Best Bankruptcy Lawyers in Roswell

About Bankruptcy Law in Roswell, United States

Bankruptcy law in Roswell, United States provides a legal framework for individuals and businesses that find themselves unable to pay their debts. This area of law offers a structured process to assist debtors in reorganizing or eliminating their debt under the oversight of the federal bankruptcy court. Bankruptcy can provide relief by halting collection activities and, in some instances, discharging certain debts entirely. However, it can also significantly impact one's credit score and financial future. Residents of Roswell typically file for bankruptcy under the U.S. Bankruptcy Code, which is applicable nationwide, but there can be some local nuances that are important to understand.

Why You May Need a Lawyer

There are several situations where legal assistance can be crucial when dealing with bankruptcy in Roswell. If you are overwhelmed by debt, facing foreclosure, or experiencing constant calls from creditors, a lawyer specializing in bankruptcy law can help you understand your options. Legal guidance is especially important for navigating the complexities of Chapter 7 or Chapter 13 bankruptcies, preparing the necessary documentation, and representing you in court. An attorney can also provide counseling on the long-term effects of bankruptcy and how to protect certain assets.

Local Laws Overview

While the U.S. Bankruptcy Code is federal, there are local rules that apply in Roswell. Residents must adhere to the procedural rules of the Bankruptcy Court for the District of New Mexico. Important local aspects include the means test requirements, which determine eligibility for Chapter 7 bankruptcy based on income and household size compared to the state's median. Additionally, Roswell residents must complete credit counseling from an approved provider prior to filing. Understanding exemptions, which dictate what property can be retained post-bankruptcy, is critical and varies at the state level.

Frequently Asked Questions

What types of bankruptcy can individuals file for in Roswell?

In Roswell, individuals typically file for Chapter 7 or Chapter 13 bankruptcy. Chapter 7 involves liquidating assets to pay off debts, while Chapter 13 allows for a repayment plan over three to five years.

How does the means test affect my eligibility for Chapter 7 bankruptcy?

The means test compares your income to the median income of New Mexico. If your income is below the median, you may qualify for Chapter 7. If it's above, you might need to file for Chapter 13 instead.

What debts are discharged in bankruptcy?

Debts commonly discharged include credit card debt, medical bills, and personal loans. However, student loans, child support, and taxes typically cannot be discharged.

Will bankruptcy stop creditor harassment?

Filing for bankruptcy initiates an automatic stay, which halts most collection actions by creditors, including lawsuits and wage garnishments.

Can I keep my home and car if I file for bankruptcy?

Possibly. Specific exemptions allow you to keep essential assets. A bankruptcy lawyer can help determine how to protect your home and car during the process.

How long does the bankruptcy process take?

Chapter 7 bankruptcy usually takes four to six months, while Chapter 13 involves a repayment plan lasting three to five years.

How will bankruptcy affect my credit score?

Bankruptcy will have a significant negative impact on your credit score, and it can remain on your credit report for up to 10 years for Chapter 7 and 7 years for Chapter 13.

Do I need a lawyer to file for bankruptcy?

While it's not required to have a lawyer, bankruptcy is a complex legal process, and an experienced attorney can help ensure your case is handled correctly.

What is the cost of filing for bankruptcy?

Filing fees for Chapter 7 are approximately $335 and $310 for Chapter 13, excluding attorney fees which vary based on the complexity of the case.

What happens after bankruptcy is discharged?

Once your debts are discharged, you are no longer legally obligated to pay them. You can start rebuilding your credit and financial stability.

Additional Resources

Helpful resources for those considering bankruptcy in Roswell include the U.S. Courts website for official bankruptcy forms and information. Local legal aid societies and organizations, such as New Mexico Legal Aid, provide free or low-cost assistance. The National Association of Consumer Bankruptcy Attorneys can help locate experienced practitioners.

Next Steps

If you believe bankruptcy may be right for you, consider scheduling a consultation with a local bankruptcy attorney to assess your situation. Ensure you gather all relevant financial information, including debt records, income statements, and asset details. Completing a credit counseling course with an approved agency is an important first step before filing. These steps can help you make an informed decision about how to proceed.