_ 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
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
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.