Dan A. Ribble- LLC 2818310
Dan A. Ribble- LLC 2818310

_Which Type of Bankruptcy Is Right for Me?

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Choosing between Chapter 7 liquidation bankruptcy and Chapter 13 reorganization bankruptcy is no easy matter, and in New Mexico, it is something best discussed with skilled and dedicated bankruptcy lawyers in Albuquerque.  Dan A. Ribble, LLC can help you select the right form of bankruptcy to best protect your interests and financial future.

Why choose Chapter 7?

Chapter 7 liquidation makes the most sense for people who have a lot of unsecured debt—that is, debt without physical collateral to secure it, like credit card debt, some other personal loans, and medical bills—and simply not enough income to make significant monthly payments and still get by.  In a Chapter 7 liquidation, a bankruptcy trustee collects all of your non-exempt assets, sells them, and uses the proceeds to pay off your creditors.

In New Mexico, some exempt assets include:

  • $30,000 worth of equity in your home, where equity is understood to mean the current value of your home, minus your outstanding mortgage, the cost of sale, and outstanding liens
  • Furniture
  • Clothing
  • Books
  • Medical equipment
  • Up to $2,500 worth of jewelry
  • Up to $4,000 equity in a car
  • At least 75 percent of disposable income from wages or 40 times the federal minimum wage, whichever is greater
  • Most life, health, accident, and unemployment insurance benefits
This is not a complete list: to fully understand the effect a Chapter 7 bankruptcy filing in New Mexico will have on you, work with an Albuquerque Chapter 7 attorney.

Why choose Chapter 13?

Chapter 13 reorganization bankruptcy makes the most sense for people who have regular income and would rather sacrifice most or all of their disposable income than risk losing their home and other important assets.  In a Chapter 13 bankruptcy, you do not sell your assets to pay off your debts, but rather work with the bankruptcy court to set up a three or five year repayment period. During this period, interest stops accruing on your debt and you use most of your disposable income to make set payments to your creditors.

However, Chapter 13 bankruptcy will not lead to the discharge of all debts.  For example, to keep your house, you must reaffirm any mortgage debt, catch up with arrears during the Chapter 13 repayment period, and continue making mortgage payments, if necessary, once the repayment period is over.  Neither Chapter 7 nor Chapter 13 bankruptcy will clear student loan, alimony, or child support obligations, so if those are your biggest financial problems, you will want to work with personal bankruptcy law firm in Albuquerque to find a way to avoid bankruptcy and still manage those debts and payments.

Choose a seasoned Chapter 7 and Chapter 13 bankruptcy lawyer in Albuquerque



Dan A. Ribble brings almost 40 years of experience helping debtors through the bankruptcy process to your case.  He advises you about which bankruptcy chapter makes the most sense for you and about whether bankruptcy itself is the best choice for someone in your circumstances.  Contact him today to arrange a free initial consultation.

Practice Areas

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Our Office

__3500 Comanche NE
Building B
Albuquerque, NM 87107

Phone:  505.884.0770
Fax:       505.881.7003

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