John N Skiba’s Answers

There are no ramications for you, but your friend needs to be aware that the bankruptcy communicates through the mail, so it is vital that your friend have an address on file with the bankruptcy court where they are able to get mail in a timely manner.

You can file for bankruptcy. A Chapter 7 bankrutcy will help you rid yourself of the medical debt and Arizona's exemption laws should be able to protect all of your assets. As for your house and car, if you want to keep them you need to continue to make the payment. If you do not want to keep them you can surrender them through the bankruptcy and have no future liability. I am a bankruptcy attorney here in Mesa and would be happy to speak with you if you have further questions.

Yes you can be sued. However, until they sue you they can't do much more than be annoying (i.e. call you night and day). If they do sue you then you run the risk of garnishment of wages or your bank accounts. If you have additional debts you should consult with a bankruptcy attorney to see what options it will provide you.

Exempt assets will not be affected during bankruptcy. You should contact a divorce law attorney in regards to any possible impact during a divorce proceeding.

They apply in all debt collection scenarios, not just bankruptcy.

The land will typically go through a trustee's sale here in Arizona. If there is a balance still owing, then they can sue you for that balance. Once they obtain a judgment against you, they can record it and it will act as a lien on any real estate in your name in that particular county. They can also garnishment bank accounts and wages. Bankruptcy will get rid of this type of "deficiency judgment" and they will not be able to collect on it.

Your son will not go to jail, but his creditors can make life very difficult for him in that he will likely be sued and have his wages and/or bank accounts garnished. He really seems to be in a situation where bankruptcy should at least be looked into.

The statute of limitations begins running at the time when you first defaulted on the card. You could interpret this to be the first missed payment, but the safer analysis would be after a few missed payments. This would be the time when the credit card company first knew or should have known that you were going to default on the card and could have brought a law suit. It is also important to make sure that your credit card is set up as a revolving account, and not just a regular loan....

Here in Arizona if the creditor needs to determine what assets you have, they will likely schedule a Debtor's Exam. These are usually held at the Superior Court. You will have to appear with documentation on your assets and provide the creditor's attorney with the opportunity to review your documents and may even have to give testimony as to what assets you have. In many cases this hearing will result in some sort of arrangement between the parties as to a settlement of the case.

Any time there is a business involved I recommend that you seek out the advice of an attorney. You need to understand that while a chapter 7 may be a good option for your personally, it could impact your business and in a worst case scenario result in the liquidation of your interest in the business. Check with an attorney before making any additional decisions.