Chapter 7 →

Helping you find a way out of debt while keeping what you own

Every year, more than 2,000 people file for Chapter 7 bankruptcy in New Mexico. Often referred to as the “liquidation bankruptcy,” Chapter 7 provides a debt relief option for those who otherwise would likely never escape their crushing debt.



If you are swimming deeply in debt, making credit card payments late, missing payments, or only paying monthly minimums, the stress can overwhelm you and take a toll on your personal relationships. Chapter 7 may be the only way you can find relief. You certainly are not alone.


At The Law Office of Jason Cline, I am dedicated to providing experienced legal services and comprehensive representation to individuals and business owners for all bankruptcy-related matters. I'm available to review your case, discuss your unique situation, and offer you the detailed legal counsel and advocacy you need to navigate the complexities of your unique situation. The Law Office of Jason Cline proudly serves clients in Albuquerque, New Mexico, as well as Rio Rancho, Santa Fe, Los Lunas, and other areas throughout the state.

Contact The Law Office of Jason Cline to schedule a consultation with a lawyer today at 505-595-0110

Chapter 7 Bankruptcy Attorney In Albuquerque, Rio Rancho, NM

Is Chapter 7 Bankruptcy Right for Me?

A woman is sitting at a table using a calculator.

What Is Chapter 7 Bankruptcy?

In a Chapter 7 bankruptcy, a trustee liquidates your nonexempt assets and distributes the proceeds among your creditors in full and final settlement of your debts. Nonexempt assets include possessions of value, such as jewelry or artwork, collections of value such as stamps or baseball cards, musical instruments (unless needed for your employment), and designer clothing and accessories. If you have equity in a second residence other than your primary home or in a vehicle, those assets may also be liquidated in Chapter 7 bankruptcy.



New Mexico law can help you protect your home, vehicle, equipment you need for work, some personal property, pensions and retirement savings, unemployment and workers’ compensation benefits, life insurance, and a percentage of your disposable income. The state’s “wildcard exemption” also allows you to protect a certain amount of cash, personal property, and real property.


Chapter 7 bankruptcy will discharge most unsecured debt, such as credit cards, personal loans, medical bills, and overdue utility payments. It may also discharge secured debt such as a mortgage or car loan; however, you must be willing to give up your home or auto if you want to discharge the debt.


Chapter 7 will not discharge debt such as child support or alimony arrearages or recent unpaid taxes. Discharge of student loan debt requires a different type of lawsuit.

What Are Some of the Requirements for a Chapter 7 Bankruptcy?

To prevent high-income people from taking advantage of an “easy out,” applicants for Chapter 7 bankruptcy must pass a means test. The means test assures the court that you do not have enough income to reasonably pay off your debt. You’ll also need to get financial counseling during the six months before you file. To ensure that you meet all these requirements and file the proper paperwork, you’ll need to meet with a bankruptcy lawyer well beforehand so that the process goes through as quickly as possible. Get started on the road to financial freedom today. Contact one of our bankruptcy attorneys now.

Disclaimer: We are a debt relief agency. We are attorneys who help people file for bankruptcy relief under the bankruptcy code.

Chapter 7 Bankruptcy Frequently Asked Questions

  • How can Chapter 7 bankruptcy help me get out of debt?

    Chapter 7 bankruptcy may allow qualified individuals to eliminate many types of unsecured debt, including credit card balances, medical bills, personal loans, and certain collection accounts. Attorney Jason Cline helps clients throughout Albuquerque, Rio Rancho, and surrounding New Mexico communities determine whether Chapter 7 is the right path toward financial relief.

  • Will filing Chapter 7 stop collection calls and wage garnishments?

    In most cases, yes. Once a Chapter 7 bankruptcy petition is filed, an automatic stay generally goes into effect, which can stop creditor collection efforts, wage garnishments, lawsuits, and collection calls while your case proceeds.

  • Can I keep my home and vehicle if I file Chapter 7 bankruptcy?

    Many New Mexico residents are able to retain important assets through available bankruptcy exemptions. Every situation is different, which is why Attorney Jason Cline reviews each client's assets, equity, and financial circumstances before recommending a strategy.

  • How do I know if I qualify for Chapter 7 bankruptcy?

    Eligibility is often determined through a means test that evaluates income and financial circumstances. During a consultation, Attorney Jason Cline can review your financial situation and explain whether you qualify for Chapter 7 relief under current bankruptcy laws.

  • Does Chapter 7 bankruptcy eliminate medical debt?

    Medical debt is one of the most common reasons people seek bankruptcy protection. In many cases, Chapter 7 bankruptcy can discharge qualifying medical bills and other unsecured debts, helping individuals regain financial stability.

  • Can bankruptcy help if I am facing foreclosure in Albuquerque?

    Depending on your circumstances, bankruptcy may provide temporary relief from foreclosure proceedings and create opportunities to evaluate available options. The Law Office of Jason Cline assists clients facing both overwhelming debt and foreclosure concerns throughout New Mexico.

  • How long does a Chapter 7 bankruptcy case usually take?

    Most Chapter 7 cases are completed within several months, although timelines vary depending on the complexity of the case. Attorney Jason Cline guides clients through every stage of the process and works to keep cases moving efficiently.

  • Will Chapter 7 bankruptcy permanently ruin my credit?

    Many people are surprised to learn that bankruptcy can be the first step toward rebuilding credit. While bankruptcy does affect your credit history, eliminating overwhelming debt may provide an opportunity to improve your financial position and begin rebuilding sooner.

  • Why should I hire a Chapter 7 bankruptcy attorney instead of filing on my own?

    Bankruptcy laws, filing requirements, deadlines, and exemption rules can be complex. Attorney Jason Cline has worked in bankruptcy law since 2002 and helps clients avoid costly mistakes while protecting their rights throughout the process.

  • What areas does Attorney Jason Cline serve for Chapter 7 bankruptcy cases?

    The Law Office of Jason Cline proudly assists clients in Albuquerque, Rio Rancho, Sandoval County, Santa Fe, Los Lunas, and communities throughout New Mexico with Chapter 7 bankruptcy, Chapter 13 bankruptcy, and foreclosure-related matters.

Start Your Fresh Financial Future Today

If overwhelming debt, creditor harassment, wage garnishments, or financial uncertainty are affecting your life, you do not have to face these challenges alone. Attorney Jason Cline has helped individuals and families throughout Albuquerque, Rio Rancho, Sandoval County, and communities across New Mexico navigate the Chapter 7 bankruptcy process with confidence and clarity.


With more than 20 years of bankruptcy experience, Attorney Cline provides personalized guidance designed to help you understand your options and pursue meaningful debt relief. Call (505) 595-0110 today to schedule a consultation and learn whether Chapter 7 bankruptcy may be the right solution for your financial situation.

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