The Bankruptcy Process | Law Office of Jonathan M. Peake, LLC

THE NEW MEXICO BANKRUPTCY PROCESS

1) Meeting With a New Mexico Bankruptcy Attorney

You first need to discuss any pre-filing bankruptcy planning and general case overview. Many cases are not able to be filed immediately and require some strategy to protect valuable assets. The attorney will also be able to verify what chapter you can file and the advantages / disadvantages you have in your particular case.

2) Get Paperwork in Order

To get started, you must itemize your current financial situation: income, expenses, debt, etc. You will also gather documents relating to your residence, taxes, pay stubs, and a snapshot of your accounts. Your attorney will use this information along with knowledge of the bankruptcy process, to list your case in the best light possible to minimize any harm and maximize the protections of the bankruptcy court.

3) Filing With The Court

After all the paperwork has been completed by your attorney’s office in a way that works best for your case, you will have a chance to review the documents before they are filed electronically by your attorney. Any supporting documents will be turned over to the trustee - an attorney appointed by the bankruptcy court to review all the documents and make sure they are in compliance with current law.

At the time of filing a bankruptcy case, the automatic stay goes into effect, which will stops your creditors from contacting you until your case is concluded or special circumstances are met. The automatic stay also applies to any pending lawsuits, foreclosure actions, and wage garnishments.

4) § 341 Meeting / The Creditor’s Meeting

Around 30 days after filing with the court, a meeting will be conducted by the trustee - an attorney appointed to the case on behalf of the bankruptcy court. All persons filing must attend the meeting. Creditors may attend and ask questions, although this is very rare in a Chapter 7, and still infrequent in a Chapter 13. The trustee will make sure the paperwork was filled out property and in accordance with the rules and law at the time of filing. This meeting typically takes between 5 to 10 minutes, depending on the issues and complexity of the case.

If there are any objections over the paperwork or assets, they can typically be resolved by negotiations with the debtors counsel or the trustee. If anything cannot be solved by negotiations, the creditor may choose to have a judge hear the issues and make a final determination.

4) Chapter 13 plan confirmation

In the case of a chapter 13 bankruptcy, there may be follow up meetings or discussions regarding the plan. These negotiations will continue until an agreement has been reached between the creditors, the trustee, and the person filing the bankruptcy. Once that plan has been agreed to, the chapter 13 bankruptcy is then officially in effect and will last until the plan runs out its designated time period or circumstances change to where the plan is abandoned.

4) Discharge

In a chapter 7 bankruptcy, the creditors and trustee will have 60 days to challenge the persons right to discharge. If there are no challenges, or negotiations are worked out, the person will receive notice, shortly after the objection time period, from the bankruptcy court indicating that all their dischargeable debts have been discharged.

In a chapter 13 bankruptcy, a discharge is received when the plan is completed in the timeframe outlined in the confirmed plan. At this point, usually only a fraction of the debt has been paid to the creditors. All remaining dischargeable debt will be discharged and the case will be closed.

505.750.7702

CALL TODAY: FREE CONSULTATION