Chapter 7 Bankruptcy Attorney in Albuquerque, New Mexico

Every year, more than 2,000 people file for Chapter 7 bankruptcy in New Mexico. Often referred to as the “liquidation bankruptcy,” Chapter 7 provides a debt relief option for those who otherwise would likely never escape their crushing debt.

If you are swimming deeply in debt, making credit card payments late, missing payments, or only paying monthly minimums, the stress can overwhelm you and take a toll on your personal relationships. Chapter 7 may be the only way you can find relief. You certainly are not alone.

At The Law Office of Jason Cline, I am dedicated to providing experienced legal services and comprehensive representation to individuals and business owners for all bankruptcy-related matters. I'm available to review your case, discuss your unique situation, and offer you the detailed legal counsel and advocacy you need to navigate the complexities of your unique situation. The Law Office of Jason Cline proudly serves clients in Albuquerque, New Mexico, as well as Rio Rancho, Santa Fe, Los Lunas, and other areas throughout the state.

What Is Chapter 7 Bankruptcy?

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.

How Do You Qualify for Chapter 7 Bankruptcy?

Not everyone can qualify for Chapter 7. It is an option for those who pass an income “means test” which indicates you will not be able to repay your debts even over a long period of time. If your income exceeds the median amount, you may still qualify for Chapter 7 if your disposable income is low, meaning that after your expenses, you have little income to pay off debt.

When Is Chapter 7 a Good Option?

Chapter 7 is a good debt relief option when:

• You don't have income or any valuable asset a creditor can go after.

• It can eliminate a considerable part of your debt.

• You have property that you wish to keep and would like to list as non-exempt.

How Can an Attorney Help?

You do not have to figure out whether Chapter 7 bankruptcy is right for you on your own. Ultimately, the decision is yours, but an experienced bankruptcy attorney has the knowledge to examine your financial situation fully, walk you through all available options for debt relief, and help you navigate the bankruptcy process. It is vital that you weigh the pros and cons of liquidating your assets and paying off sufficient debt. An attorney like me will help you.