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Sometimes we can control our financial situations. Sometimes we cannot. The reality of Arizona bankruptcy is that most people never intended to end up there. Many fight as long as possible to avoid it. In these trying times, many people are losing their jobs, confronting unexpected medical bills and job losses. As a result, many people find themselves with a debt burden they cannot overcome.

The federal and Arizona bankruptcy laws are designed to protect people from unreasonable debt burden. No matter how you got there – job loss, medical bills, mortgage underwater, skyrocketing expenses, divorce, job loss, or health issues – you may be able to find relief by filing for bankruptcy. The first step is to consult with an experienced bankruptcy attorney who will help you make a plan for a better future.

Early legal consultation is important. It may be that you need to stop making payments on debts that you cannot repay, such as credit cards and mortgages on properties you plan to surrender. Planning is important. You cannot simply give away your valuables and home contents to relatives and friends, expecting to hide them. In bankruptcy, people can keep most of their possessions, but full disclosure about your assets and any transfers must be made. We will be able to counsel you regarding allowable and prohibited transfers as well as property that is exempt from the claims of your bankruptcy trustee.

Allowable bankruptcy planning can protect some of your assets.

Understand that your credit score is probably already damaged. While a bankruptcy filing will have an adverse effect on your credit, you will be able to rebuild your credit faster than you may think. More importantly, the discharge of your debts will allow you to build a better future.

Once your bankruptcy petition is filed, all the collection phone calls and letters will stop, allowing you to regain your peace of mind.

Try to make peace with your situation. The federal bankruptcy laws exist to allow honest people to get a fresh start.

April 1st, 2020

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Most attorneys, whether or not they practice bankruptcy law, are familiar with the “automatic stay” of 11 U.S.C. §362(a). Amongst other things, it operates to stay collection actions, service of process, lien perfection, and judgment enforcement, upon the debtor’s filing of a bankruptcy petition. Creditors and their attorneys alike, however, are less familiar with the provisions of 11 U.S.C. §108(c), which extends certain non-bankruptcy time limitations for taking actions that are prohibited while the automatic stay is in effect. Section108(c) provides, in pertinent part:

“If applicable non-bankruptcy law . . . fixes a period for commencing or continuing a civil action in a court other than a bankruptcy court on a claim against the debtor, . . . and such period has not expired before the date of the filing of the petition, then such period does not expire until the later of — (1) the end of such period, including any suspension of such period occurring on or after the commencement of the case; or (2) 30 days after notice of the termination or expiration of the stay under section 362 . . . of this title . . . with respect to such claim.”

The extension applies equally to co-debtors (individuals jointly obligated with the debtor on a consumer debt) under chapter 12 or 13.

While the language of section 108(c) appears relatively straight-forward, it can be a trap for those unfamiliar with the provision. The most common example of section 108(c)’s applicability is when a statute of limitations expires while a debtor is in bankruptcy. Because of the automatic stay, the civil action cannot be commenced. However, section 108(c) extends the period to bring the action until 30 days after the stay is lifted, usually via court order or because the bankruptcy is dismissed. Many, unfamiliar with section 108(c), wrongly assume that a bankruptcy case tolls any applicable statute of limitations. This is incorrect. Under section 108(c), if the statute of limitations ran while the bankruptcy case was pending, then a creditor has only 30 days to bring its claim once the stay is lifted. This is true regardless of how long the creditor was “stayed” by virtue of the bankruptcy filing.

Similarly, the deadline is not tolled if it expires after the automatic stay has been lifted. Rather, a creditor has until the expiration of the deadline itself, unless such deadline expires less than 30 days after the lifting of the stay, in which case the 30-day extension of sub-section (2) applies. Put another way, a creditor gets the longer of the expiration of the statute of limitations or the 30-day extension.

Most Chapter 7 bankruptcies proceed swiftly to a discharge providing a creditor with certainty about the effect on its claim. In those cases, the creditor’s claim is likely lost and any applicable statute of limitations becomes moot. Many Chapter 13 bankruptcies, however, are active for several years before eventually getting discharged or dismissed. If dismissed, pre-petition creditors once again have the ability to try to enforce their claims through collection or litigation. But, they must act swiftly if the deadline to act ran while the bankruptcy was pending.

If you represent creditors, make sure to properly advise your client about any applicable statute of limitations and the effect thereon of section 108(c). Failure to do so could result in your client losing its right to collect on its claim.

April 26th, 2018

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Attorney Amanda Salvione spoke to ABC15 about the red flags to look out for when it comes to student loan scams.

August 21st, 2017

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Attorney, Adam Buck spoke with ABC15 about the current legal issues surrounding the proposed changes to student loans.

August 2nd, 2017

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Most people know very little about what bankruptcy really is. People from the “old school” may tend to view filing bankruptcy as a shameful act by those irresponsible who do not know how to manage their money. Or, even worse, an easy escape from debt they ran up intentionally and simply do not care to pay. But to the contrary, in reality, I find that my bankruptcy clients have often done almost everything possible to avoid bankruptcy–unfortunately sometimes to their own detriment.

As partner at Radix Law, most of my bankruptcy clients, including business owners, have tried their best in life and have done most things right. They have tried to manage their risks. They have tried to make responsible investment decisions. They have worked hard, become educated, grown businesses, saved money for retirement and have taken care of their health and their families. Some have been wildly successful but one thing no one has is a crystal ball.

Even the most successful businesses can fall flat in a struggling economy. People guarantee business debt because banks require them to, never thinking their carefully researched and well-structured business could fail. House and land values can plummet, like in the recent recession. People lose even the most seemingly secure high-paying jobs—even in a recovering economy. Those sorts of jobs can be the most difficult to replace. People get very sick and they also get divorced.

When things start to take a turn for the worst, most people wait longer than they should to consider bankruptcy options. For example, money saved in qualified retirement plans, like 401K accounts and IRAs, is protected in bankruptcy. Most people can keep their homes and their equity. Some (but not all) inheritances are also protected. But some people will go through their entire nest egg or sell their homes to avoid the perceived shame or stigma of bankruptcy, leaving them extremely financially vulnerable and emotionally spent.

So, while bankruptcy should remain something people should want to avoid, it is not always something they should avoid. It is intended to help honest, but unfortunate people who need a fresh start. Often that fresh start is a new business through which people can begin to contribute once again to the economy. Sometimes people or businesses reorganize their debt through a Chapter 13 or 11 because they just need a little breathing room. Considering bankruptcy is often the most responsible thing a person or a business can do.

May 8th, 2017

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PHOENIX – The Frutkin Law Firm has become the first Arizona practice to take advantage of the state bar’s trade name rule. It announced it will rebrand as Radix Law on Jan. 1 2017.

There is a long tradition in the practice of law: the name of a firm includes the surnames of the most prominent partners. As law has become such a big business over the past decade, the largest practices in the world are names of partners who have long since passed away.

This tradition was also required by the Arizona Bar until recently. Now, firms can ditch the commas in favor of a more universal trade name.

Radix, in Latin, means “root.” It can mean the root of a tree, the root of knowledge or the root of a number. While the firm’s attorneys come from all over the world, they have decided to be rooted in Arizona.

“Our new name reflects our values,” says Principal Jonathan Frutkin. “We are a business law firm that helps our clients pursue opportunities and fights for them when challenged – and we are rooted right here in Arizona. It is also an acknowledgement that we have grown from being a solo legal practice into a business law firm with almost a dozen lawyers.”

The Frutkin Law Firm was formed in 2007 and now has 11 attorneys with decades of experience. They serve companies, individuals and families throughout Arizona in business and corporate law and related areas, ranging from taxation and asset protection to bankruptcy and estate planning. Radix Law leads the Valley of the Sun in estate planning and trust administration law. Radix Law’s attorneys are respected sources in their field and contribute to local and national media.

About Radix

Radix Law, formerly The Frutkin Law Firm, was founded in 2007 by attorney Jonathan Frutkin with the goal of providing exceptional legal representation to clients throughout Arizona in business and corporate law and related areas. Radix helps businesses, individuals, and families in Phoenix and throughout Arizona with their corporate and business law, bankruptcy, taxation, asset protection, wills, trusts, and estates, and litigation needs. The firm is located at the Kierland Commons in Scottsdale. For more information, visit

December 30th, 2016

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At Radix Law, we have significant experience helping both business and individual clients navigate the complexities of Chapter 7, Chapter 11 and Chapter 13 bankruptcy cases.  Whether the bankruptcy involves complex corporate matters or a comparatively simple personal bankruptcy, our attorneys are committed to protecting the rights and interests of our clients, who include both debtors and creditors.

A Full-Service Bankruptcy Law Firm

Bankruptcy cases can be complicated, with no single solution that will meet every business or individual’s needs.  In some cases, with the assistance of a skilled bankruptcy attorney, it may be possible to avoid filing bankruptcy or achieve a loan workout with thoughtful pre-bankruptcy planning.  If bankruptcy is unavoidable, careful planning can help to optimize the advantages of a bankruptcy filing.  At Radix Law, we are adept at advising clients on all aspects of bankruptcy, including filing at the right time to maximize the benefits of a fresh start.

Individual Bankruptcy

Individuals seeking to declare bankruptcy due to overwhelming debt have two main options: Chapter 7 or Chapter 13 bankruptcy.  The type of bankruptcy you file depends on a number of factors, including your income and ability to repay the debt.  Chapter 7 bankruptcy is also known as liquidation because all nonexempt assets must be sold and distributed to creditors.  After these assets are distributed to creditors, the remaining debt is discharged.  In contrast, Chapter 13 bankruptcy requires debtors to make a payment plan rather than liquidate their assets.  You will be required to repay all or part of your debt based on a three to five year repayment plan, after which time, the remaining debt is discharged.  Both types of bankruptcy require the individual involved to receive credit counseling from an approved credit counseling agency.

Business Bankruptcy

For businesses, there are three ways to declare bankruptcy: Chapter 7, Chapter 11 and Chapter 13.  Radix Law has substantial experience handling all types of business bankruptcy and can guide and advise our clients through this often difficult and stressful time.

Similar to individual bankruptcy, Chapter 7 bankruptcy for businesses permits a company to liquidate its assets to discharge its debts.  A trustee is appointed by the bankruptcy court to take possession of the business assets and distribute them to the company’s creditors.

Chapter 11 bankruptcy is also known as business reorganization. The company must file a plan of reorganization detailing how it will repay its creditors.  If the court finds that the plan is fair and equitable, the plan will be approved.  This type of bankruptcy is exceptionally complex and requires the assistance of a skilled bankruptcy attorney with experience in Chapter 11 bankruptcies.

For small businesses and sole proprietorships, Chapter 13 bankruptcy may be an option for a company to get out of debt while maintaining the business.  This is a type of reorganization, where the business owner files a repayment plan with the court.  It has the advantage of avoiding liquidation of assets, and allowing small business owners to continue to operate the company during the process.

Bankruptcy Attorneys in Scottsdale, Arizona

For individual and business bankruptcy clients, Radix Law offers a client-centered approach to navigating the often complicated process.  Our attorneys have years of experience handling both bankruptcy filings and any disputes that may arise during a bankruptcy.  We are particularly skilled at handling the complex issues that may arise during a business bankruptcy matter. Contact our office today to learn more about how we can assist you with Chapter 7, Chapter 11 or Chapter 13 bankruptcy.

December 6th, 2016

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January 28th, 2013

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July 23rd, 2012

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February 27th, 2012

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