Personal Bankruptcy

Bankruptcy For Individual Consumers

Bankruptcy attorneys with Gatton & Associates, P.C., can assist clients with both Chapter 7 and Chapter 13 bankruptcy.

Simply put, Chapter 7 bankruptcy is a streamlined form of bankruptcy relief that discharges, or eliminates, most forms of debt in a short period of time, while Chapter 13 bankruptcy involves a repayment plan over the course of three to five years.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is known as a “liquidation” bankruptcy. All the individual’s assets go into a bankruptcy estate, with some exemptions. For example, a “homestead exemption” allows the individual to keep their primary residence up to a certain dollar amount. In addition, individuals can protect a vehicle, jewelry, tools of their trade, retirement accounts, etc. Nonexempt assets would be liquidated and those funds would be used to pay off creditors.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a type of “reorganization” that allows individuals to pay all or a portion of their debts over a period of years (usually three to five years) using their current income. When an individual files for bankruptcy under this chapter, foreclosure proceedings are stopped, creditors must stop their demands for payment, the individual is protected from being sued or harassed and there is the possibility of reducing interest rates on payments so that debts can be repaid.

Schedule a Free Consultation Today

To learn your options and which chapter of bankruptcy might be right for your situation, schedule a free, one-hour consultation by calling 505.271.1053. Or click here to give us some information about your situation.

Gatton & Associates, P.C., is located in Albuquerque, New Mexico, but we represent debtors and creditors throughout the state of New Mexico. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.