Arizona's New Law Leaves Homeowners on Shaking Ground in Bankruptcy

TL;DR

A new law in Arizona will change the homestead exemption, making it more difficult to discharge judgments in bankruptcy starting January 1, 2022.

Transcript

hey everybody john skiva here and in this video i'm going to share with you something that's actually specific to arizona laws or at least a bankruptcy often i don't do this i keep things pretty general across the board but as i practice law in arizona i wanted to share with people who are thinking of filing for chapter 7 bankruptcy in the state of... Read More

Key Insights

• 🥳 Local legislatures have a significant impact on day-to-day lives, as evidenced by the passing of HB 2617 in Arizona.
• 👽 The new law increases the homestead exemption to $250,000 but eliminates the rule that judgments do not act as liens on homestead properties.
• 👽 Starting January 1, 2022, judgments will become liens on homestead properties, affecting bankruptcy filings.
• 🤪 Filing for Chapter 7 bankruptcy before the new law goes into effect may be advantageous for those with judgments and homestead properties.
• 👽 Bankruptcy attorneys may have to navigate additional hurdles to eliminate judgment liens under the new law.
• ❓ It is crucial to pay attention to local legislative activities, as they can have significant consequences for individuals.
• 🥶 Free consultations are available for individuals in Arizona considering bankruptcy filings, providing an opportunity to evaluate their options.

Questions & Answers

Q: How does the new law in Arizona impact Chapter 7 bankruptcy filings?

The new law changes the homestead exemption, making judgments act as liens on homestead properties, complicating the discharge of judgments in bankruptcy.

Q: When will the new law go into effect?

The new law, HB 2617, will go into effect on January 1, 2022.

Q: How does the homestead exemption currently protect homeowners?

The homestead exemption in Arizona currently protects homes from judgment liens, allowing homeowners to eliminate judgments in bankruptcy without affecting their property.

Q: What should homeowners with judgments against them consider?

Homeowners with judgments against them should consider filing for Chapter 7 bankruptcy before January 1, 2022, to potentially avoid the complications of the new law.

Summary & Key Takeaways

• A new law in Arizona, HB 2617, will change the homestead exemption, impacting the discharge of judgments in bankruptcy.

• Previously, the homestead exemption protected homes from judgment liens, but the new law will make judgments act as liens on homestead properties.

• The new law has implications for those considering filing for Chapter 7 bankruptcy, as judgment liens will become more difficult to eliminate.