Financial eyes are focused on data recently released by the U.S. Bankruptcy Court for the District of Arizona showing August had the highest number of new filings this year, while also being the first month of 2022 to have more new filings than the same month in 2021.
Bankruptcy filings are considered a lagging indicators of financial stress and economic health, and the number of new filings goes up and down from month to month. However, billions of dollars from various federal stimulus programs have ebbed in 2022, meaning no more Paycheck Protection Program, no CARES stimulus checks to individuals, and the end of the federal foreclosure moratorium.
Some Arizona families and businesses may no longer have a lifeboat, according to commercial debt collection company ABC/Aemga.
“Companies that have struggled throughout the pandemic, but were kept afloat by stimulus money and generous lenders, may face trouble during the rest of 2022 and into 2023 once those funds run out, as the Fed continues to tighten its ultra-loose monetary policy by reducing asset holdings and raising the Fed Funds Rate target, and credit conditions start to tighten,” the company warns.
Sectors such as retail, construction, health care, and certain manufacturers adversely affected by higher raw material and labor costs remain particularly vulnerable, while travel, hospitality, commercial real estate, consumer goods, entertainment, midstream oil and gas, and power and other energy infrastructure also face pressure and uncertainty, according to ABC/Amega.
For the first eight months this year, there were 5,879 new filings statewide, down from 6,765 for the same period in 2021. Slightly more than 12 percent of this year’s new cases were filed pro se, or without legal representation.
If the August pace continues for the rest of 2022 the total filings for the year in Arizona will come close to last year’s total of 9,353. By comparison, there were 12,903 filings in Arizona in 2020 and 16,237 in 2019.
The majority of new cases filed in the state as of Aug. 31 this year were under Chapter 7 (4,803) followed distantly by Chapter 13 (1,029) and Chapter 11 (46). There has also been a lone Chapter 12 filing.
While households and businesses in Maricopa, Pima, and Pinal counties lead in filings of as Aug. 31 at 3,887, 896, 439 respectively, Yavapai and Mohave counties have similar totals at 151 and 146 respectively.
The three border counties of Cochise, Santa Cruz, and Yuma have 80, 42, and 106, respectively. Meanwhile, Apache (4), Coconino (29), Gila (28), Graham (17), Greenlee (3), LaPaz (7), and Navajo (44) represent less than 2.3 percent of all filings in the state as of Aug. 31.
What happens when retaining an attorney is not an option during a divorce, bankruptcy, or other non-criminal type of legal matter? In Arizona, one option is to work with a legal document preparer who is certified under rules adopted by the Arizona Supreme Court.
Legal document preparers may provide general legal information—such as what form is needed and which deadlines apply—but may not give legal advice. All individuals and businesses offering such a service without the supervision of an attorney in good standing with the State Bar of Arizona must satisfactorily pass a Legal Document Preparer Program.
Several attorneys told AZ Free News they regularly refer people to a legal document preparer for matters that don’t necessarily need an attorney, such as an uncontested divorce without children. A legal document preparer is also much better than going it alone when affording an attorney is not an option, they say.
“It’s certainly something attorneys don’t want to publicize, but we would certainly rather see someone have the professional services of a document preparer than try to go it alone in court,” one attorney explained.
There are now dozens of legal document preparers throughout Arizona, all of whom must be certified under rules set forth by the Arizona Supreme Court. Some preparers work for themselves but most are employed by a business which also must be approved by the Court.
One of those is AZ Legal Documents by JoJo, owned and operated by Georgiana “JoJo” Aguilar, who began working in Cochise County as a paralegal in 2004. She later opened her own company and is certified as the company’s designated principal. This means she is responsible for every document that leaves the office even if one of her employees prepares it.
AZ Legal Documents by JoJo specializes in family law matters, including divorce and legal separation, child custody and child support, guardianships, and wills. Aguilar also offers services for bankruptcy, real estate, and several other non-criminal matters. Those areas of law have frequent rules changes, requiring Aguilar and her staff like all certified legal document preparers to undergo continuing education each year.
“We are able to ensure our customers have the correct form or forms needed for their situation,” she said. “We also have the experience to know what the Court needs to have with the form, which can save customers time and money.”
Another legal document preparer business is East Valley Legal which is owned by Chelsea Woodworth, who is a member of the Board of Nonlawyer Legal Service Providers.
Woodworth, who also owns a legal paraprofessional firm called Chelsea Legal PLC. in Mesa, worked as a Crime Victim Advocate, an Undercover Private Investigator, and for the Department of Homeland Security prior to entering the legal field in 2013. She is a Legal Paraprofessional with endorsements in Limited Jurisdiction Civil and Family Law, a Certified Legal Document Preparer, and an Advanced Certified Paralegal.
The experience Woodworth brings to the field is one reason she is a member of the Board of Nonlawyer Legal Service Providers.
The Board of Nonlawyer Legal Service Providers next meets Sept. 26 at the Arizona Supreme Court at 1501 W. Washington Street in Phoenix. The public may join the virtual meeting or attend in person.
Following the Supreme Court (SCOTUS) rejection of a constitutional right to abortion, two Arizona organizations still advertise abortion funding. They’re the Abortion Fund of Arizona (AFAZ) and the Tucson Abortion Support Collective (TASC).
AZ Free News reached out to AFAZ and TASC for comment. AFAZ confirmed that they’ve continued providing abortion funding, but TASC never responded with comment.
AFAZ serves all of Arizona, offering funding on a first-come, first-serve basis according to their monthly budget, averaging 40-50 callers a month. In order to qualify, pregnant women seeking abortions must have an appointment scheduled at an abortion clinic. Pregnancies over 16 weeks gestation are prioritized. AFAZ also offers resources for other logistics: meals, gas, Rhogam vaccine, and childcare funding, as well as transportation and lodging arrangements.
In 2020, AFAZ pledged over $100,000 to women seeking abortions, and in 2021 they pledged over $80,000.
AFAZ launched in 2017 through Pro-Choice Arizona. Pro-Choice Arizona and AFAZ once operated under the NARAL Pro-Choice America network, but achieved independence in 2019. Pro-Choice Arizona is also a member of the Arizona Reproductive Justice Coalition.
Current members of the Arizona Reproductive Justice Coalition include Organized Poder, Parteras De Maiz, and Trans Queer Pueblo. Black Lives Matter (BLM) Phoenix-Metro was one of their past members.
Funding abortion is a radical act of compassion. This year we have seen a drastic uptick in financial need, especially due to the ongoing economic loss and struggle from the pandemic. Become a monthly donor to support abortion access! https://t.co/JP60e1ttkGpic.twitter.com/Jpiz6yWKFH
TASC serves Southern Arizona. In addition to assisting with abortion funding, TASC offers logistical resources such as transportation, legal aid, “abortion doula services,” and walkthroughs of Arizona’s abortion law.
On their website, TASC warns pregnant women against crisis pregnancy centers. TASC claimed that these centers are “designed to intentionally mislead women” with “medically inaccurate information about pregnancy, fetal development, and abortion” and “lies, manipulation, and threatening or intimidating language.” As proof of their claims, TASC links to NARAL Pro-Choice America’s article, “The Truth About Crisis Pregnancy Centers.”
TASC then lists the crisis pregnancy centers in the Tucson area.
Playwright and actor Lin-Manuel Miranda, announced earlier this month that TASC was one of the abortion services receiving funds from his “Hamilton”-affiliated campaign to support abortions, “Hamilton 4 Choice.”
The announcement came about a week before Miranda served a cease-and-desist to a McAllen, Texas church for putting on a Christianized version of “Hamilton,” edited to discuss Biblical values.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
The Arizona Attorney General’s Office (AGO) has been reached an agreement to provide $400,000 to fund a new radio dispatch system for the Colorado City Police Department in an effort to improve emergency response times along the Arizona / Utah border.
Earlier this year, the Arizona State Legislature appropriated the funds to the AGO via House Bill 2862 for the express purpose of identifying ways to replace the outdated communication system relied on by police, fire, and EMS personnel in Colorado City, its sister city of Hildale, Utah, and surrounding areas of Mohave County.
“Every second counts during an emergency, so law enforcement requires efficient communication technology,” said Arizona Attorney General Mark Brnovich. “Our office is pleased to work with Colorado City’s police department to help ensure that its officers have the equipment needed to provide the fastest response times for residents of Northern Arizona.” Rep. Regina Cobb (R-Kingman) chaired the House Appropriations Committee which earmarked the funds. It was then up to Brnovich’s staff to work with Colorado City Police Chief Robb Radley to ensure the money is spent as intended no later than June 30, 2023.
“Reliable radio communications are critical to ensure an effective and timely response in emergency situations, especially in rural communities,” said Representative Regina Cobb, Chairwoman of the House Appropriations Committee. “I’ve been proud to work with Arizona Attorney General Mark Brnovich and his office to help secure this important public safety funding for the Colorado City Police Department.”
Among the provisions of the agreement is that the new radio system must meet at least minimum industry standards. Copies of all quotes, bid proposals, purchase orders, invoices, and receipts must be submitted to the AGO within 30 days of purchase and any excess funds not expended by the deadline must be returned to the AGO.
Radley took over the beleaguered department in August 2019 despite the fact a 2017 federal court order was in effect related to years of corruption, illegal conduct by some officers, and discriminatory services toward non-members of the Fundamentalist LDS Church. The agreement signed earlier this month by Radley signals a major step in his continuing efforts to improve emergency response services to the community.
“The Colorado City Police Department’s police, fire, and EMS communications center are extremely grateful to the State of Arizona, Representative Regina Cobb, the Attorney General’s Office, and Attorney General Mark Brnovich for the opportunity to further upgrade the center with modern radio communications,” said Radley. “The radio system will ensure first responders have the best opportunity to provide the highest quality of services possible for the residents and visitors of Northern Arizona.”
Arizona may place another major company on a list of prohibited investments for allegedly boycotting the state of Israel. It would be the second company deemed in violation of Arizona’s ban against Boycott, Divestment, Sanctions (BDS) of Israel. Arizona already placed Unilever on that list over the Israel BDS enacted by its subsidiary, Ben & Jerry’s.
Arizona Treasurer Kimberly Yee gave the Chicago-based financial services company, Morningstar, 30 days to prove that they weren’t boycotting Israel. In a press release on Monday, Yee shared that her office suspected Morningstar of boycotting because its subsidiary, Sustainalytics, employed environmental, social, and corporate governance (ESG) policies that punished companies doing business in Israel with poorer scoring.
Arizona doesn’t have any public funds invested in Morningstar presently.
Yee said that ESG-focused companies benefitting from taxpayer dollars victimize other companies in order to advance “woke political gamesmanship.”
“ESG ratings are a political scorecard, not a financial scorecard,” said Yee. “I will not allow companies to promote policies that are antisemitic and discriminatory efforts against Israel, which is America’s longtime friend and ally, and a significant trade partner with Arizona.”
AZ Treasurer Kimberly Yee gave Morningstar 30 days to prove their ESG ratings do not violate Arizona law, stating that she "will not allow companies to promote policies that are discriminatory efforts against Israel."
— Office of the Arizona State Treasurer (@AZTreasury) August 23, 2022
In her letter, Yee pointed Morningstar CEO Kunal Kapoor to his company’s own 117-page report investigating Sustainalytics released in early June. Morningstar insisted in an affiliated press release that it didn’t support boycotts of Israel, and cleared Sustainalytics of boycotting accusations. However, Yee said that pages 69-73, 86-93, and 97-99 of the report proved otherwise.
“ESG, in itself, is a subjective exercise and suffers from inherent bias. While [the] report says there was no bias against Israel, that is not the question presented to us under Arizona law,” wrote Yee. “The very fact that Sustainalytics has chosen to review companies doing business in Israel under the guise of its ESG ratings system, violates Arizona law as your company is ‘performing actions that are not intended to limit commercial relations with entities doing business in Israel.’”
ESG began in 2004 when former United Nations Secretary General Kofi Annan convened over 50 CEOs from the top financial institutions in a bid to influence markets. Annan’s coordination prompted the rollout of early ESG models, such as the New York Stock Exchange’s Principles for Responsible Investment (PRI) in 2006 and the Sustainable Stock Exchange Initiative (SSEI) in 2007.
Today, ESG models award scoring to measure companies based on equity-based initiatives. For example, environmental criteria might include waste reduction efforts or natural resource conservation; social criteria might include restorative justice initiatives or reproductive care funding like abortions; and governance criteria might include weighing issues that impact company stakeholders.
Unilever reversed Ben & Jerry’s boycott in late June. They repudiated the ice cream company’s actions, insinuating that they were antisemitic. However, Yee didn’t reverse the state’s divestment.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
