How to File for Bankruptcy in New Mexico
It is important to follow federal guidelines and requirements when filing for bankruptcy in New Mexico. In addition, it can be helpful to discover the local rules that must be followed when filing for bankruptcy in the state of New Mexico. Learning about the bankruptcy options that are available is one of the first steps that must be taken. Chapter 7 bankruptcy is the most common form of bankruptcy. Chapter 7 bankruptcy offers a way for debts to be discharged by the court. Chapter 13 bankruptcy is another popular option. This option allows for debts to be paid back over time using a structured payment plan. There are also several other options available to debtors with specific circumstances. For instance, Chapter 12 bankruptcy is a special option for fishermen and farmers. Chapter 11 bankruptcy is an option that is open to some people with business debts or large debts.
Anyone who is seriously considering the option of filing for bankruptcy should seek the guidance of a bankruptcy attorney in the state of New Mexico. The highly detailed and complicated nature of the bankruptcy process can often be overwhelming for people without a legal background. Any errors that are made during the filing process could result in extra fees or delays. In addition, anyone filing for bankruptcy must provide accurate and current information to the court at all times.
Preparing to File for Bankruptcy in New Mexico
There are some steps that must be taken long before the bankruptcy process formally begins for a debtor. It is necessary for anyone considering bankruptcy to complete a credit counseling course during the six months leading up to filing a petition with the court. This course must be taken through an agency that is approved in the state of New Mexico. The list of approved course providers can be accessed here. It is also necessary to complete a debtor education course during the bankruptcy process. The list of approved providers for this required course can be accessed here.
Key Steps in the Bankruptcy Process
A person must file a formal bankruptcy petition with the court to begin the bankruptcy process. This act will set off something called an automatic stay. The automatic stay instantly prevents all creditors from attempting to contact a debtor or collect any unpaid debts. A means test is another very important aspect of the bankruptcy process. All debtors are required to submit information regarding assets, liabilities, income and a variety of other financial details as part of a means test. The results of a means test will determine which form of bankruptcy a debtor is actually eligible to file for. All debtors must also fulfill the requirement of attending a meeting of creditors during the bankruptcy process. This meeting is typically very brief. However, it is important because creditors may use the meeting as an opportunity to try to prove that a debtor possesses nonexempt assets that can be forfeited as part of the bankruptcy process. In addition, creditors can potentially object to aspects of a payment plan for a Chapter 13 case.
A Look at New Mexico's Bankruptcy Court
The United States Bankruptcy Court for the District of New Mexico is located in Albuquerque. The filing fee for Chapter 7 bankruptcy cases is $335. The filing fee for Chapter 13 bankruptcy cases is $310. A full list of all of the fees a person can expect to encounter when filing for bankruptcy of any form in the state of New Mexico can be seen here. The forms required when filing for bankruptcy in New Mexico can be accessed here.