Can Bankruptcy Be Undone in New Mexico?

The decision to file for bankruptcy is generally made with great caution and attention. It can be a daunting financial and legal status to hold in a financially complicated moment of one’s life. If you have made a mistake in filing for bankruptcy due to changing circumstances, it is important to understand your options for moving forward. A New Mexico bankruptcy lawyer can assist in explaining the steps for modifying your bankruptcy status.
There is no simple answer to the question of un-doing bankruptcy after it has been properly filed and finalized. There are, however, unique circumstances in which the person filing for bankruptcy can attempt to modify or dismiss their case. While there is a possibility of adjustment to your bankruptcy case, it is typically challenging and extremely time-sensitive.
If you are considering an attempt to adjust or alter your bankruptcy case, it is important to seek legal counsel, as proper case assessment and guidance through prompt legal steps are needed.

Understanding Bankruptcy in New Mexico

Every state has specific laws and regulations in place that impact the types of eligibility requirements and exceptions. Even if you can’t completely reverse your bankruptcy claim, you may qualify for exemptions. Exemptions prevent creditors from taking certain essential possessions from you. New Mexico allows residents the choice between:

• Federal bankruptcy exemptions
• State-specific bankruptcy exemptions

Reviewing what these location-based exemptions entail can help as you determine what type of bankruptcy claim to file. New Mexico offers exemptions for an array of assets to a specific dollar amount, depending on the specifics of your unique case. These include:

• Pensions
• Retirement accounts
• Homesteads
• Motor Vehicles
• Tools of Trade
• Insurance
• Wages

While navigating the unknown future that comes with filing for bankruptcy, it can be a comfort to know how you may be protected. These New Mexico-based exemptions can be vital to the protection of your essential property and assets. A bankruptcy lawyer can assist you in filing for exemptions and protect you from aggressive creditors.

How Can Filing for Bankruptcy Affect My Credit?

There is no clear answer to how filing for bankruptcy will affect your credit, as each person has a unique credit history. However, you can anticipate how it will generally impact you. While bankruptcy can help resolve a current financial struggle, it also has future implications. It can impact you in the following ways:

• Appears on your credit record for up to ten years
• Can lower your credit score
• Difficulty qualifying for a new credit card
• Higher interest rates on active credit cards

While filing for bankruptcy can act as a fresh start for some who are overwhelmed with debts, it is important to consider the future implications of this status. It can be useful to consult with both legal and financial professionals who can assess your current standing and propose a way forward that considers both your present and future legal and financial health. While the negative effects of bankruptcy may be worth its benefits for many people, others may experience more disadvantages than benefits after filing.

FAQs

Q: What Happens When You File Bankruptcy in New Mexico?

A: When filing bankruptcy in New Mexico, you must first choose which type to file, either Chapter 7 or Chapter 13, which will determine if you proceed to liquidate your assets or create a repayment plan. After selecting the type of bankruptcy, you will file a petition in which you detail your specific financial standing.

You will be required to attend a creditors’ meeting and complete a credit counseling and financial management course. Implications on credit and finances will vary from case to case.

Q: How Do You Qualify for Chapter 7 in New Mexico?

A: To qualify for Chapter 7 bankruptcy in New Mexico, you need to meet several criteria. You must pass a means test that will consider your total income, expenses, and family size to ensure that this falls below the state median. You must not have had a recent Chapter 7 (within the last eight years) or Chapter 10 (within the last six years) bankruptcy discharge.

You must take a credit counseling course from an approved provider at least 180 days before filing. Finally, all of your assets and property should fit in New Mexico’s exemption laws. Meeting these criteria is required, but each individual case will have circumstances that could impact eligibility.

Q: Does Bankruptcy Pay Off Everything?

A: No, bankruptcy does not always pay everything off, as the specific type of bankruptcy filed and the unique debts involved will vary depending on each case. While some of your debts may be discharged, others may require repayment fulfillment and/or other arrangements that will be determined based on a number of factors. An attorney can advise you on your specific circumstances.

Q: Can a Bankruptcy Filing Be Reversed?

A: In certain situations, a bankruptcy filing might be reversed. This is again dependent on the type of bankruptcy filed, the unique debts involved, and the timeline of the case. As mentioned previously, bankruptcy is a time-sensitive process. Quick action can be the indicator that a bankruptcy case is adjusted or reversed. Reversing bankruptcy is difficult, especially for a layperson to do alone. A bankruptcy lawyer is crucial to help you try to reverse bankruptcy.

Gilchrist Law Firm, P.C., Can Assist You in Undoing Your Bankruptcy

If you fear you have made a mistake in filing for bankruptcy or if your circumstances have changed since filing, Grieta Gilchrist can help you attempt to modify or reverse your status. Gilchrist Law Firm, P.C., is prepared to assist you in assessing the feasibility of modification or reversal, sharing your options for moving forward, and navigating the legal procedures required.

You do not need to traverse the legal concerns that come with filing for or undoing a bankruptcy claim without help. Gilchrist Law Firm, P.C., wants to help put your mind at ease, as well as provide a sound assessment and advice within the unique circumstances of your case.

Contact Grieta Gilchrist today to request a case evaluation.