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16 Feb, 2024
Dealing with financial problems can be very overwhelming, especially when you don't know what your options are. If you're a resident of New Mexico and considering filing for bankruptcy, you might be wondering how often you can file for Chapter 13 bankruptcy. In this blog post, we'll explore the frequency limits of filing for Chapter 13 bankruptcy in New Mexico, whether or not you can file more than once, and if it's possible to file for Chapter 13 after having filed for Chapter 7 bankruptcy.  Chapter 13 bankruptcy is a legal process that allows individuals who are struggling with debt to reorganize their finances and pay off their debts over time. In New Mexico, there is no limit on how many times you can file for Chapter 13 bankruptcy. However, there are specific guidelines on how often you can receive a discharge of your debts under Chapter 13. If you have previously filed for Chapter 7 bankruptcy and received a discharge, you must wait at least four years from the date of your previous filing before being eligible to file again under Chapter 13. This waiting period is necessary because both types of bankruptcies have different requirements and objectives. Filing for Chapter 13 more than once is allowed in New Mexico as long as certain conditions are met. If your previous case was dismissed without prejudice (meaning that it wasn't closed due to fraud or other misconduct), then you may be able to file again immediately after dismissal. However, if your case was dismissed with prejudice (meaning that it was closed due to fraud or other misconduct), then you may need to wait six months before filing again. It's important to note that filing repeatedly for bankruptcy could negatively impact your credit score and make it difficult to obtain credit in the future. Therefore, it's essential to weigh all of your options carefully before deciding whether or not to file for bankruptcy. If you have filed for Chapter 7 bankruptcy in the past, you may still be eligible to file for Chapter 13 bankruptcy. However, there are specific guidelines that must be followed. In general, you must wait at least four years from the date of your previous filing before filing under Chapter 13. Additionally, if you received a discharge in your previous case, you may need to wait six years before filing again under Chapter 13. Filing for bankruptcy can provide relief from financial stress, but it's essential to understand the rules and regulations surrounding the process. In New Mexico, there is no limit on how many times you can file for Chapter 13 bankruptcy. However, there are specific requirements on how often you can receive a discharge of your debts and guidelines on when you can file again after having filed for Chapter 7 bankruptcy. If you're considering filing for bankruptcy in New Mexico, it's crucial to consult with an experienced attorney who can guide you through the process and help determine the best course of action for your unique situation.
24 Jan, 2024
Chapter 7 vs Chapter 13 Bankruptcy: Which is Right for You?
15 Dec, 2023
If you are considering filing for Chapter 7 bankruptcy in New Mexico, it is important to understand the Means Test. This test determines whether or not you are legally eligible for Chapter 7 bankruptcy. While this may sound overwhelming, it is important to understand the specifics of the Means Test and how it is administered. In this blog post, we will break down the Means Test and help you determine if you are eligible for Chapter 7 bankruptcy in New Mexico. What is the Means Test? The Means Test is a test that evaluates your financial circumstances to determine your eligibility for Chapter 7 bankruptcy. It is designed to ensure that only people who truly cannot pay their debts are allowed to file for Chapter 7 bankruptcy. The Means Test takes into account your income, expenses, and the size of your household to calculate your disposable income. If your disposable income is below a certain threshold, you are likely eligible to file for Chapter 7 bankruptcy. What does the Means Test evaluate? The Means Test evaluates your income and expenses to determine your disposable income. Your income is calculated by taking an average of your monthly income from the past six months. If your monthly income is below the median income for your state and household size, you are automatically eligible to file for Chapter 7 bankruptcy. If your income is above the median income, the test then takes into account your expenses. Some expenses, such as rent or mortgage payments and utility bills, are based on actual costs. Other expenses, such as food and clothing, are determined by national standards. The Means Test then subtracts your allowed expenses from your income to determine your disposable income. What happens if you fail the Means Test? If you fail the Means Test, it does not necessarily mean that you cannot file for bankruptcy. You may still be eligible to file for Chapter 13 bankruptcy. Chapter 13 bankruptcy requires you to pay your creditors over a period of three to five years, rather than having your debts discharged. This option may be beneficial for those who have a steady income but are struggling to keep up with their debt payments. The Means Test can seem daunting, but it is an important tool in determining whether or not you are eligible for Chapter 7 bankruptcy. If you are struggling with overwhelming debt and are considering bankruptcy as an option, it is important to speak with an experienced bankruptcy attorney. They can help guide you through the process and determine if bankruptcy is the right solution for your unique circumstances. Remember, bankruptcy is not the end of the road. It is an opportunity to start fresh and take control of your financial future. 
16 Nov, 2023
Filing for bankruptcy can provide you with a fresh financial start, but it comes with its own set of challenges. If you filed for Chapter 13 bankruptcy, you might have some questions related to your tax debt. This blog post is for New Mexico residents who need to understand the effect of Chapter 13 bankruptcy on their taxes and whether they need to pay taxes during the process.  Chapter 13 Bankruptcy and Tax Debts: What You Need to Know Chapter 13 bankruptcy is a repayment plan in which the debtor agrees to repay a portion of their debt over three to five years. During this time, the debtor is protected from collection activities like wage garnishment, foreclosure, and lawsuits. However, the debtor must pay their tax debts just like any other debt, but they can do so at a reduced rate. Effect of Chapter 13 Bankruptcy on Your Taxes When you file for Chapter 13 bankruptcy, your tax debts are treated as priority debt. It means that they are given a higher priority than other unsecured debts, like credit card debt. Therefore, you have to pay them back in full during the repayment plan. However, the interest and penalties on overdue taxes can be reduced or eliminated in some cases, making it easier for you to repay your debt. Do I Have to Pay Taxes If I Filed for Chapter 13 Bankruptcy? Yes, you have to pay your tax debts even if you filed for Chapter 13 bankruptcy. In fact, failing to pay your taxes during the repayment plan can put your bankruptcy case at risk. The IRS can file a motion to dismiss your case if you fail to pay your taxes, and the bankruptcy court can grant the request. Therefore, it's essential to include your tax debts in your bankruptcy plan and make timely payments. Tax Returns and Chapter 13 Bankruptcy If you owe back taxes, your tax refund can be affected by your Chapter 13 bankruptcy plan. The bankruptcy trustee can take the tax refunds to pay your creditors, including your tax debts. Therefore, you need to be aware of this when you file your taxes and ensure that your withholding matches your actual tax liability. Additionally, it's crucial to inform your bankruptcy attorney of any significant changes in your income or tax liability. Chapter 13 bankruptcy can be an effective way to manage your debts and get a fresh start. However, it's essential to understand the effect of Chapter 13 bankruptcy on your tax debts. Remember that tax debts are priority debt in Chapter 13 bankruptcy, meaning you need to pay them in full during the repayment plan. Also, failing to pay your taxes during the process can put your bankruptcy case at risk. If you have any questions regarding your tax debts and Chapter 13 bankruptcy, don't hesitate to contact a bankruptcy attorney for guidance.
30 Oct, 2023
Filing for bankruptcy is never an easy decision to make. However, sometimes it is the only option left for those struggling with overwhelming debt. Chapter 13 bankruptcy is a restructuring plan that allows individuals with regular income to reorganize their debts and pay them off over a three to five-year period. However, to successfully complete a Chapter 13 bankruptcy case, it is essential to have a solid budget and financial management plan in place. In this blog post, we will discuss the importance of budgeting and financial management when filing for Chapter 13 bankruptcy and provide tips on how to prepare for it. Create a Budget Creating a budget is one of the fundamental steps in financial management when filing for Chapter 13 bankruptcy. This will help you get a clear idea of your financial situation and identify areas where you can cut back on expenses. You will need to provide a detailed list of your monthly income and expenses to the bankruptcy court and your trustee, who will review your plan and determine the amount of your repayment plan. Build an Emergency Fund Having an emergency fund is crucial when going through a Chapter 13 bankruptcy. An emergency fund can cover unexpected expenses such as medical bills, car repairs, and home repairs, which could otherwise derail your repayment plan. We advise building an emergency fund of at least six months’ worth of living expenses. Avoid new debt Once you have declared bankruptcy, it is essential to avoid new debts. Adding new liabilities will only complicate your financial situation and make it harder for you to complete your repayment plan. Instead, focus on building your savings and maintaining your current lifestyle within your budget restrictions. Track your Spending Keeping track of your spending will help you stay on track with your budget and prevent overspending. We recommend using a budgeting app or spreadsheet to track your expenses throughout your Chapter 13 bankruptcy plan. By keeping track of your spending, you can make adjustments to your budget as needed and ensure you remain on track with your repayment plan. Chapter 13 bankruptcy may seem like a daunting process, but with proper financial management and budgeting, it is possible to come out stronger on the other side. By creating a budget, building an emergency fund, avoiding new debt, and tracking your spending, you can successfully navigate the Chapter 13 bankruptcy process. Our team at The Law Office of Jason Cline is here to help guide you through the legal aspects of bankruptcy and provide financial advice to help you get back on your feet. Contact us today to schedule your consultation. 
By Jason Cline 29 Sep, 2023
Are you struggling under a mountain of debt and constantly dealing with the stress of creditor harassment and collection efforts? If you're a resident of New Mexico, filing for Chapter 7 bankruptcy may be a solution for you. Chapter 7 bankruptcy can help stop creditor harassment, collection efforts, and even discharge many of your debts. This blog post will explore how filing for Chapter 7 bankruptcy can help stop creditor harassment and put an end to collection efforts, giving you the fresh start you need. 1. What is Chapter 7 Bankruptcy? Chapter 7 bankruptcy is a legal process that allows individuals who are unable to pay their debts to get a fresh start. Under Chapter 7, a bankruptcy trustee collects and sells your non-exempt assets to repay your creditors, and most unsecured debts are discharged at the end of the process. This means that you are no longer legally obligated to pay these debts, and creditors are not allowed to take action against you to collect on them. 2. How Does Chapter 7 Bankruptcy Stop Creditor Harassment? One of the most significant benefits of Chapter 7 bankruptcy is the automatic stay. The automatic stay is a legal order that goes into effect as soon as you file for bankruptcy. It immediately stops most creditors and collection agencies from contacting you or taking any action to collect on your debts. This means that they can no longer call you, send you collection letters, garnish your wages, or file lawsuits against you. 3. Will Creditors and Collectors Continue to Call Me After I File for Bankruptcy? While the automatic stay is a powerful tool for stopping creditor harassment and collection efforts, there are some exceptions. Some types of debts, such as child support, alimony, and taxes, are not discharged in Chapter 7 bankruptcy and may still be collected by the creditor. Creditors can also file a motion with the court to lift the automatic stay in certain situations, although they must have a valid reason for doing so. 4. How Can I Protect Myself from Creditor Harassment After Filing for Bankruptcy? If you are still receiving calls or letters from creditors after filing for bankruptcy, it's important to take action to protect yourself. You can notify them that you have filed for bankruptcy and provide them with your case number and the name and address of your bankruptcy attorney. If they continue to harass you after being informed of the bankruptcy, you may be able to take legal action against them. 5. What Happens After My Chapter 7 Bankruptcy Case is Complete? After your Chapter 7 bankruptcy case is complete, most of your debts will be discharged, and you'll be free from the burden of excessive debt. However, it's important to note that bankruptcy can have a long-term impact on your credit score, and some creditors may be hesitant to lend to you in the future. It's crucial to work with an experienced bankruptcy attorney who can help you understand the long-term implications of filing for bankruptcy and help you develop a plan to rebuild your credit. If you're struggling with debt and constant creditor harassment, filing for Chapter 7 bankruptcy may be the solution you need. Chapter 7 bankruptcy can stop creditor harassment and collection efforts, giving you the fresh start you need to take control of your finances. To ensure that your bankruptcy case goes smoothly and that you're able to achieve the best possible outcome, be sure to work with an experienced bankruptcy attorney who can guide you through the process.
By Jason Cline 31 Aug, 2023
Dealing with overwhelming debts can be a daunting experience, but there is hope. If you are a resident of New Mexico and cannot manage your debts, you can seek relief by filing for Chapter 13 bankruptcy. Chapter 13 bankruptcy allows you to create a payment plan and pay off your debts over a period of three to five years. However, before you file, it is crucial to understand the process, qualifications, and benefits of Chapter 13 bankruptcy. In this blog post, we discuss everything that you need to know about Chapter 13 bankruptcy in New Mexico.  1. Requirements for filing Chapter 13 Bankruptcy in New Mexico To be eligible for Chapter 13 bankruptcy in New Mexico, you must have a regular income and debts that fall within certain limits. Debt limits for secured debts are $1,257,850, while debt limits for unsecured debts are $419,275. During your filing, you will also have to undergo credit counseling from an approved agency. 2. What Happens During a Chapter 13 Bankruptcy Filing After filing for Chapter 13 bankruptcy, you will go through a confirmation process, where your creditors review your proposed payment plan to determine its feasibility. Typically, you will have to make payments over three to five years, and any unpaid debts will be discharged at the end of the payment period. Throughout the payment period, you may be required to make regular payments to a bankruptcy trustee, who will then distribute the funds to your creditors. 3. Benefits of Filing for Chapter 13 Bankruptcy in New Mexico One of the main advantages of Chapter 13 bankruptcy in New Mexico is that it allows you to keep your property, including your house, car, and other assets. Additionally, filing for Chapter 13 bankruptcy may also help you stop foreclosure, wage garnishment, and collection calls from your creditors. Moreover, Chapter 13 bankruptcy allows you to repay your debts in a manageable way and solve your financial woes without ruining your credit history. 4. Hiring an Experienced Attorney to Help You Through the Process Navigating Chapter 13 bankruptcy in New Mexico can be complicated and time-consuming. Therefore, it is recommended that you hire an experienced bankruptcy attorney who understands the nuances of the law and can guide you through the process. Your attorney will help you with filing the necessary paperwork, crafting a repayment plan that suits your needs, and representing you during creditor meetings. 5. Conclusion Filing for Chapter 13 bankruptcy can be a lifeline for New Mexico residents struggling with overwhelming debts. Not only does it offer a fresh start for debtors, but it also allows them to keep their assets and avoid harassment from creditors. If you are a New Mexico resident considering filing for Chapter 13 bankruptcy, it’s crucial to understand the requirements and find an experienced attorney to guide you through the process. With the right legal counsel, you can find a way to regain your financial stability and move towards a debt-free future. If you are experiencing financial challenges, it's essential to explore all options. Chapter 13 bankruptcy may be an excellent solution, especially if you reside in New Mexico. Through a structured payment plan, Chapter 13 bankruptcy can help you repay your debts and get a fresh start. However, before you file for bankruptcy, it's crucial to understand the process, requirements, and benefits, and to seek the guidance of an experienced bankruptcy attorney. At the law office of [insert law office name], we understand the complexities of Chapter 13 bankruptcy and can help you navigate the process. Contact us today to schedule a consultation with one of our knowledgeable attorneys.
01 Jun, 2023
Filing for bankruptcy is always a difficult choice to make, but it’s often the only right choice to get debt relief. If you are married, you have another difficult choice to make: to file for bankruptcy individually or jointly. Deciding whether you should file with or without your spouse can add to the stress you may feel when exploring your debt relief options. If you are considering filing for bankruptcy but want to know how your bankruptcy filing can affect your spouse, you might want to seek legal counsel. As a bankruptcy attorney at The Law Office of Jason Cline, I can review your situation and explain the implications of filing separately vs. jointly. From my office in Albuquerque, New Mexico , I provide legal counsel to clients throughout the state of New Mexico, including Los Lunas, Rio Rancho, and Santa Fe. Separate Property vs. Community Property in New Mexico New Mexico has community property laws, which means any earnings, assets, and debts acquired before the marriage are considered separate property, while everything acquired during the marriage is considered community property and is subject to equal distribution (50/50) in a divorce. The only exceptions to the community property rule are inheritances and gifts received from someone other than your spouse during the marriage. Filing for Bankruptcy Separately vs. Jointly: Pros and Cons When one spouse files for bankruptcy, it does not necessarily mean the other spouse has to do the same. Thus, you can decide between filing for bankruptcy separately or jointly. When deciding whether to file for bankruptcy separately or jointly, it is important to carefully consider the pros and cons of each option. The pros of filing for bankruptcy separately include: Protect the non-filing spouse’s credit . If a married couple files for bankruptcy jointly, both spouses will see a drop in their credit scores, even if only one spouse has significant debt. Filing separately can help protect the non-filing spouse’s credit. Separate property protection . If one spouse owns a significant amount of property or assets in their name only, filing separately can help protect that property from being included in bankruptcy proceedings. Reduce household expenses . If one spouse has significant debt and the other has little or no debt, filing separately can allow the couple to continue paying essential household expenses without being adversely affected by a bankruptcy filing. The cons of filing for bankruptcy separately include: Joint debts . If a married couple has joint debts, filing separately may not be an option. Each spouse will be responsible for their own debts, but joint debts will still need to be addressed in some way. The filing spouse’s income . When a married couple files separately, the income of the filing spouse is the only income considered for the bankruptcy calculation. This can make it more difficult to qualify for Chapter 7 bankruptcy, which requires a lower income. Potential loss of joint property . If a couple files separately, there is a risk that joint property may be included in the bankruptcy proceedings. Additionally, one spouse’s decision to file separately could lead to the other spouse being solely responsible for joint debts. The pros of filing for bankruptcy jointly include: Cost-efficient . Filing for bankruptcy jointly is often more cost-efficient than filing individually as there is only one set of fees and legal costs. Dispose of all debts at once . Filing jointly allows both spouses to address all debts at the same time and create a clean slate for their financial future. Maximize exemptions . When filing jointly, the couple can often maximize exemptions, which can protect more of their property and assets from being included in bankruptcy proceedings. The cons of filing for bankruptcy jointly include: Potential eligibility issues . To qualify for Chapter 7 bankruptcy jointly, both spouses must meet certain eligibility requirements, which may not be possible if both spouses have significant income or high levels of assets. Both spouses’ credit scores will take a hit . Filing jointly will result in a significant drop in both spouses’ credit scores, potentially making it more difficult to obtain credit in the future. Potential loss of joint property . Filing jointly puts the joint property at risk of being included in the bankruptcy proceedings. There are a number of factors to consider when it comes to deciding between a separate or joint filing. Consider consulting an attorney for a personalized case evaluation. Don’t Wait Any Longer. Call Now. If you are overwhelmed by debt, you need to find a way to eliminate that debt. One option may be filing for bankruptcy. If you are married, you might want to speak with an attorney to determine whether you should file with or without your spouse. Reach out to my office, The Law Office of Jason Cline , to request a free consultation.
12 Apr, 2023
Even if you have a good health insurance plan, a serious injury or illness can send you spiraling into medical debt. Deductibles, co-pays, and expenses not covered by your plan can add up to significant sums. Even if you have always kept a handle on your debt, unexpected medical debt can overwhelm you. At the Law Office of Jason Cline, I have seen my clients struggle under the weight of excessive debt caused by medical expenses. Not only do they worry about their health, but they worry about debt that looks insurmountable. Is bankruptcy an option? If you are straining under the weight of medical debt in Albuquerque, Sante Fe, Rio Rancho, Los Lunas, and throughout New Mexico, let me help you figure out what you can do to get financial relief. As a bankruptcy attorney , my goal is to help you find hope. Will Bankruptcy Discharge Medical Debt? If you are asking, “Will filing for bankruptcy eliminate my medical debt?”, the answer is, “It depends.” A Chapter 7 bankruptcy will discharge medical debt. A Chapter 13 bankruptcy will reduce and restructure it. However, medical debt can’t be addressed exclusively in a bankruptcy filing. Instead, all debt must be reported and dealt with as part of the process. What that means is that outstanding debt on your credit cards and other unsecured debt is also wiped out in a Chapter 7 bankruptcy or restructured in Chapter 13; so are secured debts, such as a mortgage or vehicle loan. If you file Chapter 7, for example, you will have your medical and other unsecured debt discharged, but you may lose your home, car, or other assets in the process. It is wise to work with an experienced bankruptcy attorney to help you explore all your options for addressing your medical debt. That way, you can choose the best path for yourself. Does Medical Debt Affect My Credit Score? Medical debt, like any other debt, does impact your credit score, but only if your unpaid debt is sold to a collections agency and is in excess of $500. As of July 2022, medical debt in collections will not appear on your credit report, and therefore, does not affect your credit score, for one year. Prior to that, the debt would appear within six months, so you now have more time to settle debt. Moreover, debt that went to collections and was subsequently paid off used to remain on your credit report for seven years. Now, medical debt is removed from your credit report once that debt is satisfied. That means you can begin rebuilding your credit score as soon as the debt is paid. If your medical debt is discharged or reduced and restructured in bankruptcy, it will affect your credit score. Chapter 7 bankruptcy remains on your report for up to 10 years after filing and Chapter 13 for seven. Although the medical debt per se isn’t lowering your credit score, a bankruptcy will. What Bankruptcy Chapters Deal With Medical Debt? Chapter 7 bankruptcy discharges all debt included in the filing. You cannot exclude some debt and include specific debt, such as medical debt. All debts are addressed. The court-appointed bankruptcy trustee is responsible for inventorying and liquidating any assets you own to settle and pay creditors before the remaining debt is discharged. You do wipe the proverbial slate clean, but you may sacrifice your home and other assets in the process. To be eligible to file for Chapter 7, your income must be below the median annual income in New Mexico. For example, this is currently $50,177 for a household of one and $64,080 for a household of two. If your annual median income is higher, you must pass a “means test.” The means test allows you to deduct certain expenses, such as mortgage payments, childcare expenses, and retirement contributions, to see whether you then meet the income requirement. If you still fail to meet eligibility for Chapter 7, you can file for Chapter 13. Chapter 13 bankruptcy is designed for people who earn sufficient income to have disposable income they can use to make payments on restructured debt. Although some debts may be reduced in the process, they are not discharged. Instead, you agree to repay debt on a restructured payment plan you can manage with your disposable income. Three to five years is typically the length of the payment plan. Because you are repaying your debt in Chapter 13, you can preserve your assets, such as your home. Of course, you must have enough income after payment of your monthly bills to make payments on your debt. Moreover, making repayments rather than defaulting on your debt will help you immediately begin rebuilding your credit score. What Are the Pros and Cons of Medical Bankruptcy? One of the obvious benefits of getting rid of medical debt in bankruptcy is that you relieve the burden of that debt. If you have racked up major medical bills, you probably don’t need the stress of oppressive debt. The bankruptcy chapter you file may make elimination of medical debt via this route more or less advantageous. If you file Chapter 13 rather than Chapter 7, you are repaying the debt, which may preserve relationships with your healthcare providers. A provider may not agree to see you if you simply eliminate what you owe them in Chapter 7 bankruptcy. However, if you are making payments on that debt in Chapter 13, they may be willing to continue that relationship. Filing for bankruptcy will address all debts you owe, which can give you a true financial fresh start. However, as I have said previously, bankruptcy will remain on your credit report for several years after filing, so you will need to work diligently to rebuild your credit score. That said, if bankruptcy is your best option for righting your financial hardship, your credit score is probably in peril anyway. What Questions Should I Ask Myself Before Filing for Medical Bankruptcy? Bankruptcy isn’t the best solution for everyone. As a bankruptcy attorney, my job is to give you the information you need to figure that out. However, there are some key questions you should ask yourself if you are considering bankruptcy: Should I file for Chapter 7 or Chapter 13? The answer will depend on whether you pass the means test and whether you want to preserve the assets you own that are subject to liquidation in Chapter 7. Can I afford bankruptcy? There are filing fees you must pay to the court and attorney’s fees. Even more important, if you pursue a Chapter 13 bankruptcy, you will need to tighten your belt to repay your debt according to the plan approved by the court. With either chapter, you will need to refrain from acquiring additional debt for a significant period of time. Will bankruptcy help? There are certain debts you cannot discharge in bankruptcy, such as back child support and alimony, some back taxes, and student loan debt. After what can be addressed is, can you still pay the unaddressed debt you owe? Can I live with the consequences? Bankruptcy affects your credit score for years, which means you will likely be unable to be approved for any significant credit during that time. Moreover, you will be charged extremely high-interest rates on any credit you may be able to procure. If you want to buy a house or business in the near future, you will need to think twice about how you deal with your debt. Rely on Dependable Legal Advice If reading this gave you more questions than answers, I did my job. Bankruptcy should not be taken lightly. It is a lifesaving opportunity for some but can have poor consequences for others. I help my clients figure out what is best for them. Every situation is different, and I approach every client as if they are my only one. If crushing medical debt has you considering using bankruptcy as a tool to relieve the stress, call the Law Office of Jason Cline in Albuquerque, New Mexico, to schedule a consultation. This first step is a step toward figuring out what to do with your debt, so don’t wait. Call now.
29 Mar, 2023
It’s the kind of story that you would never dream could happen to you: shadowy characters show up at your house at night when you’re not there, cut the bolt on your locked gate, then tow away your car. The car they took was being purchased or leased, and you are behind on payments, so if this was all they took it would be somewhat understandable, but that’s not all this repo company was guilty of. While they were only after the leased car, they couldn’t get to it without first moving your other free-and-clear car out of the way and leaving it in the middle of the street! Here, it was side-swiped and then towed away, leaving you without two cars and with hefty towing and repair bills. This may sound like a nightmare scenario, but car repossession incidents like this happen more often than you know. If this happens to you , you need to take action to protect yourself. Contact me at the Law Office of Jason Cline for help getting a car returned or compensation for repossession damage to property. I can help those in Albuquerque, New Mexico, as well as Rio Rancho, Santa Fe, Los Lunas, or anywhere throughout the state of New Mexico. Required by Law for Repossessions To start with, it’s completely legal for a lender to repossess a vehicle due to missed car payments. And while it’s true that most lenders will pursue other measures first to collect on past-due payments, they are within their rights to take back a car that you’re not able to pay for. If you’re concerned about this happening, you should double-check your contract to see whether there’s a provision that stipulates a grace period for missed payments. However, just because they can do this doesn’t mean there aren’t rules and limits on how they can do this. First, repossession agents must inform the police of their intent to repossess the vehicle. It’s worth noting that they aren’t required to notify you of the repossession. Also, when conducting the repossession, agents are not permitted to “breach the peace” in taking a vehicle (and cutting through a locked gate certainly violates this rule). Agents are also not allowed to damage personal property during the repo (like pulling out your other car and leaving it in the middle of the road to be damaged by oncoming traffic). Lastly, your lender must send you full and proper notice immediately after the repossession and again after any auction or sale of the vehicle. Recourse Just because you haven’t stayed current on your car payments doesn’t mean you throw all your rights out the window. In addition to trying to get the repossessed vehicle back, you can also pursue any damages caused by the repossession. If your goal is to get the car back, the fastest way to do this is simply to pay off the loan, but this only works if you’re able to pay it off in full in addition to any towing or storage charges. However, if your car was repossessed due to missing payments in the first place, this may not be a viable option. In that case, you may be able to have your loan reinstated which will only require you to bring your loan current. If you don’t want the car back, you’ll still want to clear your credit report so this doesn’t show up on it. This is best done with the help of a lawyer, preferably a bankruptcy attorney who is experienced in these cases. Lastly, using the opening scenario as an example, you may wish to seek compensation for damages that the repo company inflicted. Don’t Face Repossession Alone If you’re in the Albuquerque, New Mexico, region and are concerned that your car will be repossessed, or it’s already happened, contact me at the Law Office of Jason Cline to discuss your options.
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