Chapter 7 Bankruptcy Attorney In Albuquerque, NM

In a Chapter 7 bankruptcy, a trustee liquidates your nonexempt assets and distributes the proceeds among your creditors in full and final settlement of your debts. Nonexempt assets include possessions of value, such as jewelry or artwork, collections of value such as stamps or baseball cards, musical instruments (unless needed for your employment), and designer clothing and accessories. If you have equity in a second residence other than your primary home or in a vehicle, those assets may also be liquidated in Chapter 7 bankruptcy.

New Mexico law can help you protect your home, vehicle, equipment you need for work, some personal property, pensions and retirement savings, unemployment and workers’ compensation benefits, life insurance, and a percentage of your disposable income. The state’s “wildcard exemption” also allows you to protect a certain amount of cash, personal property, and real property.

Chapter 7 bankruptcy will discharge most unsecured debt, such as credit cards, personal loans, medical bills, and overdue utility payments. It may also discharge secured debt such as a mortgage or car loan; however, you must be willing to give up your home or auto if you want to discharge the debt.

Chapter 7 will not discharge debt such as child support or alimony arrearages or recent unpaid taxes. Discharge of student loan debt requires a different type of lawsuit.