Personal Bankruptcy
Bankruptcy For Individual Consumers
At Bankruptcy NM, LLC, we can assist clients with both Chapter 7 and Chapter 13 bankruptcy.
Simply put, Chapter 7 bankruptcy is a streamlined form of bankruptcy relief that discharges, or eliminates, most forms of debt in a short period of time, while Chapter 13 bankruptcy involves a repayment plan over the course of three to five years.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is known as a “liquidation” bankruptcy. All of your assets go into a bankruptcy estate; however, you can claim exemptions to protect certain assets. For example, a “homestead exemption” allows the individual to keep their primary residence up to a certain dollar amount. In addition, individuals can protect amounts in a vehicle, jewelry, tools of their trade, retirement accounts, etc. Any nonexempt assets could be liquidated and those funds would be used to pay off creditors; however, most individuals are able to protect all of their assets. The goal of a Chapter 7 bankruptcy for an individual is to enable you to make a fresh start.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a type of “reorganization” that allows you to pay all or a portion of your debts over a period of three to five years using your "disposable" income. You then receive a discharge of debts that are not fully paid at the end of the plan period. When an individual files for bankruptcy under this chapter, all debt collection attempts stop, including foreclosure proceedings. Additionally, there is the possibility of reducing interest rates on secured payments such as high-interest vehicle loans.
Schedule a Free Consultation Today
To learn your options and which chapter of bankruptcy might be right for your situation, schedule a free, one-hour consultation by clicking here to give us some information about your situation.
Bankruptcy NM, LLC, is located in Albuquerque, New Mexico, but we represent debtors and creditors throughout the state of New Mexico. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
