I'm being sued by a Credit Union on a $23,000 loan. Trying to avoid bankruptcy and judgements. What's my best reponse? Advice?

You can propose any payment arrangement that you want: your creditors do not have to accept it. Arizona law only protects $150.00 in the bank: if your account is garnished, that money will be gone. You may want to take some asset protection steps: invest the money in an IRA, or in an exempt asset such as home repairs on your residence if you have less than $150,000.00 in equity.

You need to speak with a local debtor rights and bankruptcy attorney. Your options depend on many more facts and review of the debts, judgments, cases, and agreements. Good luck.

DISCLAIMER—This answer is for informational purposes only and discusses general legal principles, trends, and considerations and is not intended as specific legal advice regarding your question. This answer does not establish an attorney client relationship.

Unfortunately, the creditors can garnish your wages (if any) and place liens on your bank accounts. If you have assets that are non-exempt against collections or bankruptcy, the creditor can take actions to take these items from you in an attempt to satisfy the debts. The only clear way out is bankruptcy. If you qualify for a Chapter 7, both debts would be discharged at the end of your case. Otherwise, you would make payments for 3-5 years and then the debts would be discharged.

I would be happy to answer any questions you have. Please call to set up a time for us to speak.