What You Need to Know About Bankruptcy in Las Cruces, New Mexico

Filing for bankruptcy is a significant decision that affects your finances and future. For residents of Las Cruces, understanding the essentials of bankruptcy can provide a clear path through the complexities of financial distress. As your dedicated Las Cruces bankruptcy lawyer, The Law Offices of Kenneth G. Egan is committed to guiding you through every step of this challenging process.

  1. Types of Bankruptcy

The most common types of bankruptcy for individuals are Chapter 7 and Chapter 13. Chapter 7 bankruptcy is often referred to as “liquidation bankruptcy,” which involves the sale of non-exempt assets to pay off debts. It’s suitable for those with limited income who cannot pay back their debts. Chapter 13, on the other hand, is a “reorganization bankruptcy” for individuals who have a regular income and can pay back part of their debts through a repayment plan. As your Las Cruces bankruptcy lawyer, we can help determine the right chapter for you.

  1. Eligibility Requirements

To file for Chapter 7 in New Mexico, you must pass a means test, which compares your income to the median income for a household of your size in New Mexico. If your income is below the median, you qualify for Chapter 7. If not, you may need to consider Chapter 13 bankruptcy. Consulting with a Las Cruces bankruptcy lawyer is crucial to navigating these requirements effectively.

  1. The Impact on Your Credit

Bankruptcy can have a significant impact on your credit score. A Chapter 7 bankruptcy can remain on your credit report for up to 10 years, whereas Chapter 13 stays for up to 7 years. However, the effect of bankruptcy on your credit can diminish over time, especially if you engage in positive financial behaviors post-bankruptcy. Your Las Cruces bankruptcy lawyer can provide strategies to manage and improve your credit post-filing.

  1. Bankruptcy and Your Assets

One of the biggest concerns for those considering bankruptcy is the potential loss of assets. New Mexico offers exemptions that may allow you to keep your home, car, and other essential items. For instance, the homestead exemption in New Mexico can protect a certain amount of equity in your home, while other exemptions cover personal property, retirement savings, and more. As a skilled Las Cruces bankruptcy lawyer, Kenneth G. Egan can guide you through these exemptions to protect your valuable assets.

  1. Life After Bankruptcy

Filing for bankruptcy does not mean the end of your financial life. In fact, it’s the beginning of a more manageable financial future. Many people find that they can start rebuilding their credit shortly after bankruptcy and eventually qualify for new credit lines, including credit cards and loans. With advice from a Las Cruces bankruptcy lawyer, you can navigate this new phase with confidence.

  1. How to Get Started

The process starts with consulting a knowledgeable Las Cruces bankruptcy lawyer who can offer tailored advice based on your unique financial situation. At The Law Offices of Kenneth G. Egan, we understand the challenges you face and are prepared to help you evaluate your options, complete the necessary paperwork, and represent you in court if needed.

Conclusion

Bankruptcy might seem daunting, but with the right guidance from a Las Cruces bankruptcy lawyer, it can be a valuable tool in regaining financial stability. If you’re in Las Cruces and considering bankruptcy, don’t navigate this complex process alone. Contact The Law Offices of Kenneth G. Egan to schedule a consultation. Let us help you understand your options and take the first step towards a fresh financial start. Call us today or visit our website to learn more about how we can assist you.