Posts by On Behalf of Giddens & Gatton Law, P.C.
Feeling the Heat after Bankruptcy Discharge
Most individuals who file for bankruptcy, particularly a Chapter 7 or Chapter 13 action, do so to get a fresh start. When debts are discharged via the bankruptcy, creditors’ rights to collect those debts are severely limited, if not rendered void. However, according to findings reported in the New York Times, several large banks may not…
Read MoreGetting Past the Automatic Stay in Bankruptcy
One of the most important features of the bankruptcy process is the automatic stay, which stops those from collecting debts from the party filing for bankruptcy protection. Specifically, under 11 U.S. Code § 362, the filing of a bankruptcy petition operates as a stay of: (1)… a judicial, administrative, or other action or proceeding against…
Read MoreExemptions Available to Chapter 7 Debtors in Bankruptcy Cases
Previously we discussed in a recent blog post the use of the homestead exemption by Debtors in Chapter 7 bankruptcy cases to protect the equity they have in their home. This particular exemption is but one of several which the State of New Mexico allows Debtors in this state to claim when filing for bankruptcy…
Read MoreEffect of Homestead Exemption in New Mexico Bankruptcies
In bankruptcy cases filed in the District of New Mexico, individual debtors filing for bankruptcy protection have the right to claim certain exemptions pursuant to either state or federal law, and can elect to use whichever is more favorable to them. Certain types of property or certain portions of the value of assets may be…
Read MoreThe Peculiar Meaning of Abandonment in Bankruptcy Cases
In any and all fields of law, certain nomenclature can often have a different meaning than in other settings. The term “abandonment” appears to be one of these words but, upon closer scrutiny, generates some confusion only as to who is actually abandoning property. An order from the United States Bankruptcy Court in Albuquerque permitting…
Read MoreWater Utility Cannot Avoid Large Unsecured Claim in Bankruptcy Case
A case involving the bankruptcy of a public utility in New Mexico providing water and sewer services to residential consumers demonstrates how a debtor cannot avoid certain legal requirements imposed on particular enterprises by the State and then use the lack of state action to avoid contractual obligations which reference the State’s involvement. Debtor Picacho…
Read MoreDetermining When Debt Levels Are Too High for Chapter 13 Bankruptcy
Individuals considering whether to file a Chapter 13 bankruptcy case must not have too much debt or they will not be eligible to file for bankruptcy protection under that chapter. The rationale underlying this ceiling stems from the concern that a debtor with too much outstanding debt would never be able to pay back a…
Read MoreSolar Energy Company Files for Chapter 7 Bankruptcy
In late July, Ascendant Energy, a solar technology company based in Owls Head, Maine, filed for Chapter 7 bankruptcy. The company will not repay approximately $780,000 in debt, acquired mainly through loans and grants from the Maine Technology Institute and investment funds from Coastal Enterprises, Inc. The company’s founder, Chris Straka, secured a patent in…
Read MoreTeaming Up With Your Creditors in Bankruptcy
Generally speaking, in most Chapter 7 and Chapter 13 bankruptcy cases, individuals filing such actions view their creditors – at least for the pendency of the case -as legal adversaries whose interests diverge and whose goals clash. By contrast, in some Chapter 11 corporate reorganizations, the corporation seeking bankruptcy protection will negotiate deals whereby current…
Read MoreNeither a Lender Nor a Broker Be
A recent ongoing case pending in the United States Bankruptcy Court in Albuquerque reflects a recurring difficulty borrowers have in dealing with putative lenders. According to a decision in the case of In Re Clark, Case No. 13-12132-j13, Adversary No. 13-1077 T. (U.S. Bankr. Ct. N.M. 2014), the underlying facts are significantly undisputed. The daughter…
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