New Mexico Bankruptcy Exemptions

Federal bankruptcy exemptions are available in the State of New Mexico. There is property that you can exempt or protect from creditors when you file bankruptcy. You have the option of utilizing either the federal or state exemptions. After filing for bankruptcy, the exempt property is safe. Be aware that there are certain debts, which you will not be able to erase in bankruptcy. These are non-dischargeable debts.

There are some limits on certain exemptions, such as equity that you have in a home or in a vehicle. The difference between the cost of the item and the amount owed on the item is the definition of equity. If the item is secured by a loan, and timely payments are made, the equity is protected by your exemptions. A debtor must generally pay the trustee the value of the non-exempt property to keep the property. If you choose to keep the property, continual timely payments ensure that the property is protected through the bankruptcy.

This is a list of some of the available exemption in the State of New Mexico. You can obtain and more detailed list of exemptions by contacting a qualified New Mexico bankruptcy attorney in your area. They will be able to list and explain all of the state exemptions. There is certain property, which is excluded or exempt that the debtor can keep based on their specific situation and personal income.

The best way to determine which exemptions to utilize is to meet with a qualified and proven New Mexico bankruptcy lawyer who can evaluate your individual case and guide you through the process. Contact an attorney today.


Homestead: Up to $30,000

Pensions: Tax-exempt retirement accounts, including 401(k)s, 403(b)s, profit sharing and money purchase plans, SEP and SIMPLE IRAs and defined benefit plans. Traditional and ROTH IRAs to $1,095,000 per person, Public school employees, Pension or retirement benefits

Insurance: Life insurance proceeds, Fraternal benefit society benefits, Life, health, accident or annuity benefits, withdrawal or cash value, if beneficiary is a New Mexico resident. Benevolent association benefits to $5,000

Miscellaneous: Property of business partnership, Ownership interest in unincorporated association

Personal Property: Clothing, Furniture and books, Health aids, Building materials, Jewelry to $2,500, Motor vehicle to $4,000 Cooperative association shares, minimum amount needed to be a member, Materials, tools and machinery to dig, drill, complete, operate or repair gas well, oil line or pipeline

Public Benefits: Unemployment compensation, Crime victims’ compensation, Workers’ compensation, General assistance, Occupational disease disablement benefits

Tools of Trade: Up to $1,500

Wages: Minimum 75% of disposable weekly earnings or 40 times the federal minimum, hourly wage per week, whichever is more; bankruptcy judge may order more for low-income debtors

Wildcard: $2,000 of any real or personal property, in lieu of homestead

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