Law Office of D.L. Drain, PA

09/24/2025

Sep 9, 2025 9:15 AM Eastern Daylight Time

Diane L. Drain, Esquire, to Receive the 2025 American Inns of Court Bankruptcy Distinguished Service Award

ALEXANDRIA, Va.--(BUSINESS WIRE)--Diane L. Drain of the Law Office of D.L. Drain LP has been selected to receive the prestigious 2025 American Inns of Court Bankruptcy Distinguished Service Award, which recognizes a judge or attorney specializing in bankruptcy law who has exhibited ongoing dedication to the highest standards of the legal profession, the rule of law, and personal ethics and integrity. Drain will receive the award at the National Conference of Bankruptcy Judges in Chicago in September.

“I can attest to Diane’s dedication and commitment to pro bono service, and our entire Arizona legal aid community has benefited from Diane’s ongoing contributions to the field of bankruptcy,” writes Sharon E. Sergent, executive director of Community Legal Services (CLS), who nominated Drain on behalf of CLS and the Volunteer Lawyers Program (VLP). “Even more importantly, Diane has served a myriad of clients who are so desperate for legal assistance through her ongoing pro bono service as a CLS/VLP pro bono attorney, her creation and dedication to serving pro se litigants at the Self-Help Center at the Arizona Bankruptcy Court, her never-ending mentorship, and her willingness to teach and train attorneys and assist clients by representing them directly or assisting them with representing themselves.”

Drain earned her undergraduate degree in criminal justice from Arizona State University in 1983, then earned her law degree from the University of Arizona Law School in 1985. Before law school, she spent 15 years as a paralegal and law office administrator. Drain founded her law firm in 1990 after working at a large firm and specializes in debtor bankruptcy rights, with an expertise in Arizona foreclosure.

Drain developed the Volunteer Lawyers Program at the Arizona Bankruptcy Court and provides pro bono services to CLS/VLP clients as well as offering bankruptcy-related webinars to the public. She and another consumer bankruptcy attorney also established a mentoring group of approximately 100 consumer bankruptcy attorneys; called the Arizona Consumer Bankruptcy Counsel. The organization is actively involved in mentoring consumer bankruptcy attorneys, education programs for attorneys, the bankruptcy court staff and Arizona consumers, and making legislative changes to protect consumers.

In 2023, Drain received a Bankruptcy Attorney of the Year award from CLS/VLP. That year, she also received a Foundation for Justice award for giving her time and expertise to change the justice system to promote access and opportunity for the most vulnerable.

The American Inns of Court, headquartered in Alexandria, Virginia, inspires the legal community to advance the rule of law by achieving the highest level of professionalism through example, education, and mentoring. The organization’s membership includes nearly 30,000 federal, state, and local judges; lawyers; law professors; and law students in more than 360 chapters nationwide. More information is available at www.innsofcourt.org.

Contacts

American Inns of Court
Contact: Cindy Dennis
Awards & Scholarships Coordinator
(571) 319-4703
[email protected]

06/25/2025

Shame Due to Money Problems Can Make Everything Worse
Created On June 25, 2025

family struggling with chains of stress, debt and shame.

Money Problems Lead to Shame, Which Leads to Making Bad Decisons
Money problems are hard enough on their own—but what if the way we feel about our finances is actually making things worse?

A groundbreaking study published in the Journal of Economic Psychology by researchers Gladstone, Ly, Wilcox, and Mazar reveals a troubling emotional trap: shame doesn’t just follow money problems—it fuels it. Their work identifies a powerful cycle called the financial shame spiral, where people’s embarrassment or self-blame about money leads them to avoid their finances, make worse decisions, and deepen their hardship.

Read more:

Money problems are hard enough on their own—but what if the way we feel about our finances is actually making things worse?

02/11/2025

Some time ago I published an article about the Arizona Supreme Court‘s terrible decision that those who live in RVs, motor homes, trailers, or houseboats—basically anything that is not a traditional stick or manufactured home—can lose their home to credit card companies or if they file for bankruptcy protection. Well, now a few good attorneys are doing something about that horrible decision. Plus, two other court decisions that prey on those with lower income. Here is a Channel 12 report. https://www.12news.com/article/news/politics/arizona-family-filed-bankruptcy-wound-up-homeless-arizona-lawmakers-want-make-sure-never-happens-again/75-22dc1c57-fe12-491d-8559-5620b29c4db2

ACBC (www.ACBC.org), a group I started in 2005 to protect consumers and educate bankruptcy attorneys, is sponsoring three bills that will directly help protect those who are forced to file bankruptcy. We are trying to protect those living in RVs, motor homes, trailers, houseboats, etc. Also, those who depend on childcare tax credits to pay for food. Lastly, stop the bankruptcy trustee who sells the debtor’s home in order to personally benefit from the sale if there was any appreciation after filing the bankruptcy.

Read more: https://dianedrain.com/help-arizonans-save-their-homes/

07/03/2024

Hidden Costs of Health Savings Accounts
Created On July 3, 2024

The Consumer Financial Protection Bureau (CFPB) released a report delving into the hidden costs consumers are forced to pay for health savings accounts.
May 1, 2024 The following is a reprint from CFPB’s website (provided for educational purposes only)

Consumer Financial Protection Bureau signThe Consumer Financial Protection Bureau (CFPB) today released a report detailing the complex costs and fees that many consumers with health savings accounts are forced to pay. There were approximately 36 million health savings accounts in 2023 – holding more than $116 billion. These accounts provide tax benefits to help offset the costs of high deductible health plans. However, these benefits are being offset by charges like monthly maintenance fees, paper statement fees, outbound transfer fees, and account closure fees. Today’s report is part of the CFPB’s continuing efforts to reduce the risks and costs brought by financial institutions as they increase their presence in the American healthcare system.

“Health savings accounts are promoted for the tax benefits that chip away at the price tag of health care,” said CFPB Director Rohit Chopra. “Many consumers do not realize the fees, switching costs, and low interest yields that will come with the accounts.”

A health savings account is a tax-advantaged account that generally comes with a high deductible health plan. Typically, a health savings account is in the form of a deposit account selected by an employer or a health insurance company. An employee makes tax-deductible contributions that can then be used for certain health care expenses. Unspent contributions can earn interest, and roll over each year. The individual and family contribution limits for 2024 are $4,150 and $8,300, respectively.

Health savings accounts today hold more than $116 billion, a 500 percent increase since 2013. Additionally, the number of accounts rose more than three times from 2013 to 2023, 11.8 million to 35 million, respectively. The significant growth in the accounts has coincided with the rising use of high deductible health plans.

Consumers have reported a range of concerns with health savings accounts. For some consumers, these accounts come with high costs. Employers often decide on the financial service provider that will manage employees’ health savings accounts. The factors that motivate employers can differ from those of employees. Providers design health savings accounts to compete for employers. The result is that health savings accounts can often present challenges and costs for consumers, such as surprise fees, lack of fund portability, and low-yield interest rates.

When a consumer ends up with a health savings account with high fees and inferior terms, it directly reduces the funds they can allocate to their health care needs. High deductible health plans have higher deductibles than other health plans, so many individuals with these plans, such as people with chronic illnesses, experience higher upfront out-of-pocket health care costs.

High costs and fees can quickly erode a consumer’s ability to pay medical bills. In the case of health savings accounts such fees and costs can also erode tax savings. Specifically, the CFPB’s report found:

Costly, complex, and captive junk fee structures: Many providers that offer health savings accounts charge various fees, including monthly maintenance fees and paper statement fees. Expensive exit fees, like outbound transfer fees and account closure fees, can hold consumers, who may not have selected their accounts, captive to their current providers. The fees are costly and typically unavoidable.
Low interest yields: Despite the recent increase in interest rates across the United States most providers offer consistently low interest rates. Typically, these rates are less than 1%, and, sometimes, even 0%. As a result, consumers could incur significantly more in fees than they earn in interest.
The CFPB has been working to reduce the financial consequences of medical debts as well as to ensure consumers are treated fairly by providers participating in the health care sphere. In September 2023, the CFPB initiated a rulemaking to remove medical bills from many credit reports. In July 2023, the CFPB, along with other federal agencies, launched an inquiry into costly credit cards and loans pushed on patients to pay for health care costs.

Read the CFPB’s report, Health Savings Account Issue Spotlight.

Read Statement of CFPB Director Rohit Chopra on Medical Financial Products.

Read consumer complaints about health savings accounts.

Consumers can submit complaints about financial products or services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372).

03/31/2024

The Dark World of Frauds, Scams and Other Nasties

Into the Shadows: Unraveling the Dark World of Fraud, Schemes, and Scams

Fraud and scams are like tricky puzzles designed to trick people out of their money or personal information. They come in many forms and can catch anyone off guard if they’re not careful. Let’s take a closer look at what they are and how they affect us.

When it comes to referring instances of fraud and scams, there are several specific government agencies that individuals and businesses can turn to for assistance. These agencies have different areas of focus and jurisdiction, so it’s essential to identify the type of fraud or scam involved and refer it to the appropriate authority. Included in the article are some key agencies.

https://dianedrain.com/the-dark-world-of-frauds-scams-and-other-nasties/

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03/28/2024

If Keeping Your Home is Important, Know Rules of Bankruptcy and Arizona Forclosure laws.
Facing bankruptcy can be a challenging and uncertain time. One of the most pressing questions is whether you can keep your home during and after bankruptcy. In this article, we will explore the factors that determine whether you can keep your home when filing for bankruptcy. We’ll also provide valuable insights based on legal principles and bankruptcy laws.

https://dianedrain.com/can-you-keep-your-home-in-bankruptcy/

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Filing for bankruptcy can be a difficult decision. Find out how to keep your home amid the legalities in this article on Chapter 7 & Chapter 13 bankruptcy.

03/28/2024

What is a Bad-Faith Bankruptcy?
This article will explain what a bad-faith dismissal or revocation of a bankruptcy discharge is. Why it matters. How to prevent bad faith allegations

https://dianedrain.com/what-is-a-bad-faith-bankruptcy/

03/27/2024

The Lowdown on Business Bankruptcy: What you Need to Know.
Bankruptcy is a complex process that can have significant implications for your business and personal finances. Before considering bankruptcy as an option for your struggling business, it’s crucial to understand the potential pitfalls in detail. Here’s a breakdown of some of the key factors to consider:

https://dianedrain.com/lowdown-on-business-bankruptcy-what-you-need-to-know/

03/08/2024

The Arizona Supreme Court decided those living in motorized homes (such as RVs) cannot protect their homes.

The Arizona Supreme Court’s decision In re Drummond, 23-0009 (Sup. Ct. Arizona, 3/7/24) regarding the ban of RV residents from the homestead law (ARS 33-1101) is indeed concerning, particularly for seniors and low-income individuals who rely on this protection from their creditors. This ruling essentially denies them the same rights as those living in more traditional homes.

The homestead law’s purpose is to provide a buffer for individuals facing financial hardships, ensuring that they can maintain their primary residence even when struggling with debt. By excluding RV residents from this safeguard, the court has created a disparity that will disproportionately affect vulnerable populations.

Given the rising popularity of RV living, especially among retirees and those seeking more affordable housing options, this decision could have far-reaching consequences. It’s essential for policymakers and advocates to address this issue and consider amending the law to provide equitable protection for all residents, regardless of the type of dwelling they inhabit.

In the meantime, RV residents in Arizona need to reach out to their representatives in the Arizona State Legislature and urge them to pass a new law to protect their homes and rights in the face of creditor actions.

Why Drummond makes no sense:
In Drummond the Arizona Supreme Court found that a motor home cannot be exempt as a homestead, but that a mobile home can be. Their decision turns upon the false interpretation of ARS 33-1101 that it “requires a permanent connection with the land..” Justice Timmer dissented from the majority finding that “… I agree with federal court decisions that “mobile home,” as used in § 33-1101(A), can reasonably be interpreted as either a trailer home that is not self-propelled or a motor home that is self-propelled when either is used as a permanent residence. See Warfield, 663 F.Supp.3d at 1081; Irwin, 293 B.R. at 30.”

In the picture above, there are three similar homes: a motor home, a 5th wheel and a mobile home. All are movable, all can be permanent residences, and all are or can be attached to utilities. So what is the difference? To quote Justice Timmer “In other words, whether or not a home has a motor, the homestead exemption fulfills its purpose by protecting the family’s interest in that home. See Warfield, 663 F.Supp.3d at 1082 (“[T]he fact that a debtor’s home has a motor makes it no less the debtor’s home.”).”

https://dianedrain.com/arizona-supreme-court-decides-those-living-in-rvs-cannot-protect-their-homes/

03/08/2024

How to Safeguard Yourself from Debt Relief Scams
In today’s consumer landscape, credit cards are the normal tools for managing finances and making purchases. However, having credit card debt can lead to financial stress and vulnerability to predatory schemes. Recognizing the importance of prudent financial management, the Federal Trade Commission (FTC) has issued a consumer alert highlighting strategies to avoid debt relief scams and use credit cards responsibly.

This article will address: 1) Understanding the Risks of Credit Card Debt, 2) Identifying Debt Relief Scams, 3) Take Control of Your Financial Future, 4) Tips to Safeguard Against Debt Relief Scams, 5)
Understand Your Rights, 6) Beware of Red Flags, 7) Seek Professional Advice, 8) Verify Credentials.

For more information on recognizing and avoiding debt relief scams, visit the Federal Trade Commission’s website at consumer.ftc.gov.

https://dianedrain.com/how-to-safeguard-from-debt-relief-scams/

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