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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I am moving to AZ from CO.1) how long must i live in AZ before

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I am moving to AZ from CO.1) how long must i live in AZ before I can file chapter 7. 2) also, is disability pay exempt 3) how is a tax refund handled in an az bankrupcy if received before filing bankrupcy. I am also in litigation on a personal injury suit from an auto accident. 4) Is any award that i may receive (accident occured in CO) exempt

Hi JACustomer,

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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Customer: replied 5 years ago.
i have 2 credit card judgements against me and another on the way. I was unable to pay last month. I had agreed to pay but now i missedJan and will miss feb too. what is their recourse. it sounds like the courts can take part of my disability pay. what percentage of my pay can be taken if the courts and 3 c card companies garnish my CO and what percentage in AZ. I also own co own a home that is up for short sale. what might i expect
Customer: replied 5 years ago.
CO exemptions---anything unusual about the exemptions I should know? any quirky things?
also will the judgements and garnishment or lein on the house go away after I file in AZ. (house is in CO and judgements are filed in CO

Thank you for accepting my answer!

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?

Customer: replied 5 years ago.
mortgage balance=292,000 and I'm behind 2 months
judgement 1=6600
judgement 2 =3300
dont know how to negotiate the latest issue that was served to me yesterday. I am on disability pay and there are 2 crcard leins on the house already. do I just cut to the chase and tell them to go for a lein or to garnish my disability pay

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.

Edited by cfortunato on 2/1/2011 at 7:32 PM EST
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