Blog Posts: Bankruptcy

A federal trial court judge in Phoenix denied a plaintiff's attempt to freeze an opponent's assets before trial. The Court’s reasonings offer a useful roadmap for what to do and what to avoid when attempting to lock down assets early in commercial litigation. An Arizona tech services company (Clutch) sued its vendor (Acronis) claiming Acronis kept charging them ...

If your business employs W-2 workers, chances are you’ve dealt with a wage garnishment. They’re common and can be confusing, especially when something doesn’t seem right and your employee is asking why the deductions haven’t stopped. This article explains what a wage garnishment is, why employers usually can’t stop one on their own, and what to do if a cr...

Contracts for the sale of land or goods often impose “conditions precedent.” This means something must occur before a claim or duty arises. There are many distinct types of these provisions, but a fairly standard condition precedent clause reads as follows: “If Party A fails to comply with any provision of this contract, Party B shall deliver a notice to Par...

When a creditor obtains an Arizona judgment, the first task the Judgment Creditor usually completes is recording the Judgment with the appropriate Arizona County Recorder’s Office, being sure to include a Judgment Debtor Information Statement. Subject to certain homestead exemptions which are outside the scope of this article, the Judgment then becomes a lien on ...

The Fair Debt Collection Practices Act (“FDCPA”) is a federal law that establishes protection for consumers from abusive debt collection practices. The FDCPA covers debt used for “personal, family, or household purposes” incurred by a consumer.   Generally, when people think of the FDCPA, they are considering credit card debt, third party-debt buyers, med...

Arizona-based employers ask us, “Can we be held liable for the debts of our employees?” The short answer is maybe. However, the risk lessens if the employer follows some best practices. For many employers, they do not know much about their employees’ finances. Unless the position or the employer required a credit report as a condition of employment, or contin...

Credit scores are important and frequently determine interest rates and can even impact insurance rates. For many years, judgment creditors could enforce their judgments in a variety of ways. Prior to 2017, judgment creditors often enjoyed passive enforcement. A judgment debtor might have been motivated to resolve the judgment to improve their credit score, obtain ...

Video Transcript: What do Creditors Need to Know about Litigation in State Court? When proceeding in state court, or where a company hasn’t filed for bankruptcy protection, there can be many issues. It depends if the creditor has an unsecured debt, meaning there is no collateral, or if the debt is securing, meaning there is collateral. In either case, a cred...

Because he is my friend, he offered to settle and pay me outside of the bankruptcy and he agreed to not include my debt in the bankruptcy case. Can I do this? No. Once a bankruptcy case is filed an automatic stay goes into effect, whether or not you have actual notice of the bankruptcy filing, which prevents you from taking any action to collect your debt, includi...

I. Introduction Little attention has been devoted to the relationship between the Registrar of Contractor's Recovery Fund and bankruptcy.  The recession required new attention to the interplay between bankruptcy and the ROC. II. The Customer's Options First of all, even before that customer receives formal notice of a bankruptcy filing, if you have received w...