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Bankruptcy in New Mexico

Who Can File Bankruptcy in New Mexico?

In order to file for bankruptcy in New Mexico, you must meet one of the following requirements:

-Reside in the state of New Mexico

-Own property in the state of New Mexico

-Operate a business in the state of New Mexico

In addition to fulfilling this requirement, you will also need to participate in an approved credit counseling program, and it must have been at least six years since the last time you filed bankruptcy.  You should be aware that in order to get the maximum property exemptions, you will need to have resided in the state for at least 40 months prior to filing for bankruptcy.

What Do I Need To Know Before Filing For Bankruptcy in New Mexico?

Chapter 7 and Chapter 13 bankruptcy hearings are governed by completely different rules.  While Chapter 7 bankruptcy will offer the widest range of benefits for most people, some people will benefit more from filing Chapter 13 bankruptcy.  In order to determine the best course of action in your case, it is best to consult with a bankruptcy attorney prior to filing a petition with the court.

What Type of Debts Can Be Discharged As Part of a Bankruptcy Proceeding in New Mexico?

The following are debts which CAN be discharged as part of a bankruptcy proceeding:

-credit card debts

-medical bills

-unsecured loans

-utility bills

-other unsecured debts

The following are debts which CAN NOT be discharged as part of a bankruptcy proceeding:

-mortgage

-car loan

-home equity loan

-some joint debts

-other secured debts

Will I lose my house and car if I file for bankruptcy in New Mexico?

In accordance with the property exemption laws in the State of New Mexico, certain assets are exempt from your bankruptcy proceedings.  These exempt assets must fall into a certain monetary value in order to remain exempt.  The property exemption laws in the State of New Mexico are as follows:

-Homestead exemption of up to $30,000 in equity

-Up to $4,000 in equity in one motor vehicle

-Personal property of up to $500

-Up to $1,500 in tools of your trade

-Up to $2,500 in jewelry and personal property

-Wild card exemption of up to $2,000 for those not using the homestead exemption

 

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