What happens during a Chapter 7 Bankruptcy Case?

The decision to file for bankruptcy protection under Chapter 7 is a serious one which should only be made after serious consideration and thought as well as consultation with a local bankruptcy attorney. Once a person concludes that Chapter 7 bankruptcy will offer the chance to get a fresh start financially, the next step is to determine how to proceed from that point.

In order to initiate a Chapter 7 bankruptcy action, the individual (the “debtor”) filing the case will need to do the following:

• Pay a filing fee of $335

• File a bankruptcy petition including information about oneself 

• Submit for filing a series of schedules —  or lists of debts and creditors which provides the bankruptcy court the specific information necessary to assess one’s financial situation, and

• various other forms including, but not limited to, a Statement of Social Security number  (required by BR 1007(f)) and Disclosure of Marital Status using Form NM LF 900 or NM LF 901

For those filing who want to pay the filing fee on an installment basis, they can file a form (1006-1) which provides for an installment schedule to do so. In addition, they can use the same form to seek a waiver of the fee provided the filer can show that he or she (a) has income less than 150 percent of the poverty guidelines last published by the United States Department of Health and Human Services (DHHS) applicable to a family of the size involved; and (b) is unable to pay the fee in installments. .

The United States Bankruptcy Court in New Mexico which has court locations physically in Albuquerque, Las Cruces and Roswell maintains its clerk’s office in Albuquerque. The Court provides for electronic filing of the bankruptcy forms and motions.    

In order to ensure that the case is filed properly, it is advisable to consult with New Mexico bankruptcy counsel. Such bankruptcy attorneys can make sure that the petition and other documents include the right information and the procedure is followed to the letter of the law.

In Albuquerque, Giddens & Gatton Law, P.C. has bankruptcy attorneys who offer expert handling of Chapter 7, Chapter 11, Chapter 12 and Chapter 13 bankruptcy cases and can specifically provide advice as to disposition of property in Chapter 7, Chapter 11 and Chapter 13 cases.. The New Mexico firm represents many debtors and creditors in Albuquerque, Santa Fe, Taos, Raton, Farmington, Gallup, Grants, Roswell, Los Lunas, Placitas, Belen and the rest of New Mexico. Contact Giddens & Gatton Law, P.C. at (505) 633-6298 to set up an appointment or visit the firm’s website at giddenslaw.com. Giddens & Gatton Law, P.C. is located at 10400 Academy Road N.E., Suite 350 in Albuquerque, New Mexico.