Top Bankruptcy Lawyers Las Cruces, NM

Las Cruces, NM Bankruptcy FAQs

• Where do I file for bankruptcy in Las Cruces, New Mexico?

  LAs Cruces is covered by the United States Bankruptcy Court District of New Mexico is at the Pete V. Domenici United States Courthouse on 333 Lomas Blvd. NW, Suite 360 • Albuquerque, NM 87102.

• Where can I get bankruptcy forms in Las Cruces, New Mexico?

  Local and official forms for Las Cruces are at https://www.nmb.uscourts.gov/forms/local-forms and https://www.uscourts.gov/forms/bankruptcy-forms, respectively.

• Is it advisable to protect assets from bankruptcy in Las Cruces by transferring them to close friends and relatives?

  No, it is not advisable to protect assets from bankruptcy in Las Cruces by transferring these to close relatives and friends. This is a form of fraud that is not favored by the law and would cause the insolvency case to be dismissed. If a case is dismissed in this manner, a new proceeding cannot be lodged in court for another 180 days.

• Can someone in Las Cruces who has a mean annual income below the state average file for liquidation bankruptcy if they successfully went through chapter 13 processes five years ago?

  No, a person in Las Cruces who has a mean annual income less than the state average cannot go for chapter 3 bankruptcy under these facts. Even if the person is impoverished enough under the law, they have undergone insolvency within the previous six years. There can be no new case filed until six years pass.

• What does the automatic stay in a chapter 7 bankruptcy do in Las Cruces?

  In Las Cruces, the automatic stay in a chapter 7 bankruptcy process stops all creditors from attempting to collect on their obligations. This freezes harassment tactics and calls, ceases lawsuits, and prevents the repossession of personal assets and the foreclosure of real estate. This is to prevent any single creditor from depleting the debtor's funds to the detriment of the rest.

• What is the distinction in Las Cruces between debt settlement and bankruptcy?

  In Las Cruces, the difference between debt settlement and bankruptcy is that the latter happens with the legal weight of the court while the former is founded on private negotiation. Only in formal insolvency cases are protections like the automatic stay order implemented. A settlement also does not prevent the further deterioration of credit scores.

• Why should businesses sometimes consider a debt workout instead of chapter 11 bankruptcy in Las Cruces?

  In Las Cruces, a chapter 11 reorganization bankruptcy may be unfavorable to negotiating and working out alternative payment schemes because it could sour intercorporate relations. The required disclosures before the court may paint the company in a negative light, and the management would have to worry about the courts instead of running the business.