New Mexico Bankruptcy Courts (NM)
Trustees and The New Mexico Bankruptcy Court look-back period for preferential transfers
Avoid all ostentatious spending during the months before filing. Luxury items, large cash advances, sporting goods, fire arms, and jewelry all raise suspicion in the eyes of interested parties. Trustees appointed by the New Mexico bankruptcy Court may review all expenditures during the one year before filing, so that unusual expenses, unexplained transfers, and preferential payments during the one year period can be offset, and require reimbursement.
Finding New Mexico Bankruptcy Court Office Buildings:
The New Mexico Bankruptcy Court Divisions are located in Albuquerque, Las Cruses, and Roswell.
If you file with a remaining cash balance in your checking account, the trustee may seek turnover. Many people pay regular expenses by personal check, only to overlook the days required for clearing. Although a venial mistake, the cash balance is still possessed by the debtor and the outstanding check is a debt owed that must properly be listed in schedules for discharge. To prevent this type of irritating mistake, pay regular monthly expenses by money order during the days before filing. Cash on hand must also be disclosed to trustees. If the average balance in a checking account is low, and no unusual or unexplained withdrawals occur, trustees seldom question payment of ordinary home expenses in consumer cases.