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The Chapter 13 Confirmation Hearing

Chapter 13 Bankruptcy Confirmation Hearing

You must propose a plan to repay part or all of your debts when filing Chapter 13 bankruptcy. The bankruptcy judge decides whether your plan can be approved at the confirmation hearing. Continue reading to learn more about the confirmation hearing, including when it takes place, who is invited, and what happens if your Chapter 13 plan is not approved.

The Repayment Plan for Chapter 13

In Chapter 13, you propose a three- to five-year payment plan. The month after you file your case, you’ll make your first payment. The funds are held by the Chapter 13 bankruptcy trustee until the judge approves your Chapter 13 plan, after which they are distributed to creditors.

Hearing on Confirmation

The bankruptcy judge must approve (confirm) your Chapter 13 plan. The bankruptcy court judge will use the confirmation hearing to determine the following:

  • whether your plan is feasible and you’ll be able to make the payments on time, and
  • whether you filed your plan in good faith or not, your unsecured creditors will receive the same amount of money or more than they would have received if you had filed for Chapter 7 bankruptcy.

Timing of Confirmation

Within 45 days of the 341 meeting of creditors, the court will schedule the confirmation hearing. The hearing will be announced to your creditors at least 28 days in advance.

Attendance

You are not required to attend the confirmation hearing if you are represented by an attorney, but you may do so if you wish. You must appear if you are not represented by counsel, or your Chapter 13 case will be dismissed.

What Takes Place During the Hearing?

You will report to the assigned judge’s courtroom when you appear for the confirmation hearing. Any plan objections that were not resolved before the hearing will be argued by the trustee or creditor when they are called. The judge will consider the arguments and determine whether your plan meets the requirements for confirmation. Both you and your creditors are bound by the plan once it is confirmed.

Objections at the Confirmation Hearing should be planned ahead of time.

The confirmation of your plan may be challenged by your creditors or the Chapter 13 bankruptcy trustee. Among the most common objections are:

  • The plan does not commit all available funds for the three or five-year plan period, or it does not commit all available funds for the three or five-year plan period.
  • Under the plan, you haven’t adequately provided for creditors.

For example, if you want to keep the property that serves as collateral in Chapter 13, you must pay all past due amounts owed to secured creditors, which are usually the holders of a mortgage or car loan. In addition, you must pay off all of your unsecured debts, such as credit card balances, medical bills, and personal loans, with your disposable income. Furthermore, these creditors cannot receive less than they would have received if you had filed for Chapter 7. The “best interests of creditors” test is what it’s called.

In many cases, an objection can be resolved prior to the hearing. If the trustee or a creditor claims that the expenses listed in Schedule J are excessive, you can resolve the issue by providing proof of your expenses. Similarly, if a creditor claims you aren’t paying enough, you can settle the dispute by changing your payment schedule to increase the amount you pay.

If the Court Approves Your Plan During Your Hearing

Following confirmation, the trustee will use the monthly payments you send in to pay the creditors listed in your Chapter 13 plan. Making timely and regular payments to the trustee is critical to the success of your case. If you are unable to make your Chapter 13 plan payments, contact the trustee’s office right away. They can assist you in modifying your plan payments.

If Your Plan Isn’t Confirmed by the Court

If the court rejects your proposed plan, the trustee will refund your money, minus any adequate protection payments made to ensure that a secured creditor—usually the holder of your car payment—is not financially harmed during the confirmation process (a bankruptcy requirement).

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Annulment in Arizona

Are you wondering if you are eligible for an annulment? Learn about the grounds for annulment in Arizona and how to obtain one.

Annulment is a frequently misunderstood legal concept, owing to the fact that popular culture and religion have promoted divergent and frequently erroneous views of what an annulment is in family law.

This article discusses “civil annulments,” as opposed to “religious annulments,” which can be granted only by a church or clergy member and have no legal effect on your marital status.

Annulments and divorces are similar in that they both establish marital status. However, the critical distinction between them is that divorce terminates an existing, valid marriage, whereas annulment simply declares that what everyone believed was a marriage was never actually one. An annulled marriage never existed in the eyes of the law.

Arizona’s Grounds for Annulment

There are several circumstances in which you may petition an Arizona court to annul your marriage:

  • One of the parties was married to another individual (bigamy).
  • The parties are blood relatives.
  • At the time of the marriage, one of the parties was a minor and did not obtain the consent of a parent or guardian.
  • One of the parties, or both, lacked the mental capacity to marry.
  • Both parties lacked the physical ability to marry.
  • At the time of the marriage, one or both parties were intoxicated.
  • The parties lacked the intent to enter into a marriage contract, either one of them or both.
  • The parties failed to obtain an official marriage license in a timely manner.
  • Instead of marrying each other in person, the parties used a proxy (substitute).
  • One of the parties committed fraud in order to obtain the consent of the other party to the marriage.
  • The one party used coercion (legally referred to as “duress”) to coerce the other party into agreeing to marry.
  • The parties have not engaged in sexual relations or one of the parties has refused to engage in sexual relations.
  • One of the parties fabricated information about his or her religion.
  • One of the parties omitted information about his or her previous marital status.
  • One of the parties planned to violate a premarital agreement in secret.

How Can I Obtain a Court Order Terminating My Marriage?

Due to the fact that annulment actions are heard in Arizona’s superior (trial) courts, you must file your paperwork at your local courthouse. By court order, an Arizona superior court judge can declare a marriage null and void and annul it. The “plaintiff” (the party seeking annulment) should file an annulment petition, and the defendant should respond. Additional documents may be required, and both parties must adhere to the rules governing service of process. Both will be summoned to appear in court, where the court will hear testimony, consider written submissions and applicable law, and issue an order.

Because annulments have significant financial and custodial consequences, it is critical to consult with a lawyer prior to proceeding.

Certain individuals fear that if their marriage is annulled, the paternity of their children will be questioned. Technically, this is correct. Due to the fact that an annulled marriage is invalid, the children born of the “marriage” are illegitimate, as if they were born to single parents. This, however, is a technical distinction with little practical significance, as Arizona law provides that “every child is the legitimate child of its natural parents and is entitled to support and education in the same manner as if born in lawful wedlock.” Thus, all children in Arizona receive the same level of protection and support regardless of their parents’ marital status, whether they are divorced or never married. While that statute does not affect parental rights, the courts in Arizona have also determined that parents of children born outside of marriage have co-equal custody of their children once paternity is established.

In Arizona, a presumption of paternity is created (a strong legal assumption that the alleged father is the biological father) if any of the following are true:

the father and mother were married within the ten months preceding the child’s birth, or the child is born within the ten months following the marriage’s termination by death, divorce, or annulment.

  • Genetic testing establishes at least a 95% probability of paternity.
  • A birth certificate is signed by both the mother and father of an unmarried child, or
  • Both parents sign a notarized or witnessed statement acknowledging paternity.
  • Thus, the majority of children born out of annulled marriages in Arizona are almost certainly covered by a paternity presumption. If a father wishes to contest this presumption, he must establish his paternity through “clear and convincing” (very strong and substantial) evidence.

Additionally, the Arizona court hearing the annulment case will determine parentage and enter custody and child support orders.

Because an annulled marriage is legally regarded as never having been valid, courts in the majority of states lack the authority to award alimony or divide property or debts. This is because there cannot be a marital estate without a valid marriage. However, Arizona is unique in that it has a more generous statute. According to Arizona law, when a marriage is annulled, the courts must divide the property between the spouses.

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What Does The Chapter 7 And 13 Bankruptcy Trustee Do?

What Does The Chapter 13 Bankruptcy Trustee Do?

Learn more about Chapter 13 bankruptcy trustees, including what they do, how they are compensated, and how they manage your repayment plan.

When you file for Chapter 13 bankruptcy, the court will appoint a trustee to manage your case. You’ll learn about the Chapter 13 trustee’s responsibilities, how the trustee is compensated, and the role the trustee will play in your case in this article.

The Chapter 13 Bankruptcy Trustee’s Responsibilities

The trustee’s job in a Chapter 13 bankruptcy is to:

  • Make sure your proposed Chapter 13 repayment plan complies with all legal requirements.
  • Before you file, make sure you’ve filed your tax returns for the previous four years.
  • take advantage of the plan’s payments
  • Distribute plan payments to your creditors according to the law.
  • keep track of the required monthly income and expense reports in a Chapter 13 case, and
  • If you owe back child support, you must provide certain information to the payee and your state’s child support enforcement agency.

How are Chapter 13 Trustees compensated?

Trustees in Chapter 13 keep about 7%–10% of the payments they make to creditors. When deciding whether Chapter 13 is right for you, keep this fee in mind.

The Function of the Chapter 13 Trustee in Your Case

Many Chapter 13 trustees are involved in the cases they oversee. This is particularly true in small suburban or rural judicial districts, as well as in districts with a high number of Chapter 13 bankruptcy cases. A trustee might, for example:

  • provide you with financial advice, such as assisting you in the creation of a realistic budget (the trustee cannot, however, give you legal advice)
  • assist you in making any necessary changes to your plan
  • if you miss a payment or two, give you a temporary reprieve or take other steps to help you get back on track, or
  • Participate in any hearing about the value of a piece of property, and consider hiring an appraiser if necessary.
  • Your financial relationship with the trustee has its limits, despite the trustee’s interest in your finances.
  • You will have control over any money or property you obtain after filing, as long as you follow your repayment plan’s instructions and make all regular payments on your secured debts.

However, if your income or property rises during the course of your plan (for example, if you get a big promotion or win the lottery), the trustee can seek to amend your plan to pay your creditors a higher percentage of what you owe them rather than the lower percentage originally specified. If your income drops and you have to convert from Chapter 13 to Chapter 7, the trustee may become involved.

When you file for Chapter 7 bankruptcy, the court appoints a bankruptcy trustee to oversee the administration of your case. You’ll learn about the specific responsibilities of the Chapter 7 bankruptcy trustee in this article, so you’ll know what to expect before, during, and after the 341 meeting of creditors—the mandatory hearing for almost all filers.

What Does a Chapter 7 Trustee Do?

The Chapter 7 trustee examines the debtor’s bankruptcy paperwork and verifies his or her identification. However, these are minor responsibilities. The Chapter 7 trustee’s primary responsibility is to sell any property that the debtor is not entitled to keep and to distribute the proceeds to the debtor’s creditors. Thus, in any Chapter 7 bankruptcy case, the trustee’s primary interest will be in your personal property and any property you claim as exempt (that you have the right to keep).

Certain individuals believe that the trustee’s role is to assist the debtor throughout the process. The trustee’s role is to protect creditors, not debtors—although the trustee will be courteous and assist the case in moving forward. The best way to grasp this dynamic is to understand how the trustee is compensated. Continue reading.

Payment to the Chapter 7 Trustee

A Chapter 7 trustee is compensated a pittance of $65 per case for performing a cursory review of a debtor’s bankruptcy petition (as of August 2020). A Chapter 7 trustee, on the other hand, stands to earn significantly more. The trustee is compensated by the court a percentage of the funds distributed to the debtor’s creditors.

The funds could come from a variety of nonexempt sources (property that the filer cannot protect with a bankruptcy exemption), including money in the debtor’s bank account, nonexempt property that the trustee liquidates (sells), or funds that the debtor agrees to pay in exchange for the right to keep nonexempt property (more below). The trustee receives 25% of the first $5,000, 10% of the next $50,000, and 5% of any additional funds up to $1,000,000.

The Chapter 7 Trustee conducts an examination of the Bankruptcy Petition.

If all of your property is exempt (you get to keep exempt property), your case is considered a “no-asset” case—creditors will receive nothing. The bankruptcy notice sent to creditors will inform them that they are not required to file proof of claim forms because there will be no money available to pay them. However, they will be informed that this may change.

Under the supervision of the United States Trustee, the trustee is required to review your bankruptcy papers for accuracy and indications of possible fraud or abuse of the bankruptcy system. The trustee will review the documentation and look for indications that you are concealing or mischaracterizing assets. The petition and schedules, as well as the 521 documents you submitted prior to the hearing, will be reviewed (bank statements, paycheck stubs, profit and loss statements, tax returns, and the like).

After discovering nothing, the trustee will lose interest in the case. When the trustee has no property to seize and sell in order to pay your unsecured creditors, there is no commission to motivate the trustee.

The 341 Creditors Meeting Is Conducted by the Chapter 7 Trustee

You’ll meet the Chapter 7 bankruptcy trustee at your creditors’ meeting, which you must attend in order to avoid having your bankruptcy dismissed. The trustee will verify your identification, ask the mandatory 341 questions (along with any other issues raised by your paperwork), and allow any creditors who appear to ask questions (they rarely show up).

Generally, if all of your assets are exempt, the trustee will call the meeting to a close and you will not hear from the trustee again. You’ll complete your debtor education course and await the discharge of your debt.

If, however, you are unable to fully respond to the trustee’s questions, the trustee will postpone the creditors’ meeting and request that you submit appropriate documentation in the interim. Occasionally, the trustee may retain an attorney to pursue nonexempt assets you appear to own, or may refer your case to the United States Trustee’s office for further action if it appears as though you engaged in fraudulent activity.

Nonexempt Assets Are Seized by the Chapter 7 Trustee

If the trustee needs to seize and sell nonexempt assets, you must cooperate in delivering them to the trustee for disposition. Additionally, you can “repurchase” nonexempt assets from the trustee at a negotiated price or substitute exempt assets for nonexempt assets. Numerous trustees discount the property’s value by 20% and occasionally grant the debtor a few months to pay.

Search by the Trustee for Non-Exempt Assets

Many people are unsure whether a trustee has the authority to search their homes to ascertain whether they are concealing property. While such searches are unusual, as part of your obligation to cooperate with the trustee, you may be required to give the trustee a guided tour of your home or storage space. And if you refuse to cooperate, the trustee can obtain a court order compelling you to comply.

Abandonment of Non-Exempt Assets by the Trustee

If you own nonexempt property that is not worth much or would be difficult for the trustee to sell, the trustee can — and frequently will — abandon it, allowing you to keep it. For instance, regardless of how much your used furniture is theoretically worth, many trustees will avoid selling it. Arranging for the sale of used furniture is time consuming and rarely results in a significant profit for the creditors.

The Chapter 7 Trustee Issues Notices of Support Arrears

If you owe back child support, the trustee must notify the support claimant and the state child support agency in order to assist them in locating you following your bankruptcy discharge. Specifically, the trustee will inform the payee of his or her bankruptcy-related rights. The trustee will notify the state child support enforcement agency of the back support, the discharge, the debtor’s address and employer information, and the identity of any creditor holding a nondischargeable, reaffirmed, or a claim.

Both the payee and the child support enforcement agency have the right to request your last known address from these creditors. These creditors are permitted by law to release such information without incurring any penalties.

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What Does The Chapter 13 Bankruptcy Trustee Do?

What Does The Chapter 13 Bankruptcy Trustee Do?

Learn more about Chapter 13 bankruptcy trustees, including what they do, how they are compensated, and how they manage your repayment plan.

When you file for Chapter 13 bankruptcy, the court will appoint a trustee to manage your case. You’ll learn about the Chapter 13 trustee’s responsibilities, how the trustee is compensated, and the role the trustee will play in your case in this article.

The Chapter 13 Bankruptcy Trustee’s Responsibilities

The trustee’s job in a Chapter 13 bankruptcy is to:

  • Make sure your proposed Chapter 13 repayment plan complies with all legal requirements.
  • Before you file, make sure you’ve filed your tax returns for the previous four years.
  • take advantage of the plan’s payments
  • Distribute plan payments to your creditors according to the law.
  • keep track of the required monthly income and expense reports in a Chapter 13 case, and
  • If you owe back child support, you must provide certain information to the payee and your state’s child support enforcement agency.

How are Chapter 13 Trustees compensated?

Trustees in Chapter 13 keep about 7%–10% of the payments they make to creditors. When deciding whether Chapter 13 is right for you, keep this fee in mind.

The Function of the Chapter 13 Trustee in Your Case

Many Chapter 13 trustees are involved in the cases they oversee. This is particularly true in small suburban or rural judicial districts, as well as in districts with a high number of Chapter 13 bankruptcy cases. A trustee might, for example:

  • provide you with financial advice, such as assisting you in the creation of a realistic budget (the trustee cannot, however, give you legal advice)
  • assist you in making any necessary changes to your plan
  • if you miss a payment or two, give you a temporary reprieve or take other steps to help you get back on track, or
  • Participate in any hearing about the value of a piece of property, and consider hiring an appraiser if necessary.
  • Your financial relationship with the trustee has its limits, despite the trustee’s interest in your finances.
  • You will have control over any money or property you obtain after filing, as long as you follow your repayment plan’s instructions and make all regular payments on your secured debts.

However, if your income or property rises during the course of your plan (for example, if you get a big promotion or win the lottery), the trustee can seek to amend your plan to pay your creditors a higher percentage of what you owe them rather than the lower percentage originally specified. If your income drops and you have to convert from Chapter 13 to Chapter 7, the trustee may become involved.

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Divorce Frequently Asked Questions & When Is The Right Time To File For Divorce

In Arizona, divorce refers to a legal “dissolution” of marriage. You will go through a procedure in court to formally end your marriage. If you are the one who goes to court for a divorce, you will be identified as the “petitioner.” The other spouse will be identified as the “respondent.” Divorce in Arizona is not the same as in other states. Here are some answers to common questions most people have about divorce in Arizona.

Can I File for Divorce Anytime?

Either you or your spouse must have resided in the state for a minimum of 90 days before filing for a divorce at a local Arizona court. That is a legal requirement.  If there are children, they must typically be in the state for 180 days to vest custody jurisdiction, depending on the facts of the case.

Do I Need a Divorce Attorney?

Technically, you can represent yourself in court. However, it is highly recommended to get your attorney from your local area, like a divorce attorney in Phoenix. If you choose to self-represent, the court will assume that you know all the laws and rules pertaining to your case. You will have to follow court procedures on your own. A judge may disallow you to take certain actions if you do not properly follow court procedure. No one at court will be able to give you legal aid because they are barred by law from doing so.

You can seek legal aid if you cannot afford an attorney for your divorce. You can also petition the court to have the spouse pay for your attorney’s fees if your spouse makes substantially more income than you do.  Every case is unique.  

Do I Need to Give a Reason for Divorce?

Not in Arizona. The state has a so-called “no fault” clause, which means neither party needs to give a reason for the divorce. Moreover, the romantic escapades of Husband or Wife will have no relevance in the underlying dissolution action.  The mere desire to get a divorce is enough. In the court, only one spouse needs to claim that the marriage is “irretrievably broken “to finalize a divorce. The only exception is if the spouses have previously chosen a “covenant marriage”. Then, the petitioning spouse must provide ground or reasons for the divorce under state law.

What are A.R.S. and A.R.F.L.P.?

You will see these acronyms in the papers your divorce lawyer in Scottsdale or elsewhere files. The letters stand for particular legal statutes, or laws, in Arizona. A.R.S. refers to Arizona Revised Statutes, and A.R.F.L.P. refers to Arizona Rules of Family Law Procedure. You can go to the Arizona court or state websites to get access to these legal documents and rules if needed.  Ideally, you simply hire counsel and let them do their job to advocate for your rights in the underlying divorce.

What Do I Do if My Spouse Doesn’t Want a Divorce?

Too bad.  It’s going to happen anyway.  In cases where a spouse is morally against the divorce from advancing, there is little they can do to stop the case.  At best, the objecting spouse can request the court order a mandatory reconciliation counseling session which typically only pauses the case for 30 to 60 days. If at the end of reconciliation session, the spouses have not come to an agreement to postpone the divorce, the proceedings will go forward. Conciliation meetings are free of charge and rarely derail a case.  

If you have children, then your proceedings will be subject to a wide range of family laws in Arizona. The legal aspects you should consider will depend on the type of custody you seek. For more information, you should contact an attorney in your area.  Your children are your most treasured asset and case strategy and approach to maximize your custody is critical and experienced legal counsel even more important in such instances.  

Divorce is frequently a lengthy and costly process. Court proceedings can take months to complete. Simultaneously, the spouses may not get along and may be going through a difficult emotional period.

Additionally, the spouses may be experiencing financial hardship as a result of the household income being split and the need to support two separate homes. Having a plan in place for when to leave a marriage can help a spouse minimize the financial impact of the divorce. The following are some of the financial factors to consider when planning an exit from a marriage:

Market for Real Estate

If the couple owns a home together, one of the most important factors to consider when deciding when to divorce is the state of the real estate market. To afford smaller, separate spaces, the spouses may have to sell the house and split the proceeds. In contrast, the spouses may agree that one of them should continue to live on the property while the other receives other marital assets to compensate for his or her equity share. This step is best taken when the value of the property is high for the spouse who will receive other property. The spouse who will remain in the home, on the other hand, may prefer to divorce when the real estate market is weak so that he or she will not have to give up as many valuables to the other spouse.

It’s All About the Kids

If the couple has minor children or children who will be financially impacted by the divorce, this is an important factor to consider. A divorce involving minor children is significantly more difficult than a divorce involving no minor children. Lawyers devote more time to preparing arguments about child custody. A parent may also be obligated to pay child support for many years to come. Some states allow child support obligations to continue after the child reaches the age of 18 and may even require financial support while the child attends college. However, getting a divorce while your children are older but still dependent has a financial advantage in that they may be eligible for student loans or grants that they would not have been eligible for in an intact family. Many of these programs only consider the income of the custodial parent when determining financial aid eligibility.

Job Situation

The spouses’ employment status is another important financial consideration. In an ideal world, spouses will divorce when they both earn enough money to support themselves. This, however, is not always the case. It’s possible that a spouse’s hours have recently been reduced. A spouse’s job may have been lost. A person’s job may have been lost due to a sudden illness. When a couple is going through financial difficulties, it’s common for them to have problems in their marriage as well. Waiting for both spouses to regain financial stability or realign their careers may be difficult, but it may be preferable, especially if one spouse is required to pay spousal support to an unemployed or underemployed spouse.

Due to the separation of the spouses and their finances, a divorce often necessitates a slew of changes. One or both spouses may need to purchase new homes, vehicles, or change jobs. The economy can have a direct impact on whether these changes are feasible. If a spouse has been out of work for a long time, it may be difficult for him or her to re-enter the workforce during a downturn.

Divorce can have a negative impact on a person’s credit score. After a divorce, if spouses have neglected their credit, it can have a negative impact on their lives. Good credit is frequently required to purchase a home, rent a property, open a credit card in one’s own name, and in some cases, to obtain employment. If the parties are in a happy place in their relationship even as they consider divorce, they may want to wait a year or two so that they can both work on improving their credit scores before adding the financial strains of divorce. Another option is to try to stay in the same house or drive the same car so that the spouse is not forced to rely on good credit right away.

Income and Assets in the Future

Another factor to consider when deciding on the best financial time to divorce is the possibility of future income or asset acquisition. When deciding how to divide assets between spouses, many states do not consider the future. If a bonus, raise, or inheritance is on the horizon, it may be in the best interests of the spouse who will receive these additional funds to have the divorce finalized before receiving these funds. The other spouse may wish to postpone the divorce until these additional funds are received and can be divided.

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Chapter 13 Bankruptcy Cost 2021

Chapter 13 Bankruptcy Cost 2021

If you’re attempting to get out from under a mountain of debt, you’re undoubtedly thinking if Chapter 7 or Chapter 13 bankruptcy can help. Your next queries are likely to be how much Chapter 13 will cost and whether it will work for you once you’ve decided it’s the best option for your financial position. We polled readers throughout the country about their recent bankruptcy experiences in order to acquire some real-life answers to these issues. What we gathered from people who filed for Chapter 13 is as follows.

What Are the Fees for Chapter 13 Lawyers?

The law of bankruptcy is complicated and perplexing. Cases involving Chapter 13 can be very complicated, and mistakes might lead to major financial troubles down the road. So it’s no surprise that almost all of our readers (97%) hired a lawyer to assist them with the Chapter 13 bankruptcy procedure. Their legal fees often ranged between $2,500 and $5,000. However, the majority of readers (63 percent) paid $3,000 or less. Nonetheless, the average cost of $3,000 was more than double what other readers spent their lawyers to handle Chapter 7 bankruptcy cases. Because Chapter 13 cases take longer and need more labor, attorneys charge more for them. However, Chapter 13 has a benefit in terms of how attorneys’ fees are normally calculated: While the great majority of bankruptcy lawyers charge a flat fee for their basic services, they usually only require a down payment before filing the Chapter 13 bankruptcy petition. (You’ll also have to pay the filing cost, which is $313 as of December 2020.) The remainder of the attorney’s fee is then included in your Chapter 13 monthly payments, which means it comes out of the money that would otherwise go to your creditors.

When a Chapter 13 Lawyer Might Cost You More or Less

The fees charged by bankruptcy lawyers are determined by numerous factors, including their level of experience and location of practice. Attorneys’ fees, like other expenses, tend to be higher in large urban centers on the coasts. However, in Chapter 13 bankruptcy situations, there is another crucial issue to consider: The amount you pay your attorney must be approved by the court. Many courts set fee standards that they will automatically consider reasonable in order to make the approval process easier (known as “presumptive” or “no look” fees). The rules may also include a list of fundamental services that should be covered, as well as additional costs for business cases and additional services that may be required (such as filing plan modifications or motions). These assumed costs differ from one state to the next, as well as between districts within bigger ones. In a few populated states, examples of the range of presumed costs for essential services include:

  • $3,300 to $5,000 in California
  • $3,000 to $3,825 in Texas
  • $3,500 to $4,500 in Florida
  • $2,600 to $3,650 in Michigan
  • $4,000 to $5,100 in Virginia

Our findings backed up the conventional assumption that most lawyers will charge that amount or less for basic services in regions where the courts have set guidelines. However, if your case necessitates additional labor, such as when:

  • You own a firm as a solo owner.
  • Your home is worth less than what you owe, and you want to get rid of your mortgage obligation (or “discharge” it).
  • you wish to get rid of your college loans, or
  • When you declare for bankruptcy, you become a defendant in a lawsuit.

Source: https://www.nolo.com/legal-encyclopedia/chapter-13-bankruptcy-what-will-it-cost-and-will-it-work.html

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How Do Bankruptcy Exemptions Work

How Do Bankruptcy Exemptions Work

If you’re one among the millions of people who lost their jobs as a result of COVID-19, bankruptcy can help you clear your debts while keeping your retirement assets intact. You won’t lose your stimulus cash, though, because the new bankruptcy “recovery rebate” law preserves stimulus checks, tax credits, and child credits.

Exemptions from bankruptcy play an important role in both Chapter 7 and Chapter 13 bankruptcy. Exemptions are used in Chapter 7 bankruptcy to determine how much of your property you get to keep. Exemptions in Chapter 13 bankruptcy help you keep your plan payments modest. Learn more about bankruptcy exemptions and how they work by reading on.

What Are the Different Types of Bankruptcy Exemptions?

Exemptions allow you to keep a specific amount of assets, such as a cheap car, professional tools, clothing, and a retirement account, safe in bankruptcy. You don’t have to worry about the bankruptcy trustee appointed to your case taking an asset and selling it for the benefit of your creditors if you can exclude it.

Many exclusions cover specific property kinds up to a certain dollar value, such as a car or furnishings. An exemption can sometimes protect the asset’s total worth. Some exemptions, known as “wildcard exemptions,” can be used on any of your properties.

Is it okay if I keep my baseball cards? Jewelry? Pets?

The goal of bankruptcy is to give you a fresh start, not to take away all of your possessions. You’ll probably be able to protect other items as well, such as religious literature, a seat in a building of worship, or a burial plot, in addition to the fundamentals. Chickens and feed are even exempt in some states. However, you should not make the mistake of assuming that everything will be well.

  • Items of high value. There are no exemptions for boats, collections, pricey artwork, or holiday homes. Instead of filing for bankruptcy, owners with such valuable assets often sell the property and pay off their debts.
  • Jewelry. Many states provide protection for wedding rings up to a certain value. Don’t expect to preserve your Rolex, diamond necklace, or antique broach collection, though.
  • Pets. The dog or cat you rescued from the shelter is unlikely to fall into the trustee’s hands. Why? It’s not that you’ll have a specific exemption to protect it; rather, the trustee would have to pay more to sell it than it’s worth in most circumstances. However, if you own a valuable show dog or a racehorse with high breeding costs, you may be forced to sell it or pay for it in bankruptcy.

Exemptions: What Are They and How Do They Work?

Whether you’re filing a Chapter 7 or Chapter 13 bankruptcy, exemptions play a significant role.

Bankruptcy under Chapter 7

A liquidation bankruptcy is one in which the appointed trustee sells your nonexempt assets to satisfy your creditors. Because the bankruptcy trustee cannot sell exempt property, exemptions assist you protect your assets in Chapter 7 bankruptcy. If your state offers a $5,000 motor vehicle exemption and you only own one automobile worth $4,000, for example, you can keep it. See Exemptions in Chapter 7 Bankruptcy for more details.

Bankruptcy under Chapter 13

You can keep all of your property and rearrange your debts with a Chapter 13 bankruptcy (which can mean paying less on some of them). The amount you must pay specific creditors, however, is still determined by how much property you can exclude. Unsecured creditors who are not priority (such as credit card companies) must be paid an amount equal to your nonexempt assets. Exemptions assist keep your Chapter 13 bankruptcy plan payments modest by lowering the amount you must pay creditors. See Exemptions in Chapter 13 Bankruptcy for more details.

Bankruptcy Exemptions at the State and Federal Level

There are bankruptcy exemptions in each state. A series of exemptions is also provided by federal law. (See The Federal Bankruptcy Exemptions for further information.) Some states force you to use their exemptions, while others allow you to choose between their exemptions and the federal system (you cannot mix and match the two).

The state exemption rules you’ll be able to use will be determined by where you lived in the previous two years (called the “domicile requirements.”). Read Which Exemptions Can You Use In Bankruptcy? for more information on the distinctions between state and federal exemptions and domicile requirements.

Nonbankruptcy Exemptions in the United States

In addition to state and federal bankruptcy exemptions, there are a number of federal nonbankruptcy exemptions. These exemptions work in a similar way to bankruptcy exemptions in terms of preserving your assets. Nonbankruptcy exemptions from the federal government are only available if you use your state’s exemptions (you cannot combine the federal bankruptcy and nonbankruptcy exemptions). You can use nonbankruptcy exemptions in addition to state exemptions if you are using state exemptions. See The Federal Nonbankruptcy Exemptions for further details.

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How Much Does A Divorce Cost In Arizona? & Attorney Fees

On average, an Arizona divorce costs about $20,000. The average cost of divorce in Arizona without a Lawyer is $577. The average cost of divorce in Arizona with a Lawyer is $20,000. However, the average cost of divorce in Arizona can range from $15,000 to $100,000 per side when including expert witness fees.

Hiring a divorce lawyer in Arizona can cost as much as $550 per hour. The cost to file a Petition for Dissolution of Marriage Maricopa County is $349.  The responding party will be required to pay $279 when filing their Response, or if both parties have agreed to a Consent Decree, the $279 is still due and owing from the responding party when tendering a consent decree for the court approval. Want to find a cheaper way to get divorced in Arizona? Arizona collaborative divorce only costs about $10,000 per spouse.

*Disclaimer – These fees are always changing and this is not an actual quote. If you need an experienced divorce lawyer contact Canterbury Law Group to start your initial consultation.

These costs may include:

  • Monthly Child Support
  • Monthly Spousal Maintenance
  • The Division of Property and Debt
  • Attorney Fees
  • Waste Claims For Reimbursement
  • Claims for Breach of Fiduciary Duty
  • And more.
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How Much Does a Divorce Cost in Arizona?

Getting an Arizona divorce can be costly. However, how much you spend will depend on the type of divorce. A contested divorce with protracted proceedings will definitely cost more than an uncontested one. While there are no set rates, it is possible to get an approximate cost estimate based on historical averages of what divorcees spend on their cases.

According to some estimates, the average divorce case can cost as much as a new car. However, people typically do not spend more than $10,000 per spouse.

While costs will largely depend on attorney’s fees, most people do not realize it right away, but there are other costs to consider as well. Divorces that go all the way to trial will incur third party expenses for such things as depositions, a child custody evaluator, a business appraiser, and forensic accountants to present financial data to court. If the couple is divorcing with children, then the divorced parents will have to attend a Parent Information Program class. If the divorce diverts to a private divorce mediator, then that will be an additional cost for the mediator who typically charges an hourly rate.

How Much Does A Divorce Lawyer Cost In Arizona?

Most of the expenses will come from the attorneys. Consider, for example, the average cost of a divorce lawyer in Scottsdale. Family lawyers in the Scottsdale area charge between $250 and $550 per hour on average. If you hire an immensely experienced lawyer in Arizona, the cost can be as much as $400 to $750 per hour. In addition to the hourly rate, some lawyers also charge extra for drafting letters, printing documents, travel time, mailing, stamps and so on. Divorce lawyer fees in Arizona can total a combined average of about $20,000 per divorce.  However, there is no assurance that fees come in higher or lower than this figure because every divorce is truly unique.

After attorneys, those filing for divorces should expect to pay for outside expert witnesses. The divorce case may require the services of a mental health expert, business accountant, real estate appraisers, and many others. Collectively, these expert witness fees can cost as much as the attorneys. Of course, not all divorces require experts to testify or issue expert reports. If two people with a shared business or significant real property get a divorce, the expert fees can be meaningful. So how much does a contentted divorce cost in Arizona? In some contested divorces, total costs can range from $25,000 to $100,000 per side when including expert witness fees.

Learn more about Divorce In Arizona

How Much Does An Uncontested Divorce Cost in Arizona?

Divorces do not have to go to trial if certain conditions are met. If the divorcing spouses agree on the material terms of the separation, or if one spouse does not participate in contesting the divorce, then the case does not have to go to trial. As a result, the costs will be considerably less.

The divorcing couple can go to the court and file a Petition for Dissolution of Marriage. The court, depending on the county, will charge between $300 and $400 in filing fees. This makes the average court cost of an uncontested divorce in Arizona about $620. This does not include Arizona divorce attorney fees. If the two parties amicably divorce at this point, then only court fees will have to be paid assuming the parties are sophisticated enough to paper their own divorce.

If the divorcing couple needs legal assistance, for example, a divorce attorney in Scottsdale, legal fees at an hourly rate will have to be paid in addition to court fees. Some couples prefer to hire a mediator and legal counsel.  Mediators typically charge similar rates to attorneys. Overall, the fees of an uncontested divorce are far less in comparison to contested litigation.

If you are planning for a divorce, it’s best to talk to your spouse and amicably separate. Otherwise, you will have to be willing to pay a lot more for the lawyers to fight it out.

*This information is not intended to be legal advice. You can contact Canterbury Law Group today to learn more about your unique situation. You can also check frequently asked divorce law questions at Romano Law.

Learn more about Uncontested Divorce In Arizona

How Much Does Collaborative Divorce Cost in Arizona?

On average collaborative divorce in Arizona costs about $7,500.  Arizona collaborative divorce costs ranged from $5,000 to $10,000 according to Equitable Mediation. However, Canterbury Law Group has navigated many collaborations for less than $10,000 in legal fees per spouse.  This is a far cry from the tens of thousands of dollars that other couples inevitably can spend in a contested litigation in a court of law. Collaborative divorce is one of the peaceful divorce options, also known as amicable divorce.

Collaborative Divorce In Arizona

How Much Does Divorce Mediation Cost in Arizona?

Divorce mediation costs about $7,500.  Divorce mediation costs in Arizona ranged from $5,000 to $10,000.

Divorce Mediation in Arizona

What is the Average Cost of Divorce in Arizona?

The average cost of divorce in Arizona is $20,000. Arizona divorce costs ranged from $15,000 to $100,000 per side when including expert witness fees in. The cost of hiring a divorce lawyer in Arizona can cost as much as $550 per hour.

How Much Does a Legal Separation Cost in Arizona?

The complete cost of legal separation can vary enormously, from as little as $1,000 to in excess of $100,000 when matters such as alimony, child custody and having to work through the disposition of a very complex marital estate are to be decided. So, you can imagine, there are many factors coming into play to determine the total legal separation costs. Read on to learn more about these factors.

Legal Separation Cost

Arizona Divorce Attorney Fees

In a divorce proceeding, a request may be made to the judge by one party that the payment of the attorney fees for that particular party should be covered by the other party in the divorce process. The court can order attorney’s fees paid when the party being asked to cover the cost was not represented by legal counsel or when both parties were represented by legal counsel. The importance of this is delays and errors that are unintentional yet caused by the pro se litigant can have on the outcome of the award of the legal fees of the other party that were incurred when these mistakes were being dealt with.

A.R.S. § 25-324 is an Arizona statute allowing the for the payment of fees due to an attorney in cases of marriage dissolution. The court does have the discretion to award the attorney fees against a specific party in some circumstances.

When it comes to making a decision regarding a fee award, the court is obliged to objectively make an evaluation of how reasonable the legal positions were adopted by the parties during the divorce proceedings. The subjectivity of a spouse’s intentions is not taken into account when it comes to the decision made by the court and neither is the party’s lack of knowledge regarding family law, divorce law, local rules and court procedures. The court will examine the available financial resources of both parties before making a decision. What is more, the court will also take into account the financial disparity between the two parties and compare the fees that are owed versus the assets of each party and so on. In three circumstances, though, the court shall award attorneys’ fees against a party:

  • The petition was filed by the party in bad faith
  • The petition submitted by the party was not grounded in fact or the law
  • The party’s petition was filed for some “improper purpose, such as to harass the other party, to cause an unnecessary delay or to increase the cost of litigation to the other party.”

Other costs that may be considered for award include but are not limited to the following:

  • Deposition costs and expenses considered to be reasonably incurred during the litigation process and any following appeal
  • If the court makes the decision that orders money to be paid directly to the attorney of the requesting party, that attorney will be responsible for the enforcement of the order

Sources:

  1. “Alona M. Gottfried, Esq.” Arizona Mediation, azmediator.com/uncontested-divorce-arizona/.
  2. “How Much Does A Divorce Cost In Arizona?” Arizona Legal Center, 12 June 2018, arizonalegalcenter.org/how-much-does-a-divorce-cost-in-arizona/.
  3. 25-324 – Attorney Fees, www.azleg.gov/ars/25/00324.htm.

Need an Affordable Divorce lawyer in Scottsdale?

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The Canterbury Law Group should be your first choice when you need the best divorce lawyer in Scottsdale orPhoenix, Arizona. Our experienced family law attorneys will work with you to obtain the best possible outcome in your situation.  Proven trial lawyers in family court, you can trust the firm to represent you fully so you can get on with your life. Call today for your initial consultation.

Divorce & Legal Separation, Divorce Attorney, Divorce attorneys Scottsdale, Family Law, Family Law Attorney, Scottsdale Attorneys, Scottsdale Divorce
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What Is Custodial Interference?

What Is Custodial Interference

What does Custodial Interference mean? In simple terms, when one parent attempts to create disruption to the custody rights of the other parent of the child or children, this is known as custodial interference.

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Often a highly contentious issue, when custody orders are interfered with it can lead in some cases to consequences of a criminal nature. However, there are a very few situations where it may be legally permissible to temporarily interfere with the custodial rights of the other parent. The following are important facts you should be aware of regarding custodial interference and what can be done regarding it.

Types Of Custodial Interference

There are many ways custodial interference can happen. Here are some examples:

  • Making a visitation upon the child or children while the other parent is supposed to have custody of the child or children.
  • When the other parent has a planned and a scheduled visit, the refusal to release the child or children to the other parent.
  • Limiting the telephone or online contact the child or children has with the other parent.
  • Not returning the child or children on time for a planned exchange.
  • Using enticements to turn the child or children against the other parent.

However, in certain situations, custodial interference is not a violation of the law. For example:

  • When you are protecting a child or children from danger.
  • When previously made agreements disrupt custodial arrangements.
  • When outside events prevent a parent making a timely transfer of the child or children (bad weather being one example.)

What Can Be Done?

A parent can report to law enforcement and the courts any examples of custodial interference. Courts will often try to remedy the ongoing situation. Here are a few ways they try to achieve this:

  • Instituting revised and specific orders for visitation.
  • Instituting make up time for visitation purposes.
  • Family mediation or therapy.

Depending on the situation more severe intervention may be required – a parent may request greater relief. Examples include:

  • Third parties being present at supervised visits.
  • A neutral location being designated for the transfer of the child or children.
  • Reductions or loss of custody or visitation.
  • Fees and fines.

Many states consider custodial interference to be a felony or misdemeanor crime.

Source: “What Is Custodial Interference?” Findlaw, https://blogs.findlaw.com/law_and_life/2013/08/what-is-custodial-interference.html.

Speak With One Of Our Child Custody Attorneys In Scottsdale

(480) 744-7711
INITIAL CONSULTATION

Canterbury Law Group’s child custody lawyers in Phoenix and Scottsdale will advance your case with personal attention and always have you and your children’s best interest in mind when offering legal solutions. We can help with legal guardianship, child relocation, fathers rights, grandparents rights, and more. Call today for an initial consultation!

We are experienced family law attorneys and will fight for you to obtain the best possible outcome in your situation. Our firm will rigorously represent you, so you can get on with your life. Call today for an initial consultation! 480-744-7711 or [email protected]

*This information is not intended to be legal advice. Please contact Canterbury Law Group today to learn more about your personal legal needs.

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Custodial Interference By Grandparents

Custodial Interference By Grandparents

Child custody describes the legal relationships and status regarding a child or children and their legal guardians and/or parents. An individual with the custody of a child or children by default has all the responsibilities and rights of raising the child or children. This includes caring for the child or children and making choices and legal decisions for the child or children. The custody of a child or children can be granted by a court to anyone, meaning, a legal guardian can be the child or children’s, adoptive parents, biological parents, cousins, grandparents, siblings that are of legal age as well as friends, uncles and aunts. Read on to learn more.

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In most custody cases for a child or children, grandparents are often not given consideration, when it comes to visitation and securing custodial rights. Even when the grandparents have been separated from the child or children from their parents because of causes like divorce, death or the breakdown of communication between a child or children and their parent or parents.

Primary Arguments For The Rights Of Grandparents

  • The child or children can suffer from trauma when they no longer have contact with the grandparents.
  • Divorce or the incarceration of a child or children or if a child or children should die does not give the parent who has custody the right to sever the relationship the children or child has with their grandparents.
  • Grandparents offer a stable role in the life of a grandchild or grandchildren. This is especially the case for a child or children following a death or a divorce.

Primary Arguments Against The Rights Of Grandparents

  • As long as the parents are competent, the state generally has no right to interfere in the decisions of how those parents raise their child or children – meaning a parent has the right to exclude a visit from a grandparent, even when supervised.
  • There can be good reasons to exclude a grandparent or grandparents. For example, if they have a history of child abuse or interfere with the process of the conventional decisions competent parents make on behalf of their child or children. Also, some grandparents will bad mouth the parents of the child or children in front of them.
  • Grandparents and parents often have conflicts but even when parents are being irrational or unfair, interference from a court can make the home of the child or children less stable than before.

Currently, a grandparent visitation law does not exist nor is it protected in any shape or form in common law or the constitution of the United States of America. In the last 40 years, any statutes or laws on the books regarding the rights of a grandparent of a child or children are not similar from state to state. It is true all 50 states have visitation laws for a child or children as well as who may be permitted to have visitation with them after a case of child custody has been determined. These laws can consider, stepparents, parents and grandparents.

Approximately forty percent of US states only allow grandparents of the child or children to have rights of visitation and not any other person. The consequences of this are cousins; foster parents, stepparents or other relatives cannot be granted rights of visitation. However, in all of the fifty states, Grandparents are able to file a lawsuit in court in situations when they have been told they are denied the right to visit or see their grandchild or grandchildren when there is apparently no reason for them not to be allowed access to the grandchild or grandchildren.

Grandparents Rights In Arizona

In Arizona, the custodial rights of Grandparents are defined by statute A.R.S. § 25-409. Therefore, Grandparents maintain the right to be involved in the lives of their grandchild or grandchildren and if needed, to seek safe protection for them, on their behalf. Grandparents can seek legal assistance when the relationship between a grandchild or grandchildren has become broken in cases where the grandchild or grandchildren may be in risk or danger. These rights can help Grandparents retain involvement in the lives of their grandchild or grandchildren as well as protect their own rights as Grandparents. Some examples of where legal advice may be required include:

  • Parents refuse Grandparents involvement or even access to their grandchild or grandchildren.
  • Adoption, permanent custody or guardianship of a grandchild or grandchildren.
  • In cases of parental abuse of a grandchild or grandchildren.

Furthermore, Grandparents are realizing they have rights and can exercise them, examples include:

  • The filing of court petitions with the purpose of requesting continued visitation and access to their grandchild or grandchildren.
  • The filing of child custody petitions with the purpose of care of a grandchild or grandchildren.
  • The filing adoption petitions with the purpose of care for a grandchild or grandchildren.

Grandparents often seek legal advice on their visitation rights regarding a grandchild or grandchildren. There are legal requirements that must be gone through and met including the fact Grandparents must provide evidence their contact with a grandchild or grandchildren is in the child’s best interests. Some factors that are taken into consideration include:

  • The historical bond the Grandparent has with the grandchild or grandchildren.
  • A parental divorce of at least a minimum of three months.
  • A parental absence of at least a minimum of three months.
  • When a child or children are born out of wedlock.

Custodial requests by Grandparents are considerably more complex as a vital key to success will be providing convincing evidence the parents are unfit.  Grandparents seeking such relief will very likely need competent legal assistance to advance their case.

Source: Phoenixdivorceattorney. “Grandparent’s Rights in Arizona (Ultimate Guide for 2019).” Cantor Law Group, https://cantorlawgroup.com/grandparents-rights-in-arizona.

Speak With One Of Our Child Custody Attorneys In Scottsdale

(480) 744-7711
INITIAL CONSULTATION

Canterbury Law Group’s child custody lawyers in Phoenix and Scottsdale will advance your case with personal attention and always have you and your children’s best interest in mind when offering legal solutions. We can help with legal guardianship, child relocation, fathers rights, grandparents rights, and more. Call today for an initial consultation!

We are experienced family law attorneys and will fight for you to obtain the best possible outcome in your situation. Our firm will rigorously represent you, so you can get on with your life. Call today for an initial consultation! 480-744-7711 or [email protected]

*This information is not intended to be legal advice. Please contact Canterbury Law Group today to learn more about your personal legal needs.

Child Custody, Child Custody & Parenting Time, Divorce & Legal Separation, Divorce Attorney, Divorce attorneys Scottsdale, Family Law, Family Law Attorney, Scottsdale Attorneys, Scottsdale Divorce
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