Chapter 7 vs Chapter 13 Bankruptcy: Which is Right for You?

Can Bankruptcy Prevent Foreclosure in New Mexico?

Dealing with overwhelming debt can be incredibly stressful and daunting. If you're a New Mexico resident considering bankruptcy, you may find that Chapter 7 bankruptcy offers a viable solution to regain control of your finances. At The Law Office of Jason Cline, we are dedicated to helping you navigate this complex process and achieve a fresh start.

Creating a Feasible Repayment Plan in Chapter 13 Bankruptcy

Making the decision to file for bankruptcy is never an easy one, but sometimes it is necessary in order to get a fresh start financially. Chapter 7 bankruptcy can provide relief for individuals struggling with overwhelming debt, but how do you know when it's time to take that step? In this blog post, we will discuss some signs that indicate you may need to file for Chapter 7 bankruptcy in New Mexico.  One of the most common reasons people file for Chapter 7 bankruptcy is because they are unable to pay their bills on time. If you find yourself constantly falling behind on payments, receiving collection calls, or facing potential lawsuits from creditors, it may be time to consider bankruptcy as an option. Chapter 7 can help eliminate unsecured debts such as credit card balances and medical bills, giving you a chance to start fresh without the burden of overwhelming debt. Another sign that you may need to file for Chapter 7 bankruptcy is if you are considering using retirement funds or other assets to pay off your debts. While it can be tempting to dip into savings or sell valuable assets in order to satisfy creditors, doing so can have long-term consequences on your financial stability. By filing for Chapter 7 bankruptcy, you may be able to protect certain assets while still getting rid of your debts. If you are facing foreclosure on your home or repossession of your vehicle due to missed payments, filing for Chapter 7 bankruptcy may be able to help. When you file for bankruptcy, an automatic stay goes into effect which stops all collection actions against you, including foreclosure and repossession. This can give you the breathing room you need to figure out a plan moving forward and potentially save your home or car from being taken away. Additionally, if you are struggling with mounting medical bills due to an unexpected illness or injury, filing for Chapter 7 bankruptcy may be a way out of financial hardship. Medical debt is considered unsecured debt and can typically be discharged through bankruptcy. By eliminating these debts through Chapter 7, you can focus on recovering your health without the added stress of dealing with insurmountable medical bills. Finally, if your income has decreased significantly due to job loss or other circumstances and you are unable to meet your financial obligations, filing for Chapter 7 bankruptcy may provide the relief you need. The means test used in determining eligibility for Chapter 7 takes into account your income level compared to the median income in New Mexico. If your income falls below a certain threshold, you may qualify for Chapter 7 and be able to eliminate your debts through the process. Deciding whether or not to file for Chapter 7 bankruptcy is a big decision that should not be taken lightly. If any of the signs mentioned in this blog post resonate with your current financial situation, it may be time to consult with a qualified bankruptcy attorney in New Mexico who can assess your individual circumstances and help guide you through the process. Remember that seeking professional advice early on can help ensure that you make informed decisions about your financial future and take steps towards achieving a fresh start free from overwhelming debt.

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.