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income exempt??

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    income exempt??

    any input will be appreciated
    with all my research I have been under the impression that my private disability benefits which is my only income. is exempt from wage garnishment or judgment. Now I have just gone for my free consultation with the AZ bankruptcy attorney and he says in the state of Arizona private disability is not exempt only if it was Through 3rd party (employer). and all can be seized if I file bankruptcy 7 like planned. does anyone know if this is correct? He read me the statute and says he understands it the opposite of the way I read it. I am really thrown for a loop here.

    thanks in advance, Mike

    #2
    See a few other attorneys. If this attorney stated to you after he read you the statute that he "understands" it the opposite of the way you read it, to me that may show inexperience when it comes to your situation. Get a few more consultations.
    _________________________________________
    Filed 5 Year Chapter 13: April 2002
    Early Buy-Out: April 2006
    Discharge: August 2006

    "A credit card is a snake in your pocket"

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      #3
      Hi Mich:

      Welcome to the Forum. According to the NoloPress Ch7 book, on page 311, under the list of exemptions for Arizona, under the heading: INSURANCE: Health, accident, or disability benefits LAW: 33-1126(A)(4)

      When I went to the Arizona Revised Statutes, that paragraph reads:

      "4. All money, proceeds or benefits of any kind to be paid in a lump sum or to be rendered on a periodic or installment basis to the insured or any beneficiary under any policy of health, accident or disability insurance or any similar plan or program of benefits in use by any employer, except for premiums payable on such policy or debt of the insured secured by a pledge, and except for collection of any debt or obligation for which the insured or beneficiary has been paid under the plan or policy and except for payment of amounts ordered for support of a person from proceeds and benefits furnished in lieu of earnings which would have been subject to such order and subject to any exemption applicable to earnings so replaced."

      Link to the entire page:



      I am not a lawyer, and certainly don't live in AZ--beautiful state BTW--but it seems to me that your disability is exempt. I agree with Flamingo; go get some more consultations.

      Good Luck!
      "To go bravely forward is to invite a miracle."

      "Worry is the darkroom where negatives are formed."

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