Some Debts Don't Die Easy: Arizona Bankruptcy Attorney

by John Skiba

In bankruptcy all debts are not treated equally, and sometimes, a creditor can petition the bankruptcy court to have its debt treated differently than other similar-type debts. For most, particularly those filing a chapter 7 bankruptcy, the bankruptcy process is pretty straight forward with few surprises. The typical chapter 7 bankruptcy begins when your case if filed with the bankruptcy court, you attend a meeting with your trustee, and then a few months later the discharge order is entered by the bankruptcy court eliminating your debts. However, some creditors are not so willing to accept their fate, and come out swinging.

The issues that arise most frequently in a bankruptcy are motions for relief from stay and determining the dischargeability of a particular debt.

Motions for Relief From Stay

As I have written about in the past, secured creditors (like car & house loans) are treated differently in bankruptcy than unsecured debts (like credit card and medical bills). Whether you are in a chapter 7 bankruptcy or a chapter 13 bankruptcy, once your case is filed with the bankruptcy court you are required to make the monthly payment as it comes due on the secured debt. So, if you haven’t been making a car payment or a house payment, once you file for bankruptcy it is expected that you will begin making that payment if you want to keep the asset. If you do not make the monthly payment, or if you are severely delinquent on your monthly payments, the secured creditor can file a motion asking the court to take away the protective stay it issued when your bankruptcy case was first filed.

The protective stay –called the “automatic stay”– stops collection efforts against you and your property. It stops trustee’s sales, garnishments, and law suits. However, a secured creditor that is not getting paid can ask the court to lift or remove the automatic stay as to their specific collateral. The process in removing the automatic stay begins with the filing of a written brief with the bankruptcy court called a Motion to Lift Stay. If you do not object to this motion the secured creditor can obtain an order lifting the automatic stay about two weeks later. Once removed the secured creditor can then proceed to foreclose on a home or repossess a car.


The purpose in filing bankruptcy is to obtain a discharge order from the bankruptcy court that eliminates your debts. However, the bankruptcy code provides that certain debts are not discharged through the bankruptcy process. Armed with these code sections a creditor can file a complaint with the bankruptcy court asking it to deem their specific debt “non-dischargeable” meaning that it will not go away through the bankruptcy process. The most common types of debts that may be non-dischargeable are:

• Student Loans

• Taxes

• Child Support

• Alimony

• Debts Incurred Through Fraud

There are many other types of debts that may be deemed non-dischargeable. For most debts, other than taxes and student loans, it will require that the creditor petition the bankruptcy court to make a determination that a specific debt is non-dischargeable.

While most bankruptcy cases proceed very smoothly, there are those cases where a creditor can cause some havoc. The good news is most of these situations can be handled in a satisfactory manner and you can still obtain your discharge.

Arizona bankruptcy attorney John Skiba offers a free bankruptcy consultation. He can be reached at (480) 464-1111.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© John Skiba, Arizona Consumer Law Group, PLC | Attorney Advertising

Written by:

John Skiba

Arizona Consumer Law Group, PLC on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Privacy Policy (Updated: October 8, 2015):

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.


JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at:

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.