How Long Do You Have to Object to Exemptions in Bankruptcy in New Mexico?

Bankruptcy in New Mexico can be a way to allow those who are in debt to start fresh. Many people must file for bankruptcy due to circumstances beyond their control, such as a major illness, divorce, or due to the loss of a job. Even if you have to file for bankruptcy, you still have rights. You may also be wondering how long do you have to object to exemptions in bankruptcy in New Mexico.

Understanding Bankruptcy

The federal debt relief program can protect your possessions. Although, because of more recent changes, creditors are allowed to foreclose, repossess, evict, and take wages, an automatic stay in bankruptcy can serve as a protection from these actions.

An automatic stay allows a trustee to place all of your assets into a bankruptcy estate, which can prevent creditors, collection agencies, or the government from coming after your assets. In most cases, the Bankruptcy Code Section 362, or the automatic stay, will become active as soon as you file and will remain so until a judge declares the case to be over.

Additionally, a Chapter 7 discharge of the Bankruptcy Code can also be an option to relieve you of your debts if you qualify. It forgives you of many of the debts that you have incurred, such as medical bills, credit card debt, and certain loans. Keep in mind that debt negotiation may also be an option for you.

Different Types of Consumer Bankruptcy

There are several kinds of consumer bankruptcy that can be filed. When you fall behind on paying a debt (by one month) that is secured, then Chapter 13 bankruptcy may be filed. Once a payment is missed, then a bank may start the foreclosure process without even hearing the person in debt’s reasoning for the late payment.

Chapter 7 bankruptcy may be a good choice for those who use at least one-third of their income to pay off debts. A judge can discharge some of your debts as soon as six months, as long as there is no apparent evidence of fraud.

New Mexico Bankruptcy Exemptions

Property that is exempt from bankruptcy is saved from being taken away from creditors. There are unwritten and written property exemptions within New Mexico. There are also formal and informal exemptions.

Formal Bankruptcy Exemptions

There are several formal state exemptions that can be filed as long as you have lived in the state of New Mexico for two years. Some of these exemptions include:

Homestead exemption. A homestead exemption involves the amount of equity that you have in your home. If you have at least $60,000 in equity or less, then creditors cannot access that money.

Motor vehicle exemption. If you have up to $4,000 in equity in a vehicle, then your property will be protected.

Personal property. Typically, personal belongings such as home appliances, tools, furniture, jewelry, and electronics.

Wages earned. You may be concerned that if you file for bankruptcy, you will not be able to pay current bills, but your wages can be protected under New Mexico laws.

A New Mexico bankruptcy exemptions lawyer can help you discover what exemptions you qualify for or which ones most apply to your situation and your needs.

Informal Bankruptcy Exemptions

Informal exemptions in bankruptcy are legal loopholes that a bankruptcy lawyer may be able to help you find, helping you avoid as much of your personal property as possible. To discover what informal exemptions may be available to you, consult with a bankruptcy exemption lawyer for assistance.

Objecting to an Exemption

An interested party, such as a creditor, can object to exemptions filed in your bankruptcy case. These creditors can object to some of the debts listed if you have a repayment plan or if your debts were to be canceled.

If you were to object to an exemption of the listed property claimed to be exempt, you have up to 30 days after meeting with creditors or after changes have been made to the list of exempt property or supplemental schedules.

FAQs

Q: Can Bankruptcy Take Away All of Your Debts?

A: Yes, bankruptcy can take away all of your debts in certain circumstances. Note that this is not always the case, however. Filing for bankruptcy does not remove alimony payments, child support payments, student loans, loans that were obtained by giving false information, or if there is a mortgage or other liens that are not paid within the bankruptcy case.

Q: Does the Debtor Have the Right to Object to Bankruptcy Discharge?

A: In the case of Chapter 7 bankruptcy discharges, you, the debtor, may not have the legal right to object to a bankruptcy discharge. An objection to the bankruptcy discharge can be filed by a creditor, or a trustee who is involved in the case. In order for a creditor to object to a bankruptcy discharge, they must file the objection within the proper timeline.

Q: What Is the Wild Card Exemption in New Mexico?

A: A wild card exemption in New Mexico in regard to a bankruptcy case allows for those who live in the state to request a certain amount, up to $15,000, for assets that are not under the protection of other exemptions. With this exemption, you may protect several types of property.

Q: Can Your Credit Score Be Affected by Filing for Bankruptcy?

A: Your credit score may be affected by filing for bankruptcy; however, your credit score may already be lower due to unpaid bills. If that is the case, then your credit score may not be further affected. Filing for bankruptcy will be noted on your credit history for a time; however, your previous debts will be erased from your credit history. This allows you to start over and build a new credit score.

Consult a New Mexico Bankruptcy Exemptions Lawyer

Filing for bankruptcy in New Mexico does not have to be your financial downfall. Rather, it can be a way to give you a fresh start. Those who file for bankruptcy have to do so because of harsh life circumstances like a serious illness, loss of a job, or divorce. If you have to file bankruptcy and are wondering about bankruptcy exemptions, consult with a bankruptcy exemptions lawyer. Contact Gilchrist Law Firm, P.C., for assistance.