Mark takes a creative approach to the practice of law as a result of his unique business background prior to law school in 1997. Mark has been an entrepreneur for over 30 years and has created, developed and directed businesses in financial services, international trade and distribution and professional services. Since becoming an attorney, Mark gained experience in Business Law, Foreclosure and Bankruptcy Law, Real Estate Law, Estate Planning and Asset Protection. For over 8 years Mark has been a talk show host on various radio stations and a frequent speaker at continuing education and seminar events for attorneys, real estate agents and other professionals.

1. ASU LAW CLE
March 29, 2013
BANKRUPTCY: BASIC CONCEPTS
AND APPLICATIONS
BANKRUPTCY: PROS AND CONS FOR INDIVIDUALS
AND SMALL BUSINESSES
UPSIDE DOWN REAL ESTATE:
STRATEGIC DEFAULT OR BANKRUPTCY?
Presented by Mark A. Winsor, Esq.

2. Mark A. Winsor, Esq.
Winsor Law Group
Location: 1237 S. Val Vista Dr.
Mesa, AZ 85204
Phone: (480) 505-7044
Fax: (480) 240-5936
Email: mwinsor@winsorlaw.com
Mark takes a creative approach to the practice of law as a result of his
unique business background prior to law school in 1997. Mark has been an
entrepreneur for over 30 years and has created, developed and directed
businesses in financial services, international trade and distribution and
professional services. Since becoming an attorney, Mark gained experience in
Business Law, Foreclosure and Bankruptcy Law, Real Estate Law, Estate
Planning and Asset Protection. For over 8 years Mark has been a talk show
host on various radio stations and a frequent speaker at continuing education
and seminar events for attorneys, real estate agents and other professionals.

3. BANKRUPTCY: BASIC CONCEPTS AND
APPLICATIONS
FOR MORE DETAILS:
WWW.WINSORLAW.COM
CLICK “ARTICLES” THEN ASU CLE

4. PURPOSE:
Balancing
Protection of debtors
Fair treatment of creditors
(by priority).

5. SUMMARY OF MOST FREQUENTLY
USED CHAPTERS
• CHAPTER 7: LIQUIDATION [FRESH START]
 QUALIFYING
[MEDIAN INCOME AND MEANS TEST RULES]
 PROTECTING ASSETS
(EXEMPTIONS AND PRE-BANKRUPTCY PLANNING).
 IF ASSETS TO DISTRIBUTE:
TO APPROVED CREDITORS BY PRIORITY.

6. Median Income
Household size Income Limit
1 42,691
2 55,479
3 58,292
4 63,201
Each additional 7,500

7. CHAPTER 11
REORGANIZATION FOR BUSINESSES AND “OTHERS”
 HELPING BUSINESSES TO SURVIVE.
IF IT WON’T “WORK” THEN CONVERT TO 7.
 PROTECTION FOR INDIVIDUALS
WHEN CHAPTERS 7 AND 13 DON’T “WORK”.
 DEBTOR IN POSSESSION:
MORE FLEXIBILITY; HIGHER LEGAL FEES /COSTS.
 FAIR TREATMENT OF CREDITORS BY CLASSES.
 PLAN CONFIRMATION.
CREDITOR VOTING, CREDITOR PRIORITIES AND OTHER ISSUES.

8. CHAPTER 13: REORGANIZATION FOR INDIVIDUALS
 QUALIFYING. NOT TOO MUCH DEBT.
SUFFICIENT INCOME.
 PROTECTING ASSETS (PAY PRIORITY AND SECURED CREDITORS AND
MORE TO UNSECURED THAN THEY WOULD GET IN A 7)
 PLAN CONFIRMATION: 3 TO 5 YEAR PLAN.
 CRAM DOWNS.
 LIEN STRIPPING.

9. BANKRUPTCY:
PROS AND CONS
FOR
INDIVIDUALS
AND
SMALL BUSINESSES

10. WEIGHING IN ON:
EMOTIONS
PRACTICAL MATTERS
MORAL ISSUES
FINANCIAL REALITY

11. CONS:
CREDIT ISSUES. (MORE PERCEPTION THAN REALITY)
MORAL AND SELF ESTEEM ISSUES.
 OTHER ALTERNATIVES, SUCH AS DEBT NEGOTIATION, DEBT
COUNSELING, DEBT RESTRUCTURE MAY BE LESS INTRUSIVE
INTO DEBTOR’S PERSONAL FINANCIAL AFFAIRS.
FAMILY AND FRIENDS WHO ARE ALSO CREDITORS WILL
BE NOTIFIED.
PUBLIC RECORDS. CREDIT BUREAUS FOR 10 YEARS
AFTER DISCHARGE; FOREVER ON SOME APPLICATIONS.

12. CONS:
PUBLIC RECORDS. CREDIT BUREAUS FOR
10 YEARS AFTER DISCHARGE;
FOREVER ON SOME APPLICATIONS.
TRUSTEE DISPUTES
(E.G. OVER EXEMPTIONS, FRAUDULENT
TRANSFERS, PREFERENTIAL PAYMENTS, AND MORE).

13. PROS:
FASTER FRESH START THAN DEBT NEGOTIATION OR ATTEMPTS TO
RESTRUCTURE OUTSIDE BK.
 SECTION 525 PROTECTION.
MORE CERTAIN PLANNING ABILITY.
 SOMETIMES THE ONLY OPTION TO AVOID GARNISHMENT AND
AGGRESSIVE CREDITOR TACTICS.
 MANY TIMES BK IS THE BEST OPTION TO REDUCE STRESS IN
FAMILY AND PRESERVE RELATIONSHIPS AND HEALTH.
 MANY TIMES A FINANCIAL NO-BRAINER.

14. UPSIDE DOWN REAL ESTATE:
STRATEGIC DEFAULT
OR BANKRUPTCY?

15. ANTI-DEFICIENCY STATUTES
 A.R.S. §33-814(g).
IF
PROPERTY IS A SINGLE OR DUAL
DWELLING ON 2 ½ ACRES OR LESS
AND
THE FORECLOSURE IS BY TRUSTEE SALE.

16. A.R.S. §33-729.
IF
PROPERTY IS A SINGLE OR DUAL DWELLING
ON 2 ½ ACRES OR LESS
AND
THE LOAN WAS TO BUY THAT PROPERTY
(PURCHASE MONEY).

17. DWELLING; NOT PRIMARY RESIDENCE.
REFINANCING AND BIFURCATION ISSUES.
DEBT FORGIVENESS TAX.
EXCEPTIONS: INSOLVENCY AND BANKRUPTCY.
NON-RECOURSE ARGUMENT.
NO NEED FOR BANKRUPTCY IF PROTECTED BY
ANTI-DEFICIENCY STATUTES
AND INSOLVENCY RULES.

18. SOMETIMES BANKRUPTCY IS NOT FEASIBLE
BECAUSE OF QUALIFYING ISSUES OR ASSET
PROTECTION ISSUES.
SOMETIMES BANKRUPTCY IS NOT DESIRABLE
BECAUSE OF EMOTIONAL, PRACTICAL OR MORAL
REASONS.
SOMETIMES BANKRUPTCY IS THE BEST WAY
(OR ONLY WAY) TO GIVE THE DEBTOR
ADEQUATE RELIEF (FINANCIALLY/EMOTIONALLY).

19. FOR MORE DETAILS AND
SUPPORTING INFORMATION:
WWW.WINSORLAW.COM
CLICK “ARTICLES” THEN ASU CLE