Bankruptcy

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…

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…

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…

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…

Secured and Unsecured Claims are treated slightly differently in Chapter 7 liquidations verses a Chapter 13 reorganization or a Chapter 11 corporate reorganization. In a Chapter 7, the Debtor generally discharges all unsecured debts and does not have to pay on any of these debts. The exception is if the debt is non-dischargeable (such as…

The United States Bankruptcy Court in Albuquerque decided to permit abandonment of property upon an unopposed motion by the Debtor itself. In the case of In Re College of Christian Brothers, Case No. 12-11195 j7 (Bankr Ct. N.M. 2014), the Court entered a default order granting a motion to abandon a pending claim held by…

Over the last several years we have heard stories of wage-earners filing Chapter 13 cases because their mortgage is under water after their adjustable-rate mortgage adjusted in the wrong direction. We have heard of small businessmen filing Chapter 7 liquidations because revenues are not keeping up with incurred debt. But until now few have heard…

The United States Ninth Circuit Court of Appeals ratified the use of the federal bankruptcy court ‘s contempt powers to enforce its orders to a party to cooperate in conveying property located in Mexico. Foreign individuals who purchase property in Mexico within a certain range of the border with America cannot buy property out right…