Bankruptcy For Consumers And Businesses
The thought of dealing with overwhelming amounts of debt — whether personal or business — can be extremely daunting. There are various options you can pursue to get the debt relief you need. One viable option is bankruptcy. Bankruptcy can help you get a fresh start and move forward.
The lawyers at Giddens & Gatton Law, P.C., in Albuquerque, can help explain your options for bankruptcy and help make sure that you understand what options you can pursue. We offer extensive experience handling bankruptcy law matters, including representation for both creditors and debtors.
Bankruptcy For Individual Consumers
If you are considering filing for bankruptcy anywhere in New Mexico, the next step to take is to talk with a lawyer at Giddens & Gatton Law, P.C. We can help explain consumer bankruptcy and what the benefits are to filing bankruptcy. We assist clients with Chapter 7 and Chapter 13 bankruptcy. Once you file for bankruptcy, creditor harassment stops and the foreclosure process comes to a halt.
Following, we provide a brief summary of the qualifications required for Chapter 7 and Chapter 13 bankruptcy.
How do you qualify for Chapter 7 bankruptcy?
This chapter helps individuals discharge unsecured debts, such as those from medical bills and credit cards. To qualify, an individual, whose debts are primarily consumer debts, must pass a means tests to determine whether their income allows monthly payments to creditors. The means test does not apply if the debts are primarily business debts. Chapter 7 does not have a given debt limit to apply.
How do you qualify for Chapter 13 bankruptcy?
Chapter 13 helps individuals protect property and avoid eviction procedures. Individuals with considerable income who have unsecured debts of up to $419,275 and secured debts of less than $1,257,850 may be eligible. However, potential candidates must prove their capacity to pay the regular monthly obligations or installments in accordance with the repayment plan that is involved in Chapter 13.
Bankruptcy For Businesses And Farmers
Our attorneys are experienced at handling Chapter 11 business bankruptcy and Chapter 12 family farms bankruptcy and related matters. We work with business owners and farmers throughout New Mexico and strive to make the bankruptcy process as seamless as possible. We can provide advice on how tax issues may affect bankruptcy and advise on various strategies for protecting assets in bankruptcy.
Below, we share more details about Chapter 11 and Chapter 12 bankruptcy as a reference regarding what they are and who can apply for each chapter.
What is Chapter 11 bankruptcy?
It is a form of bankruptcy for business owners and individuals to stop actions including potential evictions, foreclosures, property seizures and collection procedures after filing. The goal is to develop a financial plan to be further agreed upon by all the parties involved. Thus, business owners can retain their source of income while the bankruptcy process is in progress. There is no debt limit for a regular Chapter 11 case. For small businesses, there is Subchapter V of Chapter 11, which has many advantages over regular Chapter 11. The debt limit to apply for Subchapter V relief was recently increased from $2,725,625 to $7.5 million.
What is Chapter 12 bankruptcy?
It assists owners of family-run businesses – specifically, farms and fisheries – who are struggling with debt and whose incomes depend on their businesses. An individual, married couple, legal business, partnership or corporation may be candidates to apply to this chapter. In addition, it is a faster and less expensive process to settle debts than, for example, Chapter 11. The debt limit for Chapter 12 is $10,000,000.
Each chapter has stringent requirements and procedures to meet, as well as unique benefits. If you have more questions about the chapter that could best help you relieve your debt, our lawyers are ready to assist you.
Schedule An Appointment
You can contact us to book your first appointment by calling 505-273-3720 or by completing a short contact form. You will meet directly with one of our experienced bankruptcy attorneys at your first consultation. Our office is in Albuquerque, and we handle bankruptcy cases throughout New Mexico.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.