Chapter 7 Bankruptcy Attorney Helps You To Get A Fresh Start

 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:

• Domestic obligations like child support, alimony, and other debts owed under a marriage settlement agreement
• Certain fines, penalties, and restitution resulting from criminal activity
• Certain taxes, including fraudulent income taxes, property taxes that became due within the previous year, and business taxes.
• Court costs
• Debts from a DUI charge
• Condo or other homeowner's association fees charged after you file bankruptcy
• Retirement plan loans
• Debts not discharged in a previous bankruptcy
• Debts you didn’t list on your bankruptcy

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:

1. Hire Attorney: Sign a representation Agreement with McCook Law Firm, LLC. 
2. Credit Counseling: Complete a mandatory pre-filing bankruptcy counseling through a  nonprofit credit counseling agency. 
3. Fill out paperwork: McCook Law firm will help you fill out the various forms required to file. You will need to gather information on your whole financial picture, including debts, income, property and monthly expenses.
4. Submit bankruptcy petition: Your bankruptcy petition is filed with the court which triggers the automatic stay protection preventing creditor collections efforts, including harassing letters and phone calls.
5. Meeting of creditors (341 Meeting): Approximately 30 days after filing the petition, the trustee will host a meeting in which creditors can discuss any issues they have with you. Typically, creditors do not appear at these meetings and your attorney will be present with you at this meeting. 
6. Debtor education course: Before the Chapter 7 bankruptcy is complete, you must complete a “debtor education course” from a nonprofit credit counseling agency.
7. Discharge: Approximately 60 days after the Meeting of Creditors, you obtain you bankruptcy discharge. 

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 Toll Free: (888) 397-0510 or contact McCook Law Firm, LLC online to schedule your free bankruptcy consultation via phone or at one of our office locations.