General Information

Bankruptcy New Mexico

The Automatic Stay

The moment you file for bankruptcy, the automatic stay goes into place.  The automatic stay prevents all collection actions against debts you have.  This includes garnishments, foreclosure and repossession actions.

Garnishment

Upon the filing of a bankruptcy a garnishment has to stop, whether it is a wage garnishment or bank account.  If the bankruptcy case is filed quickly enough after a bank account garnishment then the money may need to be returned to you.  Also, in certain situations, monies garnished from wages may need to be returned to you as well.

Foreclosure

A foreclosure action is stopped with the filing of a bankruptcy.  If you want to keep your house, a chapter 13 plan will allow you to catch up the arrears and bring the loan current.  During this time, the bank cannot reinitiate the foreclosure process.

Repossession

The filing of a bankruptcy will stop a repossession action.  In fact, even if a vehicle has been repossessed already, so long as it hasn't already been sold at auction, it has to be returned to you after filing.  A chapter 13 plan can help either catch the vehicle payment up or pay for the vehicle in full.  During the life of the chapter 13 plan, the lender cannot attempt to repossess the vehicle.

Income Taxes Owed

A large amount of income tax liabilities can be discharged in bankruptcy.  There are very specific guidelines which determine what income tax liabilities cannot be discharged.  However, even if they cannot be discharged, they can be repaid through a chapter 13 plan.

Student Loans

As a general rule, student loans are nondischargeable in bankruptcy.  This includes all types of student loans, both government and private.