What Reasons Force People into Bankruptcy

A study conducted relating to bankruptcies filed back in 2010 lists the 10 main reasons why people were filing bankruptcy that year. It showed:   Medical Expenses (42%) Job Loss (22%) Uncontrolled Spending (15%) Divorce (8%) Unexpected Disaster (7%) Avoiding Foreclosure (1.5%) Poor Financial Planning (1.5%) Preventing Loss of Utilities (1%) Student Loans (1%) Preventing…

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Enforcement of Judgments in New Mexico

When a plaintiff sues a defendant to recover monies owed by the defendant and eventually succeeds in winning the suit, an award of damages is incorporated in to the judgment of the court identifying the exact amount of the judgment and whether any court costs, attorney’s fees and interest may also be part of the…

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New Mexico Law on Garnishment Withholding

In the previous blog post, the question of whether filing bankruptcy can stop a garnishment collection was addressed.  As discussed, many types of garnishments can be stopped by the mere filing of a bankruptcy case because an automatic stay will effectively suspend, if not end, any such collection. However, recovery of some priority debts via…

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Can Filing Bankruptcy Stop Garnishments?

Garnishment actions represent one of the primary methods in which certain debts are collected. If a plaintiff (a person  company or governmental entity) sues an individual and obtains a judgment against that individual, the plaintiff can take additional steps to garnish the defendant’s regular wages. Separated and divorced spouses seek garnishment of wages from their…

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Business Failures Leading to High Number of Chapter 7 Bankruptcies

According to the U.S. Small Business Administration, over 50% of small businesses fail in the first year and 95% fail within the first five years. In his book Small Business Management, Michael Ames gives the following reasons for small business failure: •Lack of experience •Insufficient capital (money) •Poor location •Poor inventory management •Over-investment in fixed…

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