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Arizona Bankruptcy Alternatives

The sites below were reviewed for content which is relevant to the Arizona bankruptcy issues appearing within this site. For more information regarding our selection of links, please see our review policy. If you have further questions, do not hesitate to email us at admin@arizona-bankruptcy.org. We welcome all sites submitted which are relevant to Arizona bankruptcy issues. We respond to all requests within 3 business days.


Financial Resources - Recommended Sites:

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  9. Bankruptcy Basics - Provides information on filing bankruptcy in each of the 50 United States. Download a copy of "Bankruptcy Basics", our free 72-page ebook.
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Recent Notable Opinions from Arizona Bankruptcy Courts

In re Deroche, decided January 29, 2001 by the United States Court of Appeals, 9th Circuit, on appeal from the Arizona Bankruptcy Court, Case No. 99-16058. This case clarifies the "dischargeability" of taxes in Chapter 7. In particular, state taxes and quasi-taxes are included within prohibitions regarding the discharge of taxes under the Code, based upon the intent and operation of state statutes. FACTS: The Debtor in this case operated a business as an employer. State law required the debtor to provide worker's compensation coverage for employees. Because the debtor failed to provide coverage, the State subsequently settled a disputed claim for personal injuries and paid an employee compensation under the State Workermens Compensation Act. Thereafter, the State sought reimbursement from the debtor/employer who, in turn, filed for Arizona bankruptcy under Chapter 7. The debtor requested the Arizona bankruptcy court allow discharge.  HELD: The Code provides that "an excise tax on . . .  a transaction occurring during the three years immediately preceding the date of the filing of the petition" is not dischargeable. 11 USC 523(a)(1)(A). Under Arizona law, an employer who fails to carry insurance is required reimburse the Special Fund for compensation paid to an uninsured, injured employee (plus penalties, fees and interest). Because payment to the state is provided by law, rather than by agreement, subrogation claims owed to the state are subject to the same liability and collection as state excise taxes and therefore are entitled to the same protection in Arizona bankruptcy courts. Camilli v. Industrial Commission, 94 F.3d 1330 (9th Cir. 1996).

Recent Notable Opinions of the Supreme Court of The United States:

Young v. United States, Docket Number: 00-1567 IN THE SUPREME COURT OF THE UNITED STATES, Argued January 9, 2002, Decided March 4, 2002. Cornelius and Suzanne Young failed to include payment with their 1992 income tax return filed on October 15, 1993. After filing Ch. 13, the IRS assessed tax liability and the Ch. 13 case was later dismissed for their inability to pay taxes through the plan. A new case initiated under Ch. 7 resulted in discharge of the Young's debts. Under the Code, the IRS generally maintains a priority for payment  for taxes due within three years of filing a petition under 11 USC 507(a)(8)(A)(i). This priority renders recent taxes non-dischargeable according to 11 U.S.C. 523(a)(1)(A). When the IRS subsequently demanded payment after the Ch. 7 discharge, the Youngs filed a motion to reopen their Chapter 7 case and specifically discharge all taxes demanded because liability arose before the 11 U.S.C. 507(a)(8)(A)(i) three-year look-back period. The District Court found for the IRS, holding the look-back period was tolled while the Ch. 13 case was pending, and further concluded the 1992 debt had not been eliminated by the Young's Ch. 7 discharge even though no objection to discharge was filed. The Court of Appeals affirmed the Arizona Bankruptcy Court. Held: In a unanimous opinion delivered by Justice Antonin Scalia, the Court determined the 11 U.S.C. 507(a)(8)(A)(i) look-back period was tolled during the pendency of the Chapter 13 case upon the filing of the petition. Justice Scalia reasoned the look-back period was tolled by operation of law because the Code does not explicitly prohibit equitable tolling in favor of the IRS. The implication of this decision affects all Arizona bankruptcy cases. The look-back period applicable to taxes assessed by the State of Arizona are also presumably tolled by initiating any Arizona bankruptcy proceeding.

The resources we list relate in some way to filing Arizona Bankruptcy, whether laws, discharge, reorganization or other topics. Vast bodies of law apply to Arizona Bankruptcy proceedings and are incorporated by the courts within each case. As new Arizona Bankruptcy laws are enacted each year, the scope of this website continues to grow.

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