Are you burdened with debts that you are unable able to pay off? Do the chances of your repaying the debts seem bleak? Are you contemplating filing for bankruptcy? (Click here for a FREE assessment of your case.)
Bankruptcy is a legal proceeding that is warranted when an individual or business is unable to repay debts. It gives the debtors a fresh financial start. It is important to have a bankruptcy attorney evaluate your financial state and make a list of debts and assets, before deciding to file for bankruptcy.
The two main chapters of bankruptcy laws, under which bankruptcy for individuals is filed, are Chapter 7 and Chapter 13.
Chapter 7
Chapter 7 is also known as ‘straight’ bankruptcy, wherein most of the debtor’s property and assets are liquidated and the creditors repaid. Exemptions may vary from state to state.
Almost all the debts are discharged through Chapter 7 bankruptcy, except child support, student loans, alimony, debts not listed in the bankruptcy petition and a few others.
An exemption limit is applied to the equity that the individual has on the property. The New Mexico bankruptcy exemptions include real estate up to $30,000, clothing, books and jewellery worth $2500, motor vehicle valued up to $4000 and tools of trade up to the value of $1500.
In New Mexico, you also have the option of using federal bankruptcy exemptions, instead of those set by the state.
Chapter 13
Chapter 13 of bankruptcy allows individuals with an income to file a plan to repay debts.
A list of assets and debts is worked out and your Albuquerque bankruptcy lawyer will help you make a repayment plan. Under Chapter 13, you would have up to five years to repay your debts.
A court appointed trustee will approve the repayment plan, after consulting with the creditors.
It is vital to state clearly the debts that have been repaid and those that haven’t been repaid, as it is important to ensure that no financial details are missed in the bankruptcy forms and papers.
Our sponsoring Albuquerque bankruptcy lawyers are well qualified and conversant in bankruptcy laws. They will help evaluate your financial situation, file a bankruptcy petition and list the assets that have to be filed in the court. Your Albuquerque bankruptcy lawyer will help you understand every aspect of the bankruptcy law that is applicable in your case and make the entire process as smooth sailing as possible. Our Albuquerque lawyers offer their services to individuals living in Carlsbad, Farmington, Clovis, Roswell, Hobbs, Las Cruces or any other city of New Mexico.
Free 24-hour Bankruptcy Information Line
Call 1-888-3NO-DEBT (1.888.366.3328)
