Albuquerque Law Blog

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.

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?

  • Best Lawyers | Best Law Firms | U.S.News | 2018
  • 2019 | Family Friendly Business
  • 2019 | Family Friendly Business 2020
  • BBB | Accredited Business | BBB Rating: A+
  • Martindale-Hubbell | Peer Rated | For Ethical Standards and Legal Ability | 2019
  • Martindale-Hubbell | AV Preeminent | Peer Rated for Highest Level of Professional Excellence| 2019
  • Rated By Super Lawyers | George Giddens, Jr. |
  • Rated By Super Lawyers | Christopher M. Gatton |
  • Avvo Rating | 8.9 Excellent | Featured Attorney Bankruptcy
Review Us

Office Location:
10400 Academy Road NE
Suite 350
Albuquerque, NM 87111

Phone: 505-273-3720
Fax: 505-271-4848
Map & Directions

Phone Numbers: