New Mexico Bankruptcy Laws happens to be one of the areas of the law that is very predictable and affordable considering the benefits that are involved.
However, it takes a highly experienced and professional attorney to handle a bankruptcy law case properly.
Some people have pending loans as well debts that they are unable to pay off due to one reason or the other. This, sometimes, is a result of them going bankrupt.
For such people, there are certain laws that the different states in which they reside have laid down. These laws were designed to guide the proceedings of the cases of bankruptcy in these states.
Several people believe that paying off their debts is the right thing to do, which it is, however, there is a reason for the existence of the bankruptcy safety net.
Majority of the bankruptcies in the United States of America is caused by several reasons which range from failure of business enterprises to illnesses, job losses and other events not expected.
Another cause of bankruptcy is the profit that credit card companies make, which is done by increasing the interest rate on the cards of individuals who are, in the long run, unable to afford them.
For the state of New Mexico, it is expected that the individual file a petition as this will ensure that the proceedings of the court are proper in relation to the New Mexico Bankruptcy Laws in the State.
The petition the individual would file should be filed in the court of New Mexico.
For the case of bankruptcy, the individual that has ended up with the charge of being bankrupt would, first of all, have all the properties (real and personal) and assets belonging to him assessed.
It is after the assessment of the assets belonging to this individual that the court will subsequently determine which category the particular case belongs to.
- The first step that an individual in this situation would take would be to hire for himself or herself an attorney that is both reputable and professional. This is to ensure that no part of the complex process is bungled.
- Another important thing to note in this situation is that it is essential that proper paperwork is presented. Apart from the paperwork to be provided, a detailed plan concerning how the loan and/or debt would be repaid should also be made available.
- In the situation where you are scared of losing any of your property, it is possible for you to seek protection.
- Finally, if it so happens that you are convicted, the law of each state provides that you are free of all obligations accrued as a result of the conviction within a short period of time
There are essentially three chapters of New Mexico Bankruptcy Laws. They include:
- Chapter 7 Bankruptcy
- Chapter 11 Bankruptcy and
- Chapter 13 Bankruptcy
Chapter 7 Bankruptcy
Also known as Straight Bankruptcy.
This chapter involves relinquishing most of the nonexempt assets of the borrower. It involves either distributing the proceeds of selling the assets among the creditors or sharing the assets themselves.
Chapter 11 Bankruptcy
Also known as Business Reorganization Bankruptcy
This chapter involves attempting to restructure the business either through an informal process called consensual restructuring (also known as a work out between the business and the people or organizations it owes) or through a formal process that involves a court supervising a voluntary reorganization under this code.
Chapter 13 Bankruptcy
Also known as Wage Earners Bankruptcy.
This chapter provides that you provide a feasible plan that details how you will repay either all or a part of the debts you owe on an installment basis from your income.
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