Chapter 7 is an option for individuals and small businesses to discharge virtually all outstanding debt.
Sometimes situations beyond your control can profoundly impact your earning potential and lead to overwhelming debt. If you find yourself unable to pay your bills, you may want to consider filing for bankruptcy.
The most common reasons for consumer bankruptcy are: garnishments, foreclosure, unemployment, large medical expenses, seriously over-extended credit, marital problems and other large unexpected expenses.
Designed to give debtors a fresh start, Chapter 7 bankruptcy gives you and your spouse relief from debts through liquidation of your assets. With extensive experience in this area, McCook Law Firm can help you file for Chapter 7 quickly and efficiently.
Once you have filed for bankruptcy, creditors must immediately stop collections efforts, including wage garnishment, harassing letters and phone calls.
MEANS TEST FOR QUALIFYING DEBTORS
To qualify for Chapter 7 bankruptcy relief, you must satisfy the court’s means test, which calculates your income and expenses compared to the median income in New Mexico. If you are not eligible for Chapter 7 bankruptcy, Chapter 13 may be available. McCook Law Firm, LLC can help you determine whether you are eligible for Chapter 7 bankruptcy and if it is your best solution for dealing with your debts.
LIQUIDATION OF ASSETS AND QUICK DISCHARGE OF SOME, BUT NOT ALL, DEBTS
Liquidation means selling assets to satisfy as much of your debt as possible before the court orders a discharge for the rest of your qualifying debt. However, the law includes many exemptions that allow you to protect your assets, such as your home, car, clothing, and tools of your trade.
It is very unlikely that you will lose any of your assets in a chapter 7 bankruptcy. McCook Law Firm can help you determine which of your assets are eligible for exemption so you get the maximum protection under the law. Upon conclusion of the bankruptcy proceedings, the court grants a discharge of your remaining debt, with some notable exceptions.
Debts That Can't Be Discharged in Chapter 7 Bankruptcy
Section 523(a) of the Bankruptcy Code describes the types of debt that may not be discharged. Debts that can’t be discharged in Chapter 7 bankruptcy include:
It is very difficult, if not impossible, to discharge student loans in bankruptcy.
Creditors can ask that certain debts not be discharged including debts incurred via fraud, any luxuries you charged in the months preceding your bankruptcy, or debts arising from willful and malicious acts like arson, kidnapping, vandalism, libel, or slander.
Chapter 7 bankruptcy process:
Contact an experienced bankruptcy attorney in New Mexico.
Don’t continue to live under a cloud of unmanageable debt. Chapter 7 bankruptcy can quickly discharge your qualifying debt and give you a fresh start. Call (505) 600-2550 or contact McCook Law Firm, LLC online to schedule your free bankruptcy consultation at my Albuquerque, New Mexico office.
We can help you with: