Chapter 7 bankruptcy is known as liquidation bankruptcy.A
trustee appointed by the bankruptcy court gathers all of your
non-exempt assets, sells them, and uses that money to pay your
creditors.Once this process is complete, you receive a discharge, and any remaining debt to those creditors is wiped out.
Some other important facts you should know about Chapter 7 bankruptcy include:
You get an automatic stay upon filing:
Once you file Chapter 7 bankruptcy, the court issues an automatic stay
to prevent creditors from making any more collections attempts.They
may no longer call you at home or at work, they may not send
threatening letters, and any lawsuits filed against you in an attempt to
collect on your debt are put on hold.
Not all debts qualify for discharge:
Most important to many people considering Chapter 7 bankruptcy, it will
not discharge student loans, which are all but impossible to discharge.Nor
will Chapter 7 bankruptcy free you from tax debt, domestic support
obligations, criminal fines, or civil judgments against you for death or
injury resulting from your own intoxication.
You do not have to lose your house or your car:
You may be able to reaffirm your mortgage or car payments and continue
making those payments through the bankruptcy process and beyond.Consult
with an Albuquerque personal bankruptcy lawyer to determine which
assets you will be able to protect despite a Chapter 7 bankruptcy.
How do you know if Chapter 7 bankruptcy is right for you?Consult
with Dan. A. Ribble, LLC, a Chapter 7 bankruptcy law firm in
Albuquerque, about whether bankruptcy presents the best path out of your
current financial troubles. Dan has almost four decades of experience
advising clients about bankruptcy and can guide you towards a healthier
Do I qualify for Chapter 7?
Two main factors determine whether you qualify for Chapter 7 bankruptcy: recent bankruptcy filings and means testing.
No one who received a Chapter 7 discharge or completed a Chapter 13
repayment plan in the past eight years can file for Chapter 7
Designed to force debtors who can pay some of their debt into Chapter 13
bankruptcy, means testing sorts debtors based on monthly income.If your monthly income falls below the median for your state, you can file under Chapter 7.If
your monthly income is above the state average, means testing
calculates your presumed net monthly income based on allowable expenses,
not your actual monthly net.If your net monthly income is below $100, you may file under Chapter 7.Between
$100 and $167.67, you and your Chapter 7 attorney in Albuquerque will
have to counter a “presumption of abuse” in order to use Chapter 7.And if your monthly net is above $167.67, you may only file Chapter 13.
Chapter 7 law firm in Albuquerque
If you think you may want to file bankruptcy in New Mexico, speak first with attorney Dan A. Ribble.His
goal is to help debtors resolve their debts quickly while protecting as
many of their assets as possible and defending their credit record.Contact him today to begin discussing your options and planning your future.