Even though the American economy is in a better state than it was a few years ago, many businesses and individuals in New Mexico and beyond are still struggling with debt. But, luckily, those who are overwhelmed with debt have the option to enter bankruptcy and get relief from their financial burdens.
There are a number of reasons why a person finds themselves in over their heads. Unemployment is one of the many reasons a person has trouble paying their debts. Medical bills resulting from a major illness or injury lead to almost half of personal bankruptcy filings.
A personal bankruptcy gives people the chance to stop calls from bills collectors along with reducing the amount they owe. A bankruptcy attorney can help a person decide whether Chapter 13 or Chapter 7 will work for them.
Under the terms of a Chapter 13 bankruptcy plan, the filer must have a regular income. This is a type of repayment plan that both the creditor and the debtor must approve. This requires that the indebted individual must make regular payments within a court approved time period before any or their liabilities are reduced. A New Mexico bankruptcy attorney will recommend this filing to people who are not seeking to have their debts discharged.
If you don’t have a source of income, your New Mexico bankruptcy lawyer may see Chapter 7 as your best option. Under this bankruptcy structure, your will be required to sell assets in order to pay creditors. Some property is exempt from liquidation. Once assets have been sold, the remaining debts can be discharged by a bankruptcy judge.
Regardless of the structure you chose, bankruptcy will give you the opportunity to shed debt and help you start over again.
