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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.
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. Please visit our median income state chart in the Chapter 7 section of our site.
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.
The two most common consumer bankruptcies are Chapter 7 and Chapter 13, our sponsoring lawyers handle these types exclusively so you can be sure you are getting accurate legal advice when you file bankruptcy. Our Bankruptcy attorneys will fight to protect your rights and your property, fight the aggressive and annoying creditors for you, and they can help you keep your home, vehicles and other property.
A lawyer will be committed to getting you debt relief and providing you with valuable information, services and advice to get you a better financial future. There are many convenient locations to make filing bankruptcy or learning about the alternatives we offer, even easier.Get Help Now