Arizona Bankruptcy Attorney Blog

Important Bankruptcy Recap: Don't Bank where you owe Money!

Tue, 29 Nov 2011 11:42:13 -0700

We tell clients this repeatedly.

Why mention this? It's simple: If a creditor (like a bank, for instance) has direct access to your bank account (as banks often do), then you can consider your checking balance dumped into the rancor pit as your creditor laughs their trademarked Jabba the Hutt laugh above you.

You know...

The pit? The one with a Rancor in it? From Star Wars?

Okay, let's put it this way then: If you owe money to a bank where you also store money in a savings or checking account, there's all kinds of technicalities that allow them to siphon the money out of your account without your knowledge or approval. If you owe money and have not made payments they will seize the opportunity, it's a proven fact. It is what they do.

If you're already filing a Bankruptcy then you may have glossed over some of the information you've been given because there's a lot relating to a bankruptcy that's occasionally hard to digest. This isn't one of those things you can sit around to consider; this is an immediate call to action that should have you setting up a bank account elsewhere ASAP.

You can't afford to wait for someone to remind you that you might want to keep your money, so take care of it before the bank makes it a moot point.

If you're still looking into your options to resolve your financial issues and Bankruptcy is on the list, you MUST keep this in mind. DO NOT bank where you owe money if you are filing a Bankruptcy in Arizona (or anywhere else for that matter), because the bank will swim around in your funds like Scrooge McDuck in his money bin, take photos of themselves with YOUR money and leave a bunch of zeroes lying around in your account.

In order to file a Bankruptcy, you'll have to stop paying your creditors and that includes credit cards. Often people will hesitate because they've worked so diligently to protect their credit score and bank accounts to date that doing things like not paying sounds ludicrous or dishonest. If you have misdirected feelings about protecting an unsecured creditor (this counts for ANY unsecured creditor) you need to stop paying them anyway prior to filing because failing to do so means that creditor will be sued by the trustee, which is a bigger hassle for everyone involved. Even the creditor that you were trying to protect.

If there's just one thing you take to heart from this, let it be that you won't be banking where you owe money when you file Bankruptcy. You need a bank account just on general principle, but you need a bank you can rely upon to store money instead of taking it.

It just depends on how much you care about keeping your money.

Jefferson County sets records in Chapter 9 Bankruptcy

Fri, 18 Nov 2011 12:22:44 -0700

Jefferson County is suffering, a roughly four billion dollar debt they cannot pay is forcing them to take the road many other cities are already debating: Chapter 9 Bankruptcy.

Since they are just north of FOUR BILLION dollars in debt, they have set both a record and have assisted in establishing a precedence that politicians and lawmakers have been worried about. The record for most substantial Chapter 9 to date was previously held by Orange County, California and their debt was just shy of two billion dollars making Jefferson County the largest Chapter 9 bk in the nation to date.

The precedent, however, is that cities following in this direction will have and example to drawn upon should similar investment have blown their debt out of control. Jefferson County's debt woes are primarily tied to a sewer system investment, similar to other costly attempts to better a city that led down this same path.

That said, expect to hear about two or three more cities making the same announcement within the next few months simply because it's still an option; that is until the Lobbyists persuade a new set of amendments out of Washington.

I hope that I'm wrong, but we'll find out regardless.

Occupation of Phoenix not going so smoothly

Tue, 08 Nov 2011 08:16:18 -0700

Wandering around downtown I came across the fabled Occupy Phoenix movement. It's not going as awkwardly as elsewhere, but it's clearly having issues of its own as a group.

They consist of normal people from various walks of life, though unlike the folks I had seen back east there were no threats of death or weird individual cries for blood. On the other hand, they seemed determined to turn on eachother as people holding signs argued like mad over... something.

They were arguing about what it was they were protesting.

It's been said that the lack of any coherent leadership has led to some serious problems for the Occupy Wall Street program. Inconsistent cries from large crowds upset by the lack of jobs and the sluggish lending by banks, the same banks that got a zero percent interest loan from our tax dollars.

There's a lot to be mad about in this economy. However, I'm not sure why these same people who came out for the same reason cannot agree on their lists of grievances. If they were producing a manifesto I could understand the tension, but at least they're organized enough to put things before a committee.

The occupation itself is also kind of stymied by city law forcing them to protest within certain hours of the day or at least ensuring no one stays the night on city property. I suspect that the City of Phoenix has seen the chaos reigning elsewhere and intends to nip that in the bud before it happens.

My understanding is that a lot of students are marching in this, which make sense since their debt is ridiculously difficult to discharge and even after graduation there's no jobs waiting for them.

We're massive proponents of changing the special status afforded to Student Loan debt in a bankruptcy because at this point the obvious gouging in inflated prices for education that gets them into nothing. They have to fight for jobs waiting tables, slinging java at a coffee shop or delivering pizza, and while there's nothing wrong with those jobs they aren't what these folks willingly put themselves into hundreds of thousands of dollars of debt to obtain.

Hawaii Couple loses Freedom and Child over stolen sandwiches in Safeway

Tue, 01 Nov 2011 17:13:17 -0700

So I get that businesses are fighting for every cent.

I do.

They have absurd overhead, gluttonous taxes and stiff competition in every industry just to stay afloat in these hard times, but the amount of trouble Safeway just bought nationwide is probably more expensive than the $10 they fought for on principle.

It's not like we condone shoplifting, but these folks paid for $50 worth of groceries and were arrested while their child was taken from them before they ever got so much as a reminder about the sandwiches the pregnant mother ate in the store. Criminal Defense isn't exactly my forte, but why did no one bring this up at the register when they were paying for things? You know, with money?

Safeway appears to have bitten off more than they can chew as being tough on shoplifters carries a very different image than a grossly overblown misunderstanding that results in parents having their child torn from their arms. This event is bad advertising that lasts and also stands as a cautionary tale that customers have to consider before entering the stores.

Management might misunderstand something a customer does, but customers won't know until they release the hounds.

Will Safeway go under as a result of this? Not likely, but that doesn't rule out Bankruptcy in Safeway's future now that Target has jumped into the whole "grocer" thing with both feet. Competition for your grocery dollars is tough, but it became much tougher for Safeway as a chain.

If Safeway isn't as "safe" as they pretend to be, why shop there?

Happy Halloween! Let's talk about Zombies or Zombie Debt Collectors!

Mon, 31 Oct 2011 08:00:03 -0700

Even though Zombies are pretty scary, Joseph reminds us that there's plenty of scary stuff already shuffling about in the streets today. Often seen shuffling up to a card table in a large closet or something to peruse a list of people who they need to call and harass.

With great emphasis being placed on HARASS.

Keep a powerful grip on your wits should they call because if they manage to harass you into compliance and pry a payment out of you this bad experience costs you a lot more than the non-existent debt they're calling on.

A Recent Client Testimonial

Fri, 28 Oct 2011 17:37:23 -0700

When people want to express how much they liked us it's usually our practice to refer people to our review areas.

However, we just helped some incredibly nice folks who had the following to say about our firm (and added that posting this on the site was okay by them):

Mr. McDaniel & Nina,

We would like to take a few minutes of your time and tell you thank you very much for all the work you did and all the assistance you provided us for our Chapter 7 Bankruptcy.

What else can be said that hasn't already been said by all of your other clients?

During the time it took us to make up our mind about filing bankruptcy we did what everyone else did. We asked others, we looked on the Internet and we met with a few attorneys. When we found Mr. McDaniel's blog we read through it for a week or two to make sure that we understood everything completely. After "doing" our homework and putting everything on paper we realized that we had to make an appointment to see you.

From the moment we met with Mr. McDaniel back in February 2010 we knew we had made the correct choice. His demeanor and attitude were extremely friendly and knowledgeable. Not one time during the initial 30 minute consolation did we feel looked down upon because of our situation. He answered every question we had, even though we probably asked the same questions every other client asks. He also made us feel important and feel that our case had his undivided attention.

After meeting with Mr. McDaniel he said if you would like to hire the firm, email or call him and he'll send out the paperwork. Not once was there any selling during the consultation. In order for us to do our due diligence we meet with another law firm (you know the big ones that advertise on TV) and discussed our situation with them. There were immediate red flags, the first one was at the free consultation they asked us to fill out paperwork that include our social security number, bank account numbers, etc. Then during the consultation we met with a well dressed "non-attorney" salesman type of person that kept saying that a Chapter 13 was our only choice. Needless to say once that meeting was over it was a no brainer that we were going to retain Mr. McDaniel's firm.

Once we paid the fee we got to meet with Nina. God Bless Nina for all of her patience and understanding. What seems like forever, we went back and forth with emails for many months asking questions and getting answers then finally when we were ready to file, I got an extra paycheck and we had to delay the filing for another 3 months. Nina laid it all out for us and like we told her before she is the professional who knows what she is doing so whatever she wanted us to do, we did. Once the petition was filed we had the 341 meeting and then it was time to wait. We waited for a long time, then we had a reaffirmation hearing and then finally we were discharged.

For something as life changing and as stressful as a bankruptcy, Mr. McDaniel and Nina did everything they could do to make it as painless as possible for us. Their extensive knowledge and expertise is incredible.

We would recommend Mr. McDaniel and Nina for any bankruptcy issues one would have. But before meeting with them, read Mr. McDaniel's blogs and do your homework. If you do that it will make a very complicated situation a little bit easier.

Additionally we would like to mention that we spoke with Heidi a few times and with Sean a few times. We didn't have much interaction with them, but from the times we did, they had the same expertise and compassion that Mr. McDaniel and Nina have.

Once again thank you very very much for everything. You truly have given us another chance.

Harrisburg, PA still pushing for Chapter 9 Bankruptcy while Mayor disputes legality

Mon, 17 Oct 2011 12:37:38 -0700

Harrisburg's City Council is pushing hard to advocate the Municipal Chapter 9 Bankruptcy, a move which will likely inspire other cities and states to follow suit should they succeed. Much like other attempts before them, elements within their own city are desperately seeking to stymie the efforts of the City Council, the loudest voice in attendance being the Mayor.

Joseph actually brought up Harrisburg before, he asserted that they were dithering unnecessarily. That instead of utilizing the one tool that could save them from being gobbled up by the state and set upon by their looming creditors, they kind of sat around waiting for it to happen. Or for something worse to happen than natural disasters and insolvency.

Something worse than defaulting Bonds, missed payrolls and a state takeover?

Now that they've taken Joseph's advice, or at least the City Council has made an honest effort to push forward, they're running into roadblocks. Kind of like how California tried to plug up the attempts of insolvent municipalities with Anti-Bankruptcy legislation.

Some critics are calling the movie irresponsible because the situation that will leave creditors swinging in the wind. However, this logic begs the questions of where they expect a trouble-riddled city to find the dough to pay for already overwhelming debt after a natural disaster, displaced citizenry and a massive investment that tanked its economy.

Rep. Glen Grell, Pennsylvania State Representative 87th Legislative District, is railing against it insisting that the greatest harm comes to Municipal Bond holders and joins Harrisburg's mayor, Linda D. Thompson, in labeling it an illegal action.

I realize these folks don't like how a bankruptcy would look on the City's record, but to date no one has a plan to revive the withering Economy in the fair city of Harrisburg. No way to bring jobs, industry or relief to the people of the city.

The most loathsome part of this is that the internal strife brought on by the mayor seeking to keep the city swamped with debt is creating more debt and keeping already existing debt alive. In fact, considering that the costs of her efforts to halt the attempt by the City Council to relieve the city of its debt are also coming out of the city itself this creates more problems than solutions.

Harrisburg can't pay payroll, but the mayor can hire legal counsel to keep the city up to its eyes in debt that it can't afford to pay.

I wonder what her next election platform is going to be?

Something about how heroically she fought to keep the city down in the muck? She selflessly shielded the city from debt relief? She spared no expense from Taxpayers to make sure the state wouldn't be able to pay it's debts and ensured there was no escape?

I admit that this is a scary precedent to set either way, but the option of seeking relief is vastly more hopeful than seeking solutions that simply aren't present as the city falls apart around them.

We'll probably find out more later today.

What happens to a Rolex watch in a Chapter 7 Bankruptcy?

Mon, 17 Oct 2011 07:33:38 -0700

At our office, we've noticed that merely having to list some specific assets cause clients to occasionally worry.

People care about their stuff, it's only natural. We get it. However, we're more concerned about the bigger picture: Getting YOU out from under the suffocating debt that pushed you to seek help in the first place being our primary bullet point.

And helping you is what we do. So we'll tell you the truth.

In these instances we have to be firm about what will happen to a high value asset, like a Rolex watch, and why it's not worth jumping back into the arms of your creditors trying to keep it. Or worse, trying to hide it from the Trustee.

Joseph put it like this:

"But what about my Rolex in my Chapter 7 Bankruptcy?"

Well, what about it?

Bankruptcy is no fun, none. And people who file bankruptcy should look at it the same way they look at a root canal; they should know it's no fun, especially compared to the pre-2005 Chapter 7 Bankruptcy process. And they have to play by all the rules, or risk their discharge or jail time.

Okay, lecture over. So what happens to the Rolex Watch in a Chapter 7 in Phoenix, Arizona, or anywhere in Arizona?

First, the exemption won't cover it; your exemption for a watch is about a hundred dollars, and that'll work fine for a used Timex, but a Rolex, even used, and even not ticking, is probably worth five grand or so.

The exact number is always in flux, because we're in a depression, and because Invicta makes a watch that's essentially identical to a Rolex for about a hundred bucks (it's also water resistant to the same depth as most Rolexes, and they come in automatic, which is what they call a watch that winds itself when your wrist moves)(and no, I don't get a commission on Invicta watches, but I sure like mine!).

That said, it depends. Some people sell their watch (which, at $5,000 or so, won't be exempt) to buy six months of food, fuel and provisions, which are exempt under the statute in Arizona (and by the way, if anybody can tell me exactly what "provisions" are, I'll be very grateful).

They need to list the sale on their statement of affairs, and be prepared to show the bankruptcy trustee exactly where they spent the money. If they sold the Rolex to a family member, or anybody else, for that matter, they must also be prepared to demonstrate that the sale price was more-or-less fair market value (DO NOT sell the Rolex, or the Corvette, or the $30,000 diamond ring, to a relative for a dollar. It's a clear fraudulent transfer, and it will bite everybody involved in the rear)(and DON'T GIVE the Rolex, Corvette, or the $30,000 diamond ring to a relative or anybody else for Christmas; ditto).

Anybody who does any pre-bankruptcy planning must remember the adage, "Pigs get fat, and hogs get slaughtered", which is most of the guidence provided by the caselaw on pre-bankruptcy planning. Both Judge Haines and Judge Curley have written instructive cases on the topic, and I'll post them when I get a Round Tuit (as opposed to a Square Tuit).

On the other hand, if a debtor files and lists the Rolex (and God Forbid they fail to list it, because they're risking their discharge and a jail sentence, and it ain't worth it, because they can just go to Amazon and get their Invicta!), the trustee will politely ask if the debtor wants to buy it back from the estate, or if he just wants it sold to pay administrative costs and creditors.

Some debtors become indignant at this suggestion, saying "But if they know you're broke, how can they request that?"

Well, it's not a request. A Chapter 7 provides an honest debtor with a fresh start, but nobody ever said it had to be a comfortable process (see "root canal", above).

And in general, if a debtor is attempting to discharge five million in debt relating to real estate (a not uncommon Arizona bankruptcy debtor) he probably ought to balance the inconvenience against the prospect of trying to pay the five million; and figure that if the Rolex goes into the estate, it's about the size of a tip. Paid by Jack Benny (this is an old person joke; if you have trouble with it, just move on along; nothing to see here).

Some debtors have pawned their Rolex; they need to list the pawn shop as a secured creditor, and if the amount owed the pawn shop is more than the trustee believes he can get from a sale of the rolex, the trustee might not object to the abandonment of the watch.

Of course, even if it's abandoned from the bankruptcy estate, so that the trustee has no further claim to it, the debtor is going to have to find money to pay the pawn shop to redeem the watch.

Harrisburg, Pennsylvania fighting for Chapter 9 Bankruptcy

Thu, 13 Oct 2011 14:39:06 -0700

The poor folks in Harrisburg, PA have had it pretty rough.

Massive flood damage that led to an exodus of over 10,000 people, huge unemployment and a big investment that never panned out.

They are taking the matter into their own hands in dealing with over 300 Million Dollars in debt.

There appears to be some dissent in the ranks, including the Mayor who insists that the city council went over her head and that the Bankruptcy is going nowhere.

More as it develops!

YES. We are still open for business.

Wed, 12 Oct 2011 11:05:00 -0700

To clarify: Although our firm's founder has passed away, he had forged a team of people strong enough to continue his work in his stead. We still continue to provide both people and businesses with expert Bankruptcy representation. In the very same compassionate way he taught us to serve our clients with professional distinction.

To meet with our firm for a free consultation, we only ask that you review the HOMEWORK first, then either call the office or email myself (sean@bankruptcyattorneyaz.com) or Steve (steve@bankruptcyattorneyaz.com) and we will set you up with an appointment.

Eulogy for Joseph McDaniel

Wed, 12 Oct 2011 11:00:52 -0700

Joseph C. McDaniel, Esq.
1950-2011

It is with an extremely heavy heart that I write this on behalf of Joseph's staff and myself. As many of you may already know, and for those of you who may not have read or heard, Joseph C. McDaniel passed away unexpectedly last week.

Joseph cared deeply about the profession of law and his chosen niche, bankruptcy. He devoted his career to becoming the absolute best at what he did. He became a Certified Specialist in bankruptcy, was AV rated by his peers and led the Bankruptcy Section of the Bar. His bankruptcy blogs reflected his amazing bankruptcy knowledge. He had a zest and a passion for sharing his knowledge with other attorneys especially those new to the practice of law. Many a lunchtime he would block out time to sit down with others and talk about what he loved most....bankruptcy law.

He lived his life with passion and enthusiasm, which was the way he did everything - always learning, then studying and then sharing what he knew. He became a prodigious blogger and savvy web marketer - rising to number one for the most competitive bankruptcy phrases in Phoenix. Joseph was always willing to support and encourage, he worked and strived for the best, and kept pushing for even better. Being good was fine, but Joseph wasn't good, he simply was the best.

He had a charm about him that people admired and a laugh that put a smile on your face. The joyful laugh at hearing something profound...the sparkle and glee of excitement about birthing and nurturing a new thought or idea...that was the essence of the man that I knew and so admired.

I want others to know what a special man Joseph was. His legacy, I believe, is to make each and every one of us care as much as he did, live our lives to the fullest, as he did, love life which he did, and teach and share with others. I can only try to do what Joseph did and will do my best to encourage the best in others. He always had a twinkle in his eye and a smile on his face. His light burned bright and that flame lit the way for others.

High ethical standards... the bar was set high. The staff and I will meet and exceed those client expectations. Joseph set the standards and would have expected us to carry that legacy forward. That spark, the enthusiasm, that charm and zest for life has been handed over to us...to pass on to others.

The only regret is there wasn't enough time. His life was cut short too soon. We can only try to do what Joseph did and we will do our best to teach and to encourage the best in others. The world is better for his having lived. We are better for having known him. Though his life may have ended too soon, it was a life complete in so many ways.

Rest in peace Joseph, your work is done and your torch will be carried on.

Jean Rice

Bankruptcy for the Diocese of Phoenix Catholic Church? Bishop Olmstead Says Wine Not Needed at Mass.

Sun, 25 Sep 2011 15:48:17 -0700

Bishop Olmstead is a brave man, and has strong beliefs.

In the video above, he responded to prior criticism.

But the criticism that he received previously may be dwarfed by the coming storm.

Because Bishop Olmstead has recently declared that wine will not be available at most Masses in Phoenix.

Many Catholics will be aghast and angry at the decision: after all, the relevant scripture says eat AND drink, and communion is the purpose of Mass.

Even priests are, well, surprised:

"The majority of priests were stunned and aghast at the announcement, and I hear some are planning to meet to see how best to respond. While the bishop has the authority to make this policy change, there is no scriptural, theological or sacramental rationale that makes any sense."

How angry will parishioners be at what many will see as a clear error?

Will it be enough to cause Catholics to seek other Churches, and drive the Diocese into bankruptcy?

Well, he who lives the longest sees the most; but I can't see a way that Bishop Olmstead will avoid reaping the whirlwind for this decision.

NASA Satellite Falls to Earth; Bankruptcy Ensues.

Sat, 24 Sep 2011 11:25:13 -0700

So there's a satellite, and it's falling.

That's not news.

I was a little surprised when NASA said they couldn't tell me where it would land.

I figured I didn't want to be there.

And now it's landed.

Somewhere.

Do you think that if the satellite landed on your office, your cash flow would continue unabated?

I've talked a lot about why it's better to be lucky than smart; obviously, if you can swing both, great. But if you have to chose, go for lucky every day of the week!

Because after Skylab falls on your corner grocery store, you won't be selling nearly as much for a year or two.

And your insurance company will say, in all probability, "We're terribly sorry. If it had been a brontosaurus that sat on your store, you'd be covered for that. Or if a nuclear meltdown had happened in your refrigerator, you'd be covered for that. Or if the store had been ransacked by werewolves, you'd be covered. But hit from above by space debris? No coverage. Sorry."

Then you get to litigate with the insurance company, but litigation takes a lot of time, and the insurance company has your premiums with which to pay a lawyer to fight you to prevent payment to you.

And if it looks like you're going to win, the insurance company may well decide that the money looks good in their pocket until you hit the courthouse steps.

Good business for them, I suppose.

And more bankruptcy cases for me, I know.

So look over your insurance policy from time to time. And see if there are a lot of stories on Google and Facebook about that company not paying claims.

There might be a reason that your premiums are so low!

Unemployment by Decree

Tue, 20 Sep 2011 09:43:24 -0700

Remember my "it's better to be lucky than smart" comments?

Yeah. Neither do I.

But when I read this article about a poor woman with a disabled husband who finally got a job during a depression, it made me very, very sad.

It also made me very, very angry.

I haven't decided what I'm going to do about it, but for starters I want everybody to know about the company that has no heart whatsoever.

And in a world where facebook exists, it's probably a good ideal to avoid doing things that make a lot of people angry.

After all, Old Spice unexpectedly went viral after some funny commercials.

Bad publicity spreads, just like good publicity.

So here's the article that made me cranky; read it, and if it makes you cranky too, ask yourself what you can do about it.

Me, I'm still thinking. But while I'm thinking about it, I'm talking about it, too! Here's the article by Laurie Roberts (and thanks for picking this up, Laurie!):

Laurie Roberts' Columns & Blog

Laurie Roberts is a columnist for The Arizona Republic.

Towing the line on the right to work (or not)

To look at her, Angela Dominguez doesn't appear much of a threat. She's a wife, the mother of four kids. A woman who hit the jackpot this summer, landing a $13-an-hour customer-service job for a local towing company.

Her husband is disabled and can't work, so getting the job at All City Towing was a hallelujah moment -- one that'll allow this formerly homeless family to pay the electric bill without city assistance, one that'll leave them with a little money left over for luxuries. Like school uniforms.

Or maybe not.

The nation's largest towing company -- Dominguez's former employer and the company that holds a city of Phoenix contract worth millions -- is demanding that she quit her new job or be fired. If not, both she and her new employer may be sued.

It seems she must hold the secret Coca-Cola recipe or whatever is the equivalent in the towing business. United Road Towing claims she signed an agreement not to work for the competition for a year.

The Illinois-based company's Arizona lawyer, Robert Mackenzie, sent Dominguez a certified letter on Aug. 25, demanding that she leave her job. Or else.

The "or else" includes threats of injunctions, lawsuits and damages, essentially a promise to cripple her financially "even if URT has not yet suffered any damages as a result of your violation of the Employee Non-Competition and Confidentiality Agreement."

Now, I understand the occasional need for non-compete clauses. They are generally required of people in positions of authority, executives and such who have actual information about a company that could be used by their competitors. But since when are $10-an-hour employees let in on the company secrets?

Dominguez, 36, who says she never signed such an agreement, went to work for URT in 2008. The family had been homeless the previous year, after her former employer closed its Arizona operation. Struggling to rebound, she was happy to get the $10-an-hour job as a call taker. For three years, she worked for URT, the last two as an administrative assistant.

Making it on $10 an hour was tough, she says, but she scraped by, with help from the city's utility assistance program, food stamps and an understanding landlord who never tacked on late fees. Still, after three years, the promised raises never materialized so she started looking for another job, which, in America, is generally allowed.

In June, she went to work for All City Towing, earning $13 an hour as a customer service agent. The extra $500 a month was a godsend, allowing her to meet her bills and even set aside enough for school uniforms for her 12-, 10-, 8- and 7-year-old children.

Well, you can imagine her reaction upon getting URT's letter demanding that she quit: Shock, bewilderment, fear - the 3 a.m. wide-awake-and-wondering-what-to-do kind of fear.
Not even $13 an hour leaves enough left over to hire a good attorney, after all.

Dominguez says All City's managers have never asked her about URT. Even if they had, she says she doesn't know anything confidential.

URT, which operates in Arizona as Shamrock Towing, Fast Towing and All Valley Impound, declined to explain what a $10-an-hour employee might know that would put the company at risk. Or why it's fair to close off options for low-level employees who apparently have no way of earning a decent living unless they leave. But the company did provide this statement:

"Arizona law recognizes and enforces these agreements and they are typical in industries where sensitive sales and marketing information is provided to employees such as Angela," Edward Arensdorf, senior vice president for URT's West Region Operations, wrote.

Jeff Dunn, general manager of Tempe-based All City Towing, says he has no intention of firing Dominguez - nor does he expect her to sign a non-compete clause.

"I don't know what knowledge she could possibly have that could threaten their business," he said. "If they're giving a $10-an-hour employee that knowledge, that's crazy."

That's also something for the Phoenix City Council to think about. URT's towing contract with the city expires on Nov. 30. Why on earth would the city -- meaning its taxpayers -- want to do business with a company that hires lawyers to stop its $10-an-hour employees from finding better jobs?

Dominguez says she liked working for URT, but the last straw came this spring, during a talk with her son.

"My middle son Roman told me, 'Mom, can you just get a job that you can take us to McDonalds once a month?' " she said. "I mean, it seems so little but for it to come out of my son's mouth. That's pretty sad, that I couldn't even provide them a Happy Meal."

The question these days isn't whether she can provide them a Happy Meal but whether she'll be able to provide them with any meal.

Once URT is done with her, that is.

(Column published Sept. 20, 2011, The Arizona Republic)

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