Chapter 13 Bankruptcy in New Mexico
Also known as "Reorganization Bankruptcy," Chapter 13 gives people the opportunity to repay debts, usually without the liquidation of assets. In many cases, this helps homeowners avoid foreclosure and keep their homes as long as they can continue to make payments. It can also be helpful in preventing repossessions, garnishment of wages, debt lawsuits, and can help pay off credit card debt.
How Chapter 13 Can Help You
Chapter 13 bankruptcy is designed to help people who have short-term financial troubles often spurred by the loss of a job, unexpected health problems, divorce, or other unplanned events. Whatever may be causing your financial setback, it can often be remedied with a little time and some breathing room. Chapter 13 provides that opportunity to help you get back on your feet.
How Chapter 13 Works
Like Chapter 7 bankruptcy, Chapter 13 bankruptcy requires a "means test" to determine your repayment amount, but unlike Chapter 7, it doesn't determine bankruptcy eligibility. The repayment amount is based upon the IRS-regulated-median standard for the area of New Mexico in which you live. The time frame for Chapter 13 is usually three to five years, depending on your situation, and it can be used to pay off and eventually eliminate both secured and unsecured debt. An experienced bankruptcy lawyer can help you through the difficult process.
If you're facing financial difficulties and think bankruptcy may be your best option, contact the New Mexico bankruptcy lawyers of Melwani Law for your free bankruptcy consultation. We have the experience and knowledge you need to help you get your life back on track.