Oswalt Law Group Discusses Arizona Bankruptcy and Cash Allowances

PHOENIX, AZ--(Marketwired - Nov 17, 2014) - Arizona bankruptcy allows only a very limited amount of funds for debtors seeking protection under the bankruptcy code. Every state has its own set of exemption laws and under Arizona exemption laws, individual debtors may have only $300.00 in a single bank account on the date the bankruptcy case is filed, and married couples may only have $600.00 in a single bank account, or $300.00 in two separate bank accounts. Any excess cash on hand that debtors have when their case is filed is subject to a turnover request by the bankruptcy trustee. Failure to turnover excess funds or cooperate with the trustee can have many negative consequences for the debtor and their bankruptcy case.

The timing of a bankruptcy is, therefore, of crucial importance in Arizona. Many people now have automatic debits or withdrawals from their checking accounts that require them to deposit money into these accounts on a regular basis. If they fail to do so, they may risk missing payments; on the other hand, if they deposit too much money, they may find that they run afoul of the Arizona bankruptcy exemptions with regard to money in their bank account when the case is filed. This could result in possible problems for the debtor and obstacles for the progress of the bankruptcy case.

According to Oswalt Law Group, a bankruptcy firm in Phoenix, "There are things to consider when meeting the $300.00 limit when filing a bankruptcy case. If you have online bill pay, or use a debit card, a debtor will want these pending transactions to clear the account prior to case filing, so these items are not counted towards the overall balance in their account when the case is filed. The debtor will also want to make sure they are not receiving any payroll direct deposit in their bank account the same date the case is filed, as these funds will count towards the $300.00 or $600.00 bank account limit. It is very important to consider how much you have in your bank account when planning to file a bankruptcy, as you may lose that money if you file at the wrong time. Therefore, advance planning is essential for anyone who is contemplating an Arizona bankruptcy."

Those considering filing bankruptcy may wish to seek the advice of professionals who understand the bankruptcy laws and have years of experience in handling bankruptcy cases. The Oswalt Law Group in Phoenix can help individuals and businesses ensure that they are in compliance with all bankruptcy laws while still benefiting from the protection of a bankruptcy filing.

About Oswalt Law Group: As a full-service bankruptcy representation law firm in Phoenix, Oswalt Law Group has helped hundreds of individuals and businesses recover from financial insolvency by filing for protection through bankruptcy.