When New Mexico citizens face financial challenges or some type of unexpected life changes, life can become very difficult very quickly. Many people have little or no savings, and unpaid bills begin to accumulate with not much chance to dig out of the financial deficit. Bankruptcy may be contemplated if the source of the debt is, for example, medical bills or credit card debt, but some debts are not dischargeable such as child support or government fines. Student debt has rapidly become almost a national epidemic, and although it is rare, under certain circumstances, it may be included in a bankruptcy proceeding.
Bankruptcies are on the rise among older adults, and one of the main reasons is medical debt. It is responsible for 60% of bankruptcy filings for people 65 and older. Older New Mexico residents may find themselves struggling to keep up with medical bills after spending all their savings, and they may no longer be working. Bankruptcy may be their only option.
In New Mexico and across the United States, many people experiencing unexpected life changes try to avoid filing for bankruptcy. Some credit card companies may accept smaller payments and forgive the rest of the amount owed. However, filing for bankruptcy may help debtors get back on track financially. The first step is to determine whether a person meets the financial qualifications to file for bankruptcy.
If you are like most people in New Mexico, filing for bankruptcy was never one of those things you expected to do in your life. However, if you are in a tough financial situation that you cannot find your way out of, it just might be that a Chapter 7 or a Chapter 13 bankruptcy could be the best solution for you. It is important for you to not look at this as a negative or shameful experience but rather as one that can set you up for a better financial future.
Credit card debt can get out of hand before you even know it. That's why it's helpful to have a plan of attack in place when attempting to pay down debt and get your life back on track financially. The road ahead is often tough, especially when you're working with a limited income. However, the following tips will help you decrease debt and improve your financial outlook.
Many Americans are overwhelmed with credit card debt, medical bills, mortgages and other expenses that they cannot keep up with. In fact, close to one million people file for bankruptcy every year in an attempt to reclaim control over their finances. If you are one of the many who face this problem, you may find yourself the target of collector and creditor phone calls. In some cases, collectors can use harassing measures to obtain a payment on the account. Once you file for bankruptcy, however, an automatic stay is put in place. This measure is designed to keep collectors from being able to contact you regarding your unpaid balance.
Consumers who live in New Mexico might think about all debt as being the same and, in a way, it is because it all boils down to some financial obligation owed to another party. However, there are definitely distinct types of debt and they each have different pros and cons associated with them. The different types of debt, secured and unsecured debt, may also inform what type of bankruptcy plan a person should consider if they are in need of that level of debt relief.
The main concern of many that file for bankruptcy is whether or not they will love their personal property in New Mexico. If you are in the position of having to contemplate bankruptcy, your fears are understandable. Fortunately, as we here at the Sanders Law Firm have had the privilege of telling many of our concerned clients, the law does allow you to protect certain types of property from being sold as part of a bankruptcy. Both federal and state bankruptcy exemptions exist. Some states allow you to choose which to apply to your case; New Mexico is among them.
While nobody likes to admit defeat, sometimes throwing in the towel is the thing to do. Roswell residents who worry that they cannot buy a home after filing for bankruptcy can relax. It will take some time and some work, but you can still achieve the dream of homeownership.
If you are struggling with debt, know that you are not the only one in Roswell dealing with this issue. Many of those that we here at the Sanders Law Firm have worked with in the past are in your same situation: hard-working people that have seen various life events leaving them facing inordinate expenses. Oftentimes, your debt dilemma can become so great that fixing it on your own is no longer a realistic option. In such a case, a personal bankruptcy may be your best chance at reclaiming a healthy financial outlook.