Legal Question in Bankruptcy in New Mexico

Moving to NM, Chapter 7

We want to move to NM from another state ASAP so the kids start school on time (8/10). We know we won't have time do file chapter 7 in our current state and want to file in NM as soon as we move. We own a house in this other state but are behind on the mortgage and home equity loan. The house will foreclose. Is it ok to abandon our current home and move to another state prior to filing? How would this work? Thanks.


Asked on 7/05/07, 11:39 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Moving to NM, Chapter 7

Due to some "anomalies" in the recently passed bankruptcy act, it may make sense to file before the home is foreclosed (you can include the mortgage as an expense on the means test, and there may be tax advantages). You will need to wait 91 days after moving before you can file in the new jurisdiction. You also may want to look at certain issues related to available exemptions before deciding when/where to file. See a bankruptcy lawyer immediately in your current state in order to go over these issues. If you move during the case, that is not a problem, although you will likely have to be here for the section 341 meeting of creditors (scheduled about a month after filing). If you file now, you may still get a 341 meeting date before August 10.

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Answered on 7/05/07, 12:01 pm


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