1) You must live in Arizona for 90 days before you can file in an Arizona Bankruptcy court. 28 USC 1408(1). However, you will still have to use the Colorado Bankruptcy exemptions. You have to live in Arizona for 2 years to use the Arizona Bankruptcy exemptions. Bankruptcy Stat. 522(3)(A).
2) Social Security disability income is exempt. Private disability income is not exempt.
3) If a Bankruptcy is filed after December 31 and before the refund is received, that refund can be taken by the Bankruptcy court.
4) Recoveries for personal injuries are exempt.
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I think I misunderstood your question, as I thought you were asking about the exempt status of disability for a Bankruptcy.
All disability income - Social Security and private - is exempt from collection in Colorado. Colorado Stat. 26-2-131. And also in Arizona. Arizona Stat. 33-1126(A)(4).
However, private disability income is not exempt from consideration for the Means Test in a Bankruptcy petition.
1) What is the market value of the house? What is the balance on the mortgage?
2) How much is the lien judgment for?
3) What is the lien judgment for?
Sorry this took so long.
If you file a Bankruptcy, those liens can be removed. Since your mortgage is more than the value of the house, the lien holders cannot do anything about the lien - they cannot take the house or sell it, or anything else.
However, the credit card companies cannot garnish your disability, even though it is private disability. Private disability is exempt from credit card companies.
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