Navigating the complexities of bankruptcy can be overwhelming, but our law firm is here to guide you through every step of the process. In New Mexico, individuals and businesses have several bankruptcy options to consider, each with its own set of benefits and requirements. Understanding these options is crucial to making an informed decision about your financial future.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” is designed for individuals and businesses that cannot repay their debts. This option allows for the discharge of most unsecured debts, such as credit card debt and medical bills. In exchange, the debtor’s non-exempt assets are sold to repay creditors. Chapter 7 is typically a quicker process, often completed within a few months.
Eligibility: To qualify for Chapter 7, you must pass the means test, which compares your income to the median income in New Mexico. If your income is below the median, you are eligible to file for Chapter 7.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy, or “reorganization bankruptcy,” is suitable for individuals with a regular income who can repay their debts over time. This option allows you to keep your property while creating a repayment plan to pay off your debts over three to five years. Chapter 13 is often chosen by those who want to avoid foreclosure on their homes.
Eligibility: To file for Chapter 13, you must have a regular income and your secured and unsecured debts must be within certain limits. As of 2024, the limits are $1,257,850 for secured debts and $419,275 for unsecured debts.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is primarily used by businesses seeking to reorganize their debts while continuing operations. This option allows businesses to restructure their debts and create a plan to repay creditors over time. Chapter 11 can be complex and costly, but it provides businesses with the opportunity to stay afloat and eventually return to profitability.
Eligibility: Any business, whether a corporation, partnership, or sole proprietorship, can file for Chapter 11. Individuals with substantial debts and assets may also consider Chapter 11.
How Our Law Firm Can Help
Filing for bankruptcy is a significant decision that requires careful consideration and expert guidance. Our experienced bankruptcy attorneys are here to help you understand your options and choose the best path forward. We will work closely with you to:
- Evaluate Your Financial Situation: We will assess your financial circumstances to determine which bankruptcy option is most suitable for you.
- Prepare and File Your Petition: Our team will handle all the necessary paperwork and ensure that your bankruptcy petition is filed correctly and on time.
- Represent You in Court: We will represent you in all bankruptcy proceedings, providing you with the support and advocacy you need.
- Develop a Repayment Plan: If you choose Chapter 13 or Chapter 11, we will help you create a feasible repayment plan that meets your needs and satisfies your creditors.
At our law firm, we understand the stress and uncertainty that come with financial difficulties. We are committed to providing compassionate and knowledgeable legal assistance to help you achieve a fresh start. Contact us today to schedule a consultation and take the first step toward financial freedom.
Let us help you navigate the path to a brighter financial future.