles

Arizona has very specific exemptions for motor vehicles for Chapter 7 bankruptcy. The courts allow debtors to exempt up to $6,000 equity for each vehicle owned. Elderly petitioners or their elderly or disabled spouses can exempt up to $12,000.  Again, consultation with your legal counsel is essential.

Retirement Benefits and Pension Funds

Under federal rules, qualified retirement plans such as 401ks and IRAs, which have tax-exempt status, are also exempt in bankruptcy proceedings. Arizona upholds this rule. In addition, debtors who benefit from any type of state employee pension plan can obtain exemptions. Amounts will vary depending on the type of plan you have.  So let’s say you have $200,000 in retirement assets, you can still file and procure a bankruptcy discharge and still own your $200,000 in retirement accounts post-discharge.

Life Insurance Benefits

Up to $20,000 in life insurance that could be paid to a child or a living spouse can be exempted when filing for Chapter 7 bankruptcy. Cash surrender value will be considered for exemptions. Similar exemptions can be obtained for insurance plans that cover ill health, accidents or disability. Insurance claims for damages or destruction to property that is exempt will also be exempted from proceedings. There are many insurance exemptions, but there are also exceptions. It’s important to ask a highly qualified lawyer whether your insurance benefits can be exempted under Chapter 7 bankruptcy proceedings.

Child Support

Arizona exempts all child support or alimony payments from discharge when filing for bankruptcy. So filing for bankruptcy is not a valid reason to not pay court ordered alimony or child support.  You are your estate (after you die) will owe child support and alimony for life—and even then, your estate will be compelled to pay.

Fraternal Benefit Society Benefits

If you claim benefits from the Fraternal Benefit Society, they will all be exempted under Arizona law. To find out more about exemptions you can get when filing for Chapter 7 bankruptcy, contact an experienced bankruptcy lawyer or call Canterbury Law Group at 480-744-7711.

Written by Canterbury Law Group

Busting Common Myths about Arizona Bankruptcies

Filing for bankruptcy anywhere can be stressful. However, if you are neck deep in debt, and if bankruptcy seems like the best path to take, you shouldn’t hesitate to do so. Some people hold back on filing for bankruptcy and sorting out debt because of many misconceptions. Here is a brief list of common myths surrounding bankruptcy and the actual truth which dispels them.

Chapter 7 Bankruptcy Erases All Debt

Under both Chapter 7 and Chapter 13 bankruptcy rules, some debt will be discharged by the court. This does not mean that all debt will be “erased” by the courts. For example, discharge is not granted for certain debt like owed child support, spousal maintenance, penalties owed for criminal or civil cases, certain tax debt, and for all secured debt. What will actually happen when you file for Chapter 7 bankruptcy is that the court will review your case, and the judge will discharge a certain amount of unsecured debt. Then, the court will oversee a payment plan for you to pay back all remaining secured or exempt debt.  Will you walk away from bankruptcy with substantially less debt—yes, all debt gone—not always?

The Creditors Can Claim My Car and House

This is a common myth surrounding filing for bankruptcy and it’s largely not accurate. The courts allow bankruptcy petitioners to keep family homes and main modes of transportation under exemption rules. Even if your house is tied up in debt, you can claim an exemption of up to $150,000 out of the total equity value of your home. You can also get up to $6,000 worth of exemptions for each motor vehicle you own. Also, Arizona’s homestead laws further protect family homes. There are no recent known cases where an Arizonian bankruptcy court uprooted a family from their home over an unpaid debt. The courts are largely in favor of debtors keeping their shelter. To find out more about exemptions your property or vehicles might qualify for, contact a local bankruptcy lawyer in Scottsdale.

The Bankruptcy Court will Inspect My House

The bankruptcy court does not demand that anyone go to the debtor’s house and go through his or her possessions. The petitioner is expected to voluntarily list all possessions (under oath) when presenting the necessary paperwork. If the debtor has lied, the creditor’s lawyer will point it out to the court. There are no inspections of any sort involved absenting a willful fraud on the court by the applicant.

Filing for Bankruptcy Disqualifies Me from Applying for Credit Cards and Loans

Debtors that file for bankruptcy are not automatically disqualified from obtaining credit cards or loans like car loans. Certain types of bankruptcy, like Chapter 7 bankruptcy, discharges unsecured debt like unpaid credit card bills and personal loans. Once you have been declared bankrupt, your credit score will be lowered. Some loans will not be available for you based on this low credit score. However, as soon as you start repaying remaining debts, your credit score will come back up again quickly. In the meantime, you will be able to qualify for secured credit cards or loans even after you have filed for bankruptcy.

Also, when you have filed for personal bankruptcy once, you have to wait at least 6 years to file for personal bankruptcy in the state again. Creditors know this, and some actually prefer to lend to formerly bankrupt clients because of this knowing that they will not return to the bankruptcy court for years to come.

Written by Canterbury Law Group

Landscaping and Pest Control Advice

All professional landscapers must heed the laws and regulations set forth by the state of Arizona. The state has a significant body of laws to protect the environment and consumer rights with regards to these activities. If you own a landscaping or an exterminator company, here are several things to be aware of:

Understand the Definition of Pest Control

The landscaping and pest control laws in Arizona have a precise definition for what amounts to a Pest Control Company. Pest management is defined under the law as the “management of health-related pests,” including services provided on land, in water or inside homes. Pest management does not include applying pesticides for agricultural purposes or at golf courses. It’s important to know this definition when you run a company. If your business is registered as a pest control company, and if you go to control pests at golf courses in Arizona, that would be illegal.

The Companies are Responsible

In Arizona, the company registered as a landscaping or pest control business is responsible for its practices. The employees the business hires to work on gardens and houses will not be liable if a legal case comes up. In some cases, licensing violations can apply to individuals, but only if certain criteria are met (such as how many gallons of pesticide one carries). These laws do not apply to regular homeowners who spray pesticides or herbicides on their lawns for their own personal use and benefit.

Know What Chemicals are Approved for Use

The state issues control on what chemicals can be used to control pests or weeds. For example, landscaping companies may use herbicides labeled as “restricted use” or “danger.” But appropriate licenses must be obtained to apply these substances. Plus, there will be other rules set by the Office of Pest Management (OPM) that companies must follow. Failing to follow rules and regulation will result in penalties or litigation.  Consultation with an experienced pest control law firm is essential when making these decisions on your company’s best practices.

Get Insured

Mitigate any risks to your businesses by getting insured. It’s inevitable that problems might come up when handling dangerous chemicals on other people’s property. So all landscaping and pest control businesses must have a good insurance coverage. Make sure the insurance provides coverage for the actual costs incurred. For example, there’s no point in buying a business insurance policy for $10,000 if it only covers about $100 in damages. Understand how the damages are paid. For example, know whether the policy provides cash value for damages or replacement costs. In addition, your company may need to get covered for employees, tort liability and similar issues.  Consult with an attorney to make sure your business is covered for all potential risks if and when bad things do actually happen.

Evaluate Chemical Use

Businesses should be careful regarding the types of chemicals that are being used to control pests or weeds. Even if your company is authorized to use it, the applicators must be careful not to use chemicals that might potentially cause issues like allergy reactions. Safety precautions, of course, should be carefully practiced. Use the least harmful chemical first before resorting to more harsh ones when controlling for pests and weed.  Your employees and agents must be trained early, and often, and you must ALWAYS have a paper trail evidencing that you conducted such training for the inevitable OPM audit and inquiry into your company’s operations.

Hire a local attorney to review your businesses license, insurance policy and best practices to make sure they are being conducted according to state law.  Call Canterbury Law Group today at 480-744-7711.

Written by Canterbury Law Group

When Should You File for Bankruptcy?

Of course, filing for bankruptcy is not easy on anyone. The filing process can go smoothly if you have a good lawyer. What’s really difficult is deciding when to file for bankruptcy. Does your financial situation actually call for you to throw in the towel? This article will help you understand which situations call for declaring personal bankruptcy:

Do a Self-Assessment of Your Situation

No one knows your financial situation better than you. So, when deciding to file for bankruptcy, you should do a self-assessment of your financial situation. Even if you feel like your debts are unbearable, you may not necessarily be in the danger zone that calls for declaring bankruptcy. There are several indicators that you are in serious financial trouble. Here is a short list:

  • You get constant debt collection calls
  • You are unable to, and have not recently made, minimum payments on credit cards
  • You don’t know the size of your debt
  • Your family home is at risk of foreclosure due to a debt
  • You have to borrow money to pay for necessities
  • You get a lot of red notices in the mail
  • Your creditors are threatening legal action

If you answer yes to three or more questions above, then you are seriously in debt. If you are unable to pay for everyday necessities without using credit cards or borrowing money in another manner, then you are definitely in the financial danger zone. You could consider bankruptcy as a possible solution.

Consider Alternative Routes

Filing for bankruptcy will lower your credit score significantly. Therefore, it’s not something that should be done frivolously. First, consider if there are alternatives to bankruptcy you can consider. Try calling your creditors and renegotiating the terms of your loans. Most creditors prefer if debtors don’t go bankrupt as a judge could erase the unsecured debt. It’s very likely that the creditor will be able to come into new favorable terms with you.  You can also consider selling stuff around the house to find funds to repay loans. It’s possible that you are spending money unnecessarily, so a household budget adjustment may solve your problems. Exhaust your alternatives first, and then decide to file for bankruptcy.

Consult with an Attorney

If you are really not sure about doing either of the above, you can always consult with an attorney for professional advice. Find a local bankruptcy attorney in Scottsdale or other cities in the state. Most will be willing to hold a consultation for a lowered fee. The state of Arizona does pose limits on how much a bankruptcy attorney can charge so money may not be an issue.

Know What Types of Debt You Owe

Are your debts mostly because of secured loans, unsecured loans, unpaid taxes, or fees due like alimony? Some debts, like taxes and child support, cannot be wiped out by filing for bankruptcy. If you owe a lot of unsecured debt, like credit card debt, then filing for Chapter 7 bankruptcy is a good option.

It all depends on the type of debt you owe, and your income level. Before you file for bankruptcy, make sure you are eligible for it. You may also want to ask your attorney whether a certain type of debt can actually be forgiven by a bankruptcy court.

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