Most people see bankruptcy as a good way to relieve their debt burden and get rid of those problems that come with it. However, if you want to relieve your debt with chapter 13 bankruptcy, it’s best to have it at the back of your mind that chapter filing chapter 13 bankruptcy is an important decision that has to be done with care, or by hiring an expert to file it for you. Since the decision commits you to a debt repayment plan that could last up to 5 years, you should think about the decision very well before delving into it. Check out this article to see how many Chapter 7 and Chapter 13 bankruptcy filings there were during a 12-month period ending June 30th, 2019.
In this article we’ll discuss the following;
- Chapter 13 vs. Chapter 7 Bankruptcy
- New Mexico Chapter 13 Means Test
- Bankruptcy Calculator New Mexico
- New Mexico Bankruptcy Exemptions
- Where New Mexico Bankruptcy Courts are Located
- The New Mexico Bankruptcy trustees
- Alternatives to Filing Chapter 13 and Chapter 7 bankruptcy
Chapter 7 vs Chapter 13 Bankruptcy in New Mexico
Chapter 7 bankruptcy is also called the “liquidation bankruptcy” or “Straight Bankruptcy” as there is no repayment plan. However, your assets could be sold to pay off your debt is you have equity assets that are above the accepted level. The bankruptcy assets protect some equity in the asset.
The chapter 13 bankruptcy in New Mexico is a plan that reschedules the payment period of your debt. During the process of repaying your debt, you will be monitored by the bankruptcy court, and they will make sure that you don’t incur debt, except the court approves it. Also, you cannot sell any of your assets.
Bankruptcy means test in New Mexico
Chapter 13 means test in New Mexico measure your earnings with other families that reside in New Mexico. If it is found that your income is lesser than what another family earns, you stand a high chance of qualifying for a chapter 7 bankruptcy plan. Chapter 13 has also been referred as the ‘wage earners bankruptcy‘ which allow the payment plan to range from 36 to 60 months.
However, if your income is above the average income in New Mexico, you may have to file a Chapter 13 bankruptcy case. There are instances where your income can be higher than the average income New Mexico resident, yet you’re qualified to apply for a Chapter 7 bankruptcy. One condition that can make this happen is if you deduct some living expenses from your gross income to find your disposable income, and your disposable income is lower than a specific amount, then you’re qualified for Chapter 7 bankruptcy. The median family income cases filed on or after May 1, 2020 are located on this table.
The figure for calculating means test changes with time; as such, you must ensure that you use the most recent figure while calculating. The current data for calculating New Mexico income for bankruptcy cases will be used on all cases that are filed after the 1st of May, 2020. The median income in New Mexico depends on the number of people that live in your household:
|# of People||Annual Income|
New Mexico Bankruptcy Calculator
Lots of factors determine how a chapter 13 payment plan is calculated in New Mexico. Some of those factors include recent financial transactions, disposable income, debt, and assets. A chapter 13 bankruptcy plan can help cover tax debt, alimony payments, child support, and reduce mortgage and car payments.
The process of calculating a chapter 13 bankruptcy is quite complicated. However, you can use ascend to make things easier. We have a Chapter 13 calculator that would estimate your Chapter 13 payment plan in a short time. However, it’s best if you use our precise calculator if you want to get a more precise estimate of chapter 13 payments.
New Mexico Bankruptcy Exemptions
The New Mexico bankruptcy exemption allows debtors to keep their property when filing for bankruptcy. This exemption also protects your net equity from your debtors and the court. Some states give debtors an option to select between state exemptions and federal exemptions.
When filing for chapter 13 exemptions, you have the option of choosing between two types of New Mexico bankruptcy exemptions. It is mandatory to select one of the two when filing your chapter 13 bankruptcy. You need to carefully examine both sets of bankruptcy plan to know the one that best suits you.
You can find New Mexico bankruptcy exemptions when you check New Mexico’s Code of Civil Procedure. New Mexico regularly adjusts its bankruptcy exemptions, you can check with a bankruptcy attorney or a bankruptcy court. If you want to apply for chapter 13 bankruptcy plan, you should have it in mind that your net equity in the property can affect your payment plan. Thus, you should claim the best exemptions that can help you reduce your payment.
Location of New Mexico Bankruptcy Court
There is one New Mexico’s bankruptcy district, and the courthouse is located at Pete V. Domenici U.S. Courthouse, 333 Lomas Blvd. NW, Suite 360, Albuquerque, New Mexico 87102.
New Mexico Bankruptcy Trustees
Who are the New Mexico Chapter 13 Trustees?
New Mexico has two trustees for Chapter 13 bankruptcy. Each trustee has a jurisdiction that is divided according to the division and the district of the case. You can find a list of New Mexico’s chapter 13 trustees when you check the U.S. Trustee website.
When you apply for a Chapter 13 bankruptcy, a trustee will be assigned to your case. The trustee has the duty of accepting your creditor’s payments and paying your creditors based on the agreement on the Chapter 13 payment plan.
|Tiffany M. Cornejo||(505) 243-1355|
Who are the New Mexico Chapter 7 Trustees?
New Mexico has four trustees for Chapter 7 bankruptcy. The same rules apply for the jurisdiction that the Chapter 13 has. You can find a list of New Mexico’s chapter 7 trustees on the same U.S Trustee website as the one for the Chapter 13 trustees.
|Clarke C. Coll||(575) 623-2288|
|Yvette J. Gonzales||(505) 771-0700|
|Edward A. Mazel||(505) 433-3097|
|Philip J. Montoya||(505) 244-1152|
Alternatives to Filing a Chapter 13 and Chapter 7 Bankruptcy
There are numerous alternatives to chapter 13 bankruptcy in New Mexico. If you want to go for a chapter 7 bankruptcy, you must meet up with the requirement for a bankruptcy discharge. There are also debt settlement options and debt consolidation loans to consider. The key to knowing which option best suits you is by weighing the benefits and demerits of each option and selecting the one that drives you close to your goals.
At ascend, we have a debt consolidation comparison and debt settlement guide that introduces numerous debt-relief options to you, so that you can pick the one that best suits you. You can also navigate through our blog for more information on Chapter 13 bankruptcy.