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Bankruptcy Attorneys in New Mexico

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What can a bankruptcy attorney do for me?
This site answers your questions regarding bankruptcy in New Mexico. We provide information and resources to help you determine if bankruptcy is the best choice for you. Whether Chapter 7, Chapter 13 or bankruptcy alternative, a New Mexico Attorney near you can walk you through the process every step of the way.

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If you are facing home foreclosure, high credit card debt, unexpected medical bills, harassing creditor calls or repossession, filing bankruptcy may be an option for you or your family. Filing Bankruptcy in New Mexico can be complicated and it is important to talk to a New Mexico Bankruptcy Attorney who is familiar with state and federal bankruptcy laws prior to filing bankruptcy. A New Mexico Bankruptcy Lawyer can answer all your questions, determine if you are eligible for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy and examine your assets and liabilities.

Filing bankruptcy is a big financial decision and should not be made with out understanding the long term negative consequences. It may become more difficult to get future personal loans and may lower your credit score. For many individuals bankruptcy is their last chance at a fresh financial start, in 2008 alone, over one million people filed bankruptcy. If you need help, contact a New Mexico Bankruptcy Attorney today.

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Chapter 7 Bankruptcy in New Mexico

New Mexico Bankrutpcy Attorney Why should I file Chapter 7 in New Mexico?

Chapter 7 Bankruptcy is a "liquidation" of your personal assets to pay your debt. Chapter 7 Bankruptcy is the most popular, quickest and least expensive type of bankruptcy. Chapter 7 Bankruptcy is available to individuals, corporations, married couples and partnerships. Under Chapter 7 Bankruptcy, a trustee is appointed by the bankruptcy court and this trustee is responsible for selling your non-exempt personal assets to pay your creditors.

Beginning in 2005, the bankruptcy laws were updated to include a means test to determine if an individual could file Chapter 7 Bankruptcy. The bankruptcy laws were updated to make it more difficult to file Chapter 7 Bankruptcy and force more people to repay a portion of their debt under Chapter 13 Bankruptcy.

If your income is below the median income of other New Mexico Families of the same size, in most cases you can file for Chapter 7 Bankruptcy, but if your median income in the last six months is greater than other families, additional testing is done. The additional testing will analyze your mortgage, car expenses, taxes owed, child support payments and school expenses up to $1650 annually. If after these expenses are deducted from your income, you can pay at least $6,000 or $100 per month to your creditors for the next five years, you will not be able to file Chapter 7 Bankruptcy and instead may have to file Chapter 13 Bankruptcy.

The median income data is provided by the United States Trustee Program and is adjusted by the Census Bureau. In the State of New Mexico, after March 15, 2009, the median income level for a single wage earner in the state of New Mexico was $35,913. For a family of two it was $48,708 and for a family of three it was $53,018. For a family of four it was $56,009.

Bankruptcy laws are generally the same for each state and are updated and formulated at the federal level. If you are considering filing bankruptcy in New Mexico, not only will you have to pass the means test to file Chapter 7 Bankruptcy, but you will also have to complete certain financial management classes, and a credit counseling class. Chapter 7 Bankruptcy will take about four to six months to complete and can be a relatively easy way to immediately discharge most of your personal unsecured debt.

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Chapter 13 Bankruptcy in New Mexico

Is Filing Chapter 13 Bankruptcy right for me?

If you do not qualify for Chapter 7 Bankruptcy, you may be eligible to file Chapter 13 Bankruptcy. Chapter 13 Bankruptcy will not automatically discharge your debt, but will instead require you to pay all or a percentage of your unsecured debt back to your creditors under a three to five year bankruptcy payment schedule. If at the end of the repayment schedule, you have paid all of debt obligations your debts will be discharged.

Most bankruptcy laws are constructed at the federal level. An area of bankruptcy law which may vary by state is the allowable exemptions. Exemptions are outlined at the federal level, but some states have chosen to "opt out" of the federal exemptions and instead have constructed their own list of state exemptions. In some states you can choose between the federal or state exemptions and in certain states you will not have a choice. In New Mexico, you may choose either the federal exemption or the New Mexico state exemptions.

Prior to filing personal bankruptcy in New Mexico, it is important to talk to a New Mexico Bankruptcy Attorney who can outline what exemptions you can use.

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Debts Not Discharged in New Mexico Bankruptcy

Filing Chapter 7 Bankruptcy or Chapter 13 Bankruptcy in New Mexico, will not discharge all of your personal debt. It is important to talk to a New Mexico Bankruptcy Attorney who can help you determine what debts can not be discharged. Non dischargeable debt is outlined under federal bankruptcy codes and includes the following debts:

Federal, state and local taxes. May be subject to specific time rules.
Spousal Support/Alimony
Child Support Payments
Most Student Loans
Mortgage Liens
Certain types of purchases for luxury items within 90 days of filing
Secure Debt
Penalties and fines by government agencies
Fraud committed in a fiduciary role including larceny and embezzlement
Punitive damages assessed for "willful and malicious acts"
Debts not outlined on the schedule and forms filed with the Bankruptcy Court
Drunk Driving fines
Certain cash advances or purchases for luxury items with in a certain time frame.

A non-dischargeable debt will not be discharged by filing bankruptcy and creditors will still have the legal right to collect these debts until they are paid.

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