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.