Making it Easy to File for Bankruptcy Protection in New Mexico
Having debt can mean big struggles for anyone. Bills can pile up and become too much to handle. Luckily there are bankruptcy lawyers in New Mexico that can help you get through it. Bankruptcy was initially created as a method to help creditors but over the years has become a way to help those who are unable to pay off an outstanding debt. However, filing for bankruptcy is not as simple as one might think. There are several chapters that can be filed, so it is important to seek the help of a top bankruptcy attorney to ensure you make the right choice.
We are here to help you find and choose an attorney that is ideal for your needs and who will make your case a top priority. Our featured legal professionals handle anything from paperwork to creditor phone calls to ensure that every aspect of the process is taken care of for you. They are always available should you have any questions and pride in helping clients overcome their debt.
You will be on your way to living debt free with just one phone call to one of our lawyers. But first, it’s important you learn a little bit about New Mexico bankruptcy laws so you can gain an understanding of the process and what to expect.
New Mexico Bankruptcy Facts
Debt can pile up quickly and for several different reasons. Sometimes debt is the result of losing a job while other times it accrues because of medical bills. However, regardless of how much you owe or why, bankruptcy can be your ticket out of debt. Bankruptcy is a federal process in which a debtor (consumer or business) declares they are unable to pay back what they owe to creditors. There are several chapters of the U.S. Bankruptcy Code that can be filed, each catering to a different kind of debtor and different financial situations. However, they can all reduce financial burdens and offer debt relief to those in need. As long as your debts are unsecured (meaning they are not backed by assets), filing for bankruptcy can help you reduce or possibly even completely eliminate your financial obligations with creditors.
Choosing the Best Chapter for Your Financial Situation
While there are several bankruptcy chapters that can be filed in New Mexico, Chapter 7 and Chapter 13 are the ones that are most commonly sought. Chapter 7 is called liquidation bankruptcy because a debtor’s assets are liquidated in exchange for the discharge of their unsecured debt. Chapter 13 places the debtor on a court-appointed payment plan to pay off creditors over a period of time. Each of these chapters leads to very different outcomes, so having a top bankruptcy lawyer on your side is key to ensuring the best outcome for your case.
Below are a few facts about these two chapters to give you a better understanding of each and see if you may qualify.
Chapter 7 Bankruptcy
- - Can be filed by both individuals and businesses
- - Income must be below the state median to qualify
- - Once approved, assets will be liquefied to eliminate debt
- - Some assets are exempt from liquidation, such as the debtor’s home and pension plans
- - Most – if not all – unsecured debt is discharged
- - Proceedings resolve quickly – some in as little as three months
- - There is no minimum amount of debt required to file
Chapter 13 Bankruptcy
- - Can only be filed by individuals
- - Debt may be reduced but never completely eliminated
- - No assets are liquidated
- - Debtor pays back creditors over a period of three to five years
- - Ideal option for debtors facing foreclosure
- - Easier to qualify for than Chapter 7
Sick of struggling with unmanageable debt? Act now and contact one of our featured New Mexico bankruptcy lawyers to obtain debt relief as quickly as possible.