New Mexico State Bankruptcy Laws
What Are The New Mexico Bankruptcy Exemptions?
New Mexico law protects all or a portion of your property from being seized by creditors or the bankruptcy trustee in a Chapter 7 bankruptcy. In a Chapter 13 bankruptcy, you are generally allowed to keep all of your assets and property. Certain exceptions may apply, so its wise to consult with a New Mexico bankruptcy attorney to find which of your assets will be protected in a bankruptcy filed in New Mexico. In general, the major New Mexico bankruptcy exemptions include:
|GENERAL NEW MEXICO EXEMPTIONS|
|Real Estate (the Homestead Exemption)
Up to $30,000 of equity in your homestead is protected.
Up to $4,000 of equity in one motor vehicle can be protected.
Personal property in the amount of $500; tools of the trade in the amount of $1,500; jewelry in the amount of $2,500; clothing, furniture, books, medical-health equipment and any interest in or proceeds from a pension or retirement fund. Also, individuals who cannot claim a homestead exemption have an additional “wild card” exemption of $2,000.In New Mexico, you have the choice of electing the federal exemption statutes rather than the New Mexico state exemptions. Consult with a New Mexico bankruptcy attorney for more details.
|View the complete list of New Mexico bankruptcy exemptions|
Please remember that this page provides general information only, and is not intended to provide legal advice. The information is not a substitute for the advice of a qualified bankruptcy attorney. If you need legal assistance, consult an attorney.
Which state’s exemption laws apply in your bankruptcy?
Generally, the laws of the state in which you lived for the 730 days (2 years) prior to filing a bankruptcy petition will apply in your bankruptcy.
If you have not lived in the same state for the 2 years immediately prior to filing your bankruptcy petition, the laws of the state in which you lived for the majority of the 180-day period preceding the 2-year period will likely apply.
If application of the preceding general rules renders you ineligible for exemptions under any states laws, you may be allowed to choose the federal exemptions applicable in your bankruptcy.
Is New Mexico a community property state?
Yes, New Mexico is a community property state. Because it is a community property state, you are responsible for any debts that your spouse incurred while you were married. You are therefore equally liable for your spouses debts even if you did not voluntarily assume liability for them by, for example, cosigning for a loan given to your spouse.
How did your senator vote on the new bankruptcy laws?
Following years of intense lobbying by creditors, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). How did your Senators vote on these largely pro-creditor provisions?
Bingaman (D-NM) – NAY
Domenici (R-NM) – YEA
New Mexico Bankruptcy Court Locations:
U.S. Bankruptcy Court
421 Gold Avenue SW, Room 316
Albuquerque, NM 87102
Note: You may not have to actually go to one of the above bankruptcy courts. Trustees often conduct your meeting at a local venue.
Although bankruptcy is federal law, the bankruptcy courts in each jurisdiction have local rules that must be followed. A local bankruptcy attorney will be familiar with the specific rules in your area.