Albuquerque Law Blog

Financial crisis symptoms that warrant Chapter 7 exploration

Many married couples in New Mexico are also in business together. In fact, some spouses were business partners long before they decided to become life partners, as well. If you and your spouse own a business together, you've likely encountered financial challenges at some point in your journey. If you're like most business owners, you likely have had a continual ebb and flow of financial ups and downs in your business career.

There are some red flags that should catch your attention as you review your company's financial standing, which you hopefully do or at least have someone else do for you on a regular basis. Disregarding certain issues can cause what may have been a resolvable financial problem to become a full-blown financial crisis. Thus, prompting a need to explore debt relief options such as Chapter 7 bankruptcy, which is not always the bad thing people think it is.

How could bankruptcy affect a veteran's disability benefits?

Unfortunately, the soldiers who dedicate their lives to serving our country often face significant financial struggles after they complete their duty. These struggles only become more of a challenge for veterans who have disabilities. 

Bankruptcy can help many people, including veterans, find the debt relief they deserve. However, many veterans might wonder how filing Chapter 7 bankruptcy will impact them, their family and the disability benefits they rely on?

Is filing for Chapter 7 bankruptcy worth it?

When in serious debt, most relief options sound appealing -- that is, outside of filing for bankruptcy. Bankruptcy is something that you and many other New Mexico residents may feel like you need to avoid as you have likely heard nothing more than horror stories about this form of debt relief. Chapter 7 bankruptcy can significantly improve your financial situation if you're willing to let it.

There are many advantages to pursuing a Chapter 7 filing. Of course, this form of bankruptcy protection also has some disadvantages. Understanding what they are can help you as you try to decide if seeking Chapter 7 relief is worth it for your particular situation.

When should you use a secured credit card?

Filing bankruptcy can help individuals find the debt relief they need and obtain a new financial start in their life. However, many people worry how bankruptcy will affect their credit score—and therefore, many future financial opportunities.

While it is true that bankruptcy can have a significant impact on someone's credit, there are ways that individuals can take action to build up their credit once again. One of the most common ways to do this is by obtaining a secured credit card. But many New Mexicans might wonder: what does that entail?

Seeking a mortgage after bankruptcy: What you need to know

For many Americans, buying a house is a huge milestone in their adult lives. It is a milestone of their financial independence. A home is without a doubt one of the (if not THE) most expensive assets that someone will own in their lifetime.

This is why people worry about their house when they deal with debt and other financial struggles.

Protect yourself: Know the signs of debt relief scams

There is no doubt that struggling with debt is difficult. It can significantly strain one's financial and emotional health, as they stress about how to pay off debts and cover monthly expenses at the same time. 

The stress and stigma of debt can make individuals want to find the fastest route to debt relief as possible. This is understandable, but people must be aware of scams that prey on those struggling with debt. 

Medical bills still the most common reason for bankruptcy

A visit to the doctor's office can be expensive. And yet, it is impossible for individuals to predict when they or a loved one will need medical care or suffer a medical emergency. Therefore, it is not easy for New Mexicans to plan for how they will pay for medical issues. 

This never-ending cycle is one of the main reasons that medical bills cause families so much financial trouble.

Is your credit card spending leading to financial crisis?

Most people in New Mexico have credit cards, and there are many reasons why this type of debt accumulates. When you think about the amount of debt that people carry, you may assume that it's because of medical emergencies or other unexpected costs they could not pay for out of pocket. In reality, credit card debt is often the result of discretionary spending. 

If you have a credit card, it's possible that you spend more than you realize. Sometimes, people can find themselves in financial trouble due to overspending on simple things and unnecessary purchases. If you have a significant amount of credit card debt and you cannot manage your payments, you may want to take a look at where your money is going each month. It might surprise you to see that it doesn't take a huge one-time purchase or unexpected cost to lead to a personal financial crisis.

What you should know about the bankruptcy trustee’s role in Chapter 7 cases

When someone files a Chapter 7 bankruptcy, a trustee is appointed to administer the bankruptcy estate. Understanding the chapter 7 trustee’s role in bankruptcy can help individuals prepare for the process and know what to expect.

Here is a brief overview of the trustee’s role in Chapter 7 bankruptcy.

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