Creditor’s Rights

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Limitation on Liability for Non-Working Spouse’s Premarital Debt

The Arizona Court of appeals issued its opinion in SQPR Venture, Inc. v. Robertson addressing the issue of whether a non-debtor spouse’s income can be used to satisfy a separate pre-existing debt of the debtor spouse (“Judgment Debtor”) when the Judgment Debtor provides non-financial support to the family as a stay at home spouse and [...]

By | September 4th, 2015|Creditor's Rights|0 Comments

Timeline for Trustee’s Sales in Arizona

The non-judicial foreclosure process in Arizona is known as a Trustee’s Sale. The requirements to complete a valid trustee’s sale fully set forth in statute. For those professionals that are statutorily identified as being qualified to act in a trustee capacity, the process is a “paint by numbers” procedure. A Trustee’s Sale is, by statutory [...]

By | November 7th, 2014|Creditor's Rights|0 Comments

Fraudulent Transfers: Looking Back Before the Debt

In an earlier post, Fraudulent Transfers and Creditors’ Rights to Collect, we discussed collection against an insolvent debtor. But what about a savvy future debtor who takes action to make sure a future debt cannot be collected? If an Arizona creditor is already owed money, it is not necessary to show fraudulent intent to prove [...]

By | October 10th, 2014|Creditor's Rights|0 Comments

Objections to Claims in a Bankruptcy

In certain cases, in order to receive a distribution in a bankruptcy case, it is incumbent upon the creditor to file a proof of claim. Filing a proof of claim is the first step in getting paid. Once the claim is filed, it is critical that the creditor monitor the bankruptcy, because there may be [...]

By | September 19th, 2014|Creditor's Rights|0 Comments

Terminology for Creditors: Chapter 13 lien stripping

In bankruptcy cases, the law generally provides a higher payment priority to secured creditors.  By removing liens through a procedure known as lien stripping, a Chapter 13 debtor is empowered to turn secured creditors into unsecured ones. Stripping a lien can only be applied to mortgage debt.  If a debtor owns a home and its [...]

By | November 14th, 2013|Creditor's Rights|0 Comments

Terminology For Creditors: REO and OREO

A property is foreclosed upon by a lender, but the property remains unsold after a foreclosure auction or Trustee’s sale. The lender still retains the property, which is now classified as an REO – “Real Estate Owned.” The original term from which REO is derived is OREO –“Other Real Estate Owned.” This is a term [...]

By | November 12th, 2013|Creditor's Rights|0 Comments

Storage Lockers and Liens in Arizona

Readers of this blog may be learning about how bankruptcy and creditor actions may impact a debtor’s property.  Now, let’s consider a less-common entity that is also subject to Arizona laws regarding creditors and personal property:  self-storage facilities.  There are occasions when liens may be placed against a debtor’s storage locker and its contents. Suppose [...]

By | November 8th, 2013|Creditor's Rights|0 Comments

Terminology For Creditors: Termination-Upon-Bankruptcy Contract Clauses

  A typical contract may contain a clause allowing one party to terminate the contract should the other party encounter financial trouble such as insolvency or bankruptcy. This type of provision is known as a “Termination Upon Bankruptcy” clause.  The specific contract language in such a provision is known as an ipso facto (i.e. “by [...]

By | November 6th, 2013|Creditor's Rights|0 Comments

Countering Strategic Default

Recently, news outlets across the country reported that government mortgage lenders Fannie Mae (FNMA) and Freddie Mac (FDMC) may soon be taking more aggressive legal steps against debtors who carry out a strategic default on their mortgage loans. Strategic default can be defined as what occurs when a borrower/debtor intentionally defaults on a loan, even [...]

By | November 4th, 2013|Creditor's Rights|0 Comments

Topics in Bankruptcy: LLCs and Creditors’ Rights

In the business entity known as a limited liability company (LLC), the individual members of the LLC are not responsible for the company’s debts and financial obligations when money problems arise. An LLC can have a single member or more than one member.  Depending on the circumstances, even though there is a single member, the [...]

By | October 31st, 2013|Creditor's Rights|0 Comments