New Mexico Bankruptcy Guide and Forms Package for Chapters 7 or 13
What is this form?
The New Mexico Bankruptcy Guide and Forms Package for Chapters 7 or 13 provides essential documentation and instructions for individuals considering bankruptcy. It is designed to assist filers with the process of filing under Chapter 7, which involves liquidation of assets, or Chapter 13, which allows for a repayment plan. This package contains detailed guidance to navigate the complexities of both bankruptcy chapters, making it distinct from other legal forms that may not include comprehensive instructions or resources.
Form components explained
- Instructions on deciding between Chapter 7 and Chapter 13 bankruptcy.
- Form for Chapter 7 Statement of Your Current Monthly Income (Official Form 122A-1).
- Form for Chapter 7 Means Test Calculation (Official Form 122A-2).
- Form for Chapter 13 repayment plan submission.
- Guidance on exemptions and property that can be retained during bankruptcy.
When to use this document
This package should be used when an individual is facing financial difficulties and is unable to pay debts. If you are considering bankruptcy as a solution to manage or eliminate your debts, this package will provide the necessary forms and instructions to initiate the filing process for either Chapter 7 or Chapter 13 bankruptcy.
Who can use this document
This guide is intended for:
- Individuals or married couples considering bankruptcy.
- Those with significant debt they can no longer manage.
- Filers who prefer to navigate the bankruptcy process without legal representation, although attorney consultation is recommended.
Steps to complete this form
- Identify whether to file under Chapter 7 or Chapter 13 based on your financial situation.
- Complete the Chapter 7 Statement of Your Current Monthly Income (Form 122A-1) to assess your eligibility.
- If filing Chapter 7, determine whether to complete the Means Test Calculation (Form 122A-2) based on your income.
- If filing Chapter 13, draft your repayment plan to submit to the court.
- Ensure all necessary exemptions are listed on Schedule C (Form 106C) if applicable.
Is notarization required?
In most cases, this form does not require notarization. However, some jurisdictions or signing circumstances might. US Legal Forms offers online notarization powered by Notarize, accessible 24/7 for a quick, remote process.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Typical mistakes to avoid
- Failing to complete all required forms or submitting incomplete documentation.
- Not assessing income accurately for the Means Test.
- Neglecting to list all creditors and debts when filing.
- For skipping to list exempt property, potentially allowing the trustee to liquidate it.
Why use this form online
- Immediate access to up-to-date legal forms and instructions.
- The ability to download and edit forms at your convenience.
- Reliable documentation created by licensed attorneys.
Legal use & context
- This form package is legally recognized in New Mexico for individuals seeking bankruptcy relief.
- Completing these forms accurately is critical to ensure compliance with local bankruptcy laws.
- Filing for bankruptcy can help in discharging eligible debts, but some debts may survive the bankruptcy process.
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FAQ
Six months of paycheck stubs. six months of bank statements. tax returns (the last two years) current investment and retirement statements. current mortgage and car loan statements. home and car valuations (printouts from online sources work)
How soon can you file for Chapter 13 after Chapter 7 bankruptcy?You can file for a Chapter 13 before four years if no debts were discharged in the Chapter 7 filing, but if you had debts discharged in Chapter 7 and want to have debts discharged in Chapter 13, you must wait four years.
B 101 Voluntary Petition for Individuals Filing for Bankruptcy. B 101A Initial Statement About an Eviction Judgment Against You (only if you have eviction judgment against you)
Key Takeaways. Chapter 7 bankruptcy doesn't require a repayment plan but does require you to liquidate or sell nonexempt assets to pay back creditors.Chapter 13 bankruptcy eliminates qualified debt through a repayment plan over a three- or five-year period.
Chapter 13 Is Likely to Worsen Your Finances When your Chapter 13 case is dismissed, you are often in a far worse financial position. That's because the interest on your unpaid debts has continued to mount as you've struggled to make payments. And once you're out of bankruptcy protection, you have more debt than ever.
A Chapter 13 bankruptcy involves repaying some or all of your debt over a three- to- five-year period, while a Chapter 7 bankruptcy involves wiping out most of your debts without paying them back.In that way, a Chapter 13 may be better for your credit than a Chapter 7.
With Chapter 7, those types of debts are wiped out with your filing's court approval, which can take a few months. Under Chapter 13, you need to continue making payments on those balances throughout your court-instructed repayment plan; afterwards, the unsecured debts may be discharged.
Chapter 11 bankruptcy works well for businesses and individuals whose debt exceeds the Chapter 13 bankruptcy limits. In most cases, Chapter 13 is the better choice for qualifying individuals and sole proprietors.
In many cases, Chapter 7 bankruptcy is a better fit than Chapter 13 bankruptcy. For instance, Chapter 7 is quicker, many filers can keep all or most of their property, and filers don't pay creditors through a three- to five-year Chapter 13 repayment plan.
