Bankruptcy Lawyer Albuquerque | Expert Bankruptcy Attorney

We are a team of bankruptcy lawyers in Albuquerque, NM. Our expert bankruptcy attorneys provide free consultations. 

BANKRUPTCY BASICS

Financial troubles can be caused by many different things.  Whether they’re caused by the loss of a job, a healthcare problem or a slump in the real estate market, sometimes people just end up in situations where they have more debt than they can afford to repay.  If you are in a situation like this, bankruptcy may be a good option for you.  We know that the thought of filing a bankruptcy can be scary to many people, but the Bankruptcy Code exists to help struggling consumers get a fresh start, not to punish people.  Filing a bankruptcy provides someone with a lot of protection from creditors; once someone has filed a bankruptcy it becomes illegal for their creditors to contact them and stops the collection calls.  When an individual person or couple needs to file a bankruptcy, there are two main types of consumer bankruptcies they would choose from, a Chapter 7 and a Chapter 13.       

CHAPTER 7

Chapter 7 bankruptcy, or a liquidation bankruptcy, is what most people think of when they think of bankruptcy.  As long as someone qualifies for a Chapter 7, when they file most debts are discharged, meaning that they no longer need to be repaid.  Debts that can be discharged in a Chapter 7 include credit card debt, cash advance/payday loans, debt owed due to a foreclosure, and many other types of unsecured debt.  People qualify for a Chapter 7 as long as they do not have more assets or income than can be exempted.  Eric Ortiz Law provides a free consultation for people considering bankruptcy and will determine if they qualify for a Chapter 7.  Eric Ortiz Law offers very affordable flat rate Chapter 7 bankruptcies and can work with you to make payment arrangements.     

CHAPTER 13

Chapter 13 bankruptcy, or a reorganization, is a type of consumer bankruptcy that is an option for people who have more debt than they can afford, but also have too many assets or have too much income each year to qualify for a Chapter 7.  When someone files a Chapter 13 with us we will work with the bankruptcy trustee and creditors to develop a repayment plan that they can afford.  This plan will include a determination of an affordable monthly payment amount, and may reduce the interest or principal owed on certain debts.  Once the plan is approved you simply make one monthly payment to the bankruptcy trustee and the trustee distributes it amongst creditors.  Usually Chapter 13 plans are designed to be paid off in a period of five years.  In most cases Eric Ortiz Law can file a Chapter 13 for an upfront payment of $1,500 - $2,000.  Depending on the complexity of the individual bankruptcy the total cost could be more than what is paid up front, but if there are any additional legal fees they would get paid out of the monthly plan payment.     

HOW BANKRUPTCY IMPACTS CREDIT

Many people think that if they file a bankruptcy they will never be able to get financing for a car or home ever again.  In reality, most people can still qualify for an auto loan immediately after filing bankruptcy, and if they are diligent about rebuilding credit it is not uncommon for people to qualify for a home loan three years after filing a bankruptcy.  In fact, some people will actually see their credit score go up after they file a bankruptcy if they have many unsecured debts that get discharged with the help of a bankruptcy attorney.  Although most credit reporting agencies will report that someone filed a bankruptcy for ten years after it is filed, most lenders will stop considering it in much less time.  Usually the impact of a bankruptcy on credit is more akin to having no credit than having bad credit; as long as you’re careful after filing a bankruptcy good credit can be built without difficulty.  Call us today to schedule a consultation with one our best bankruptcy lawyers in Albuquerque, NM.

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