How to File for New Mexico Bankruptcy

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  • Bankruptcy is a tool for individuals in some degree of financial trouble to start over with the clean slate they've been looking for. If you've been planning on filing for bankruptcy in New Mexico, think of it as a simple way to get the fresh start you want. After all, these laws were designed to help, so there's no need to view them in a negative way. This page shows you How to File for New Mexico Bankruptcy.

  • Disclaimer

    The content in this page is not a substitute for professional financial advice. Please contact your financial adviser before using the information presented here.

  • Introduction

    Your New Mexico bankruptcy filing will take place in federal court since bankruptcy falls under the jurisdiction of federal law in every state across the USA. However, state law still has a role to play with respect to certain areas of the proceedings. For instance, in New Mexico you have the option of choosing state or federal guidelines when it comes to which assets you can keep and at what dollar value.

  • What is Chapter 7 Bankruptcy?

    Chapter 7 bankruptcy is a legal process designed to liberate an individual facing financial pressure from their unsecured debt obligations. However, Chapter 7 does not wipe out secured debt like car payments or your mortgage. It is also known also as straight bankruptcy or liquidation bankruptcy. Many people are apprehensive in regards to what they've read about chapter 7 filings due to the topic of asset liquidation, but forced sales can usually be avoided if you can simply pass a means test. Also, keep in mind that a Chapter 13 bankruptcy restructuring is still an available option if you decide that filing a Chapter 7 bankruptcy isn't a solution you're interested in.

  • Chapter 7 Exemptions for New Mexico

    Once you've determined that you're eligible to file a Chapter 7 Bankruptcy, it's quite important that you consult with a bankruptcy attorney so they can cover all of the exemptions you have a right to claim. New Mexico offers two different "exemptions schemes" and you're free to choose the one that better suits your needs and circumstances. Note that married couples may double the exemptions under the first federal scheme but not under the second scheme which is based on state law. Though your lawyer is the expert who should be guiding you in your decision making process, here are a just a few of the exemptions that are allowable under one scheme or the other in the state of New Mexico:http://research.lawyers.com/New-Mexico/Bankruptcy-in-New-Mexico.html

    1. Your motor vehicle to $3,225 - double for married couples
    2. Jewelry to $2,500
    3. Alimony, child support needed for support
    4. Lost earnings payments
    5. Life insurance proceeds
    6. 50% of wages exempt with respect to child support obligation; 40 times the federal minimum wage or 75% of disposable earnings whichever is greater
    7. Workmen's compensation
    8. Unemployment compensation
    9. Materials, tools, machinery, equipment or oil and gas supplies furnished for use in oil or gas well or in oil or gas pipeline

  • The Chapter 7 Income Test

    To pass the Chapter 7 Bankruptcy means test, you'll need to verify that your household income is lower than than the state median for New Mexico. This median varies depending on the size of your family and is determined by the Census Bureau. The following maximum incomes apply in cases filed after March 15, 2009http://research.lawyers.com/New-Mexico/Bankruptcy-in-New-Mexico.html:

    1. Single individual: $35,913
    2. Two person family: $48,708
    3. Three person family: $53,018
    4. Four person family: $56,009
    5. Five+ person family: $56,009 plus $6,900 for each extra individual over four

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