Bankruptcy exemptions are a critical part of the bankruptcy code. They provide a way for debtors to maintain some or all of their property so that they truly are able to begin again after the discharge of their debts.
When an individual files for bankruptcy, his or her debts are either repaid over a period of three to five years through an approved payment plan, or they are discharged depending on the type of bankruptcy filed. Some of the debtor’s assets may be sold, or liquidated, in order to pay his or her creditors. Not everything will be lost; bankruptcy exemptions protect a certain portion of the individual’s property.
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If you are considering bankruptcy, exemptions may be able to protect some or all of your assets. In New Mexico, you have the option of using either state or federal exemptions, depending on your situation. At Melwani Law, we offer legal advice and support to guide you through the entire bankruptcy process from the filing of your petition through the discharge of your debts.
Regardless of whether you are filing for Chapter 7 or Chapter 13 bankruptcy, you may be entitled to exemptions that will help protect your assets.
Exemptions that may be available to those filing for bankruptcy include:
- A portion of the equity in your home. New Mexico state law provides for a $60,000 exemption for the equity in your home.
- Personal property, including household goods, hobby equipment, jewelry, and other miscellaneous items.
- Cars or other vehicles
- Wages, pensions, or public benefits
Bankruptcy law is extremely complex, and the advice of a knowledgeable Albuquerque, NM bankruptcy lawyer can help you determine how you can best benefit from exemptions.
If you are considering filing for bankruptcy and would like to learn more about how bankruptcy exemptions can preserve your property and contribute to your financial stability after bankruptcy, contact Melwani Law today for a free initial consultation. One of our bankruptcy lawyers will be happy to discuss your options with you and help you learn more about how you can get your financial life back on track.