Declaring New Mexico Bankruptcy
The purpose of the New Mexico bankruptcy laws is to allow a person a fresh financial start by wiping out their debts and providing them with protection from their creditors so the person can rebuild their financial stability.
New Mexico allows individuals seeking debt relief to file either chapter 7 or chapter 13. Which chapter you file will depend on several factors such as your income, debts, and goals with filing bankruptcy.
Whether you file chapter 7 or chapter 13 you will need the assistance of a qualified bankruptcy lawyer. Schedule a free consultation meeting with a local bankruptcy lawyer by filling out our online evaluation form.
NM chapter 7 bankruptcy is for individuals with little to no income or assets and those debtors seeking the fast possible debt relief. When filing chapter 7 debtors must turn over any of their assets that are not protected by the bankruptcy exemptions for liquidation so the proceeds can be distributed to creditors. This is why chapter 7 is known as a liquidation bankruptcy. Chapter 7 is the most common chapter of the Bankruptcy Code.
Chapter 13 in New Mexico is commonly referred to as a reorganization bankruptcy. When filing chapter 13 a debtor will present a plan to reorganize their debts into a more manageable payment plan to their creditors.