Chapter 7 Bankruptcy Law Firm in Albuquerque, New Mexico
TurnaroundBankruptcy offers debt-relief solutions for individuals with both business-related debt and consumer-related debt. Chapter 7 bankruptcy allows qualifying individuals, including business owners, to eliminate most unsecured debt and get a fresh start.
Stop Collection Actions Against You
Bankruptcy operates to freeze, or “stay,” all activities taken against you to collect or enforce a debt. This includes foreclosure actions, attempted repossessions, wage garnishment, and harassment by creditors. This ceasefire gives you time to evaluate your financial life and move back to financial stability.
Contact us to ask questions and obtain information about bankruptcy options.
Chapter 7 for Businesses
Corporations and limited liability companies do not receive a discharge of their debts in a Chapter 7 bankruptcy proceeding. Still, some businesses choose to file for Chapter 7 bankruptcy to engage a process whereby their debts are formally determined and the company is liquidated under the supervision of a court-appointed trustee.
An individual with a sole proprietorship may use Chapter 7 bankruptcy to discharge his or her debts, including debts that were incurred in the course of operating the sole proprietorship. If more than half of an individual’s debts were incurred in the course of operating a business, the Bankruptcy Code is more permissive of a Chapter 7 bankruptcy than it is vis-à-vis an individual whose debts are primarily consumer-related. Many owners of small businesses have used personal lines of credit or taken out a second mortgage to keep their businesses afloat. These are complex cases, and no two businesses are alike. Please contact us to arrange a free consultation with an attorney who will analyze your options.
Chapter 7 for Individuals With Consumer Debt
Not everyone qualifies to file a Chapter 7 bankruptcy, and not everyone who qualifies to file qualifies for a discharge of their debts. An individual who files for Chapter 7 bankruptcy must have income below a certain threshold, must be a resident (but not necessarily a citizen) of the United States, and must not have received a Chapter 7 bankruptcy discharge in the last eight years. An individual who chooses to file for Chapter 7 bankruptcy must make a full disclosure of all of his or her assets, and unless the assets are subject to certain “exemptions” from liquidation, they assets may be liquidated (sold) by the Chapter 7 trustee. The great majority of Chapter 7 debtors are able to exempt all of their assets from liquidation. TurnaroundBankruptcy will analyze your assets to verify that they may be exempted in bankruptcy.
Chapter 7 for Individuals Struggling to Make a Mortgage Payment
Filing for Chapter 7 bankruptcy does not allow a debtor to indefinitely retain a house for which he or she has fallen behind on mortgage payments. It may, however, provide indirect relief for the struggling homeowner by:
- Freeing up monthly income for the homeowner by eliminating unsecured obligations (e,g., credit card debts)
- Providing breathing space for the homeowner in foreclosure, allowing the homeowner additional time to save for relocation
- Enabling the homeowner to open a dialogue with the mortgage lender to discuss loan modification options.
- Allowing the homeowner to surrender a house, if he or she so chooses, without facing a deficiency judgment if the home is worth less than the amount owed on it.
If none of the above forms of indirect relief apply, a homeowner may choose to file a Chapter 13 bankruptcy and exercise his or her option to cure mortgage arrearages over the course of the Chapter 13 Plan (usually five years).
Divorce and Chapter 7 Bankruptcy
Married couples, including those that do not want to stay married for long, have the right to file a joint bankruptcy petition. Couples considering a velvet divorce may choose to file bankruptcy before the divorce to simplify the division of debts in divorce. In contrast, when an individual files for bankruptcy following divorce, the Bankruptcy Code may operate to make non-dischargeable certain debts allocated to the individual under a marital settlement agreement. Naturally, the discord that precipitates many divorces prevents a joint bankruptcy, and oftentimes, the financial hardship that motivates bankruptcy arises in the aftermath of, rather than as a prelude to, a divorce.
While TurnaroundBankruptcy does not render legal services in domestic matters (in other words, we will not file a divorce case), the firm tailors its legal advice for each client’s domestic circumstances. Please contact us to discuss the timing of your bankruptcy relative to a divorce and other options for accelerating your financial renewal.
Bankruptcy Law Firm in Albuquerque, New Mexico Tailoring Services to Each Client’s Unique Circumstances.
Call 505-944-2494 or contact us online to schedule a free consultation.