Posts by On Behalf of Giddens & Gatton Law, P.C.
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…
Read MoreCan Creditors Collect a Judgment Lien during Bankruptcy?
When an individual files for bankruptcy protection, he or she may have judgments against them. Some of these court judgments awarding certain sums to judgment creditors may have been secured if the judgment creditor took the steps necessary to file judgment liens in the counties where the bankruptcy debtor owns property. Once the debtor files…
Read MoreWHICH ASSETS ARE EXEMPT FROM CHAPTER 7 LIQUIDATION?
For many individuals or sole proprietors preparing to file for bankruptcy, Chapter 7 is the preferred choice. Filing for bankruptcy under Chapter 7 allows an individual or sole proprietorship business to discharge most debts in exchange for the liquidation of nonexempt assets, the proceeds from which are used to pay creditors. Not all assets must…
Read MoreEnforcement 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…
Read MoreNew 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…
Read MoreCan 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…
Read MoreKaiser Study Examines How Medical Debt Causes Distress Including Bankruptcies
At the beginning of last year the Kaiser Family Foundation issued a report examining how high medical bills can cause enormous financial problems leading, in some cases, to bankruptcy. The study identified seven features or themes which can explain why 1 out of every 3 Americans suffer severe financial consequences from high medical debt. The…
Read MoreThe Difficulty of Eliminating Student Loan Debt via Bankruptcy
As the cost of college tuitions and related costs have soared over the last twenty years, about 1 out of 4 former students find themselves refraining from paying back their student loans at various times over the course of their loan repayment period. The prospect of getting out from under that particular kind of debt…
Read MoreBusiness 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…
Read MoreHigh Medical Expenses Still the Biggest Drivers of Bankruptcies
The size and scope of debt created by medical expenses continues to be the biggest cause of bankruptcies in this country. According to a study by NerdWallet Health, a division of the price-comparison website, bankruptcies resulting from unpaid medical bills will affect nearly 2 million people this year. Nerd Wallet predicted at the time of…
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