Albuquerque Law Blog

Can bankruptcy impact your career?

Bankruptcy can be a helpful option for many people struggling with debt. However, there are many myths about filing bankruptcy that can make people wary about pursuing this option to relieve their debt.

These myths cause many people to worry about how bankruptcy will impact their lives, including their careers. So, is it true that filing Chapter 7 bankruptcy can affect an individual's career?

Reasons to file for bankruptcy sooner rather than later

Many good reasons exist for people with seemingly overwhelming debt to file for bankruptcy protection, even though it can be a difficult choice. But sometimes it’s even more confusing to know when it’s time to take action.

Filing too early can have severe financial consequences if you are looking to discharge certain debts. However, in many cases, there are valid reasons to file as soon as possible to protect income and property.

Predatory loans could pose a risk before bankruptcy

It is common for individuals to take out new loans to repay older debts. In some cases, this might help them keep their debt under control.

Unfortunately, some of these loans might target people in financially vulnerable positions and increase the risk of debt in the long run. Regardless of whether or not individuals wish to pursue debt relief through bankruptcy, every New Mexican should be aware of the risks predatory loans pose to their financial health.

Top resolutions for 2020: Take care of debt

Many people keep the tradition of making a resolution each year on New Year’s Eve. That way, they can make a change in their life and get a fresh start for the new year.

In the past, the most common New Year’s resolutions often included losing weight, exercising and eating healthier. However, that changed this year, with many more people resolving to reduce their financial stress.

Three signs that debt could be spiraling out of control

As we have mentioned in past blog posts, debt has almost become a normal part of life. After finishing school, getting a necessary surgery or even purchasing a home, it is common for people to have debt.

Unfortunately, it is sometimes too easy for this debt to start becoming overwhelming, but how do individuals know their debt might be out of control, or when it might be time to consider filing bankruptcy?

Are your negative feelings tied to your overwhelming debt?

Like many New Mexico residents, you likely have your finances on your mind. However, rather than the simple thought of reviewing your savings or checking account, you may think about money constantly throughout the day. You may think of your debt as you buy lunch or wonder what purchases you can skip in efforts to save a few dollars.

Unfortunately, many people facing serious debt issues have such worries and thoughts that plague them throughout their day. Even if you know you need something, you may still try to think of ways to go without because your finances are in such rough shape. Significant debt can easily take a toll on you and others in more ways than you may have anticipated.

Post-bankruptcy: Beware of credit repair scams

Credit is one of the main concerns individuals have when they file bankruptcy. They fret over how bankruptcy will impact their credit, credit score, and many future opportunities that involve credit, such as obtaining a mortgage.

After receiving a fresh start through their bankruptcy discharge, people look for ways they can improve their credit so that they can move forward. This is natural and beneficial. However, individuals must be aware of false offers and scams that claim to repair their credit.

How can you know if Chapter 7 or Chapter 13 is right for you?

It is not easy to make the choice to file for bankruptcy. Maybe you made this choice after months of struggling to keep up, or maybe you are tired of dealing with constant contact from creditors and debt collectors. You've had enough, and you're ready to seek a better financial future through the bankruptcy process.

Making this decision is only the first step. You may also have to decide which chapter of bankruptcy is ideal for you. The two most popular options for individuals are Chapter 7 and Chapter 13, and there are different eligibility requirements for each. The right way forward for you depends on the details of your individual financial situation, the types of debt you have, and how you want to proceed through the bankruptcy process. Understanding both options can be helpful for anyone considering this step.

What is a reaffirmation agreement?

Filing Chapter 7 bankruptcy can help individuals find the relief they need from the debt that weighs on their shoulders. However, the bankruptcy process can involve several additional details, documents and agreements, that can make this process even more complex.

So, let's take a look at one such agreement that individuals might use during their bankruptcy: the reaffirmation agreement.

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.

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