One of the most common questions about bankruptcy is whether you will lose assets. It is a valid concern, particularly since a Chapter 7 bankruptcy is commonly referred to as a liquidation bankruptcy. In some Chapter 7 bankruptcies, a court-appointed trustee may liquidate the debtor’s non-exempt assets in order to pay certain debts.
The truth, however, is that most people are able to keep their property during bankruptcy. The U.S. Bankruptcy Code allows people to claim certain New Mexico bankruptcy exemptions, which enable them to keep some, or in many cases all, of their property.
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You’ll often be able to keep any assets that have minimal sale value or no equity. Even if the item has value, the bankruptcy trustee has the final say in whether or not the item is sold. The trustee may decide the item will be difficult to sell or create unnecessary expense in the process of the sale. It’s important that you discuss your situation openly with your bankruptcy lawyer to ensure you receive the exemptions to which you are entitled.
Because federal and state laws may dictate which exemptions you are eligible to choose, it is crucial to discuss your options with an Albuquerque personal bankruptcy lawyer. Not all exemptions may apply to all individuals or all situations, and each state has its own laws governing how exemptions can be applied to protect your property.
Bankruptcy exemptions in New Mexico may include:
- Real Estate
- Personal property (including household goods, clothing, vehicles, etc.)
- Wages, pension, and public benefits
- Tools of your trade
Because you may be able to choose between state and federal exemptions depending on the circumstances of your bankruptcy petition, an experienced bankruptcy lawyer in Albuquerque, New Mexico can counsel you on how best to preserve your property.
Bankruptcy property exemptions are available for both Chapter 7 and Chapter 13 bankruptcies. To learn more about how you may be able to preserve your property and assets through bankruptcy, contact Albuquerque, NM Bankruptcy attorneys today for a free initial consultation.