New Mexico State Exemption List
Under New Mexico bankruptcy law you can use the exemptions found in the U.S. bankruptcy code (11 U.S.C. § 522(d)) or the exemptions provided under New Mexico bankruptcy law.
New Mexico Bankruptcy law does not allow you to mix and match from the two list. You must choose either the federal exemption list or the state exemption list. If you choose the New Mexico State law exemptions, there are several United States exemptions that do exist outside the federal bankruptcy code. Where these exemptions are concerned, you can use them in addition to your state law exemptions. The most important non-bankruptcy exemptions are: wages, social security benefits, civil service benefits and veteran’s benefits.
The following table summarizes the New Mexico State exemptions that can be claimed for real and personal property. These exemptions are filed in the bankruptcy petition. There may be rules about which exemptions that may be used if you have not lived in New Mexico for the two previous years before you filed bankruptcy.
Exempt property is property that can not be claimed by unsecured creditors. You must own an interest in the property to claim it as exempt and not all of your property may be covered by a matching exemption listed. The goal of exemptions is to allow the bankruptcy filer to maintain enough resources to establish a fresh financial standing after declaring bankruptcy.
It is important to discuss all exemptions with a New Mexico Bankruptcy Attorney prior to filing bankruptcy in New Mexico. This list is not exhaustive and is just a general description of allowable exemptions.
One motor vehicle
|
Exemptions
|
Exemption Amount
|
Statutes
|
| Homestead |
$30,000(single)/$60,000 (Joint) |
42-10-9 |
| If the debtor does not own a homestead, he may claim exemptions, in addition to other exemptions, of real or personal property in the sum of $2,000 in lieu of the homestead exemption. |
$2,000 (Single)/$4,000 (Joint) |
42-10-10 |
| Tools of the trade |
$1,500/$3,000 |
42-10-1,2 |
One motor vehicle |
$4,000/$8,000 |
42-10-1, 2 |
| Personal Property |
$500 (Single)/$1,000 (Joint) |
42-10-1, 2 |
| Jewelry |
$2,500 (Single)/$5,000 (Joint) |
42-10-1, 2 |
| Benevolent association death benefits |
$5,000/$10,000 |
42-10-4 |
Life, accident, health insurance benefits or annuities Funds in escrow for payment of construction contractor
Ownership interest in unincorporated
association
Life insurance proceeds
Property of business partnership
Proceeds from pension/retirement fund
Retirement benefits - educational
Retirement benefits – public employees |
|
42-10-3
57-28-6
53-10-2
42-10-5
54-1-25
42-10-1, 2
22-11-42
10-11-135;
10-11-136 |
|
Wage Garnishment Exemption
Minimum 75% of disposable earnings or 40 times the federal hourly minimum wage, whichever is more; bankruptcy judge may authorize more for low-income debtors
|
|
N.M. Stat. Ann. § 35-12-7
|
|
Wage Garnishment Exemption
Pensions – judges
Pensions – magistrates
Public Assistance
State police pension
Clothing, books, health equipment and
furniture
Construction materials
Cooperative association shares
Minimum amount
needed to be a
member
Oil/gas well materials subject to lien
Motor vehicle
Crime victims compensation
Occupational disease disablement
benefits
Unemployment compensation
Workers compensation
|
Minimum is seventy five percent of disposable earnings or 40 times the federal hourly minimum wage, whichever one is more.
|
N.M. Stat. Ann. § 35-12-7
10-12-18
10-12A-12
27-2-21
29-4-10
42-10-1, 2
48-2-15
53-4-28
70-4-12
42-10-1, 2
31-22-15
52-3-37
51-1-37
52-1-52
|
***Certain debts such as mortgages, deeds of trust or tax liens will not be wiped out by bankruptcy. The lender will have the right to foreclose on you if you fail to pay your certain debt obligations. ***