The New Mexico bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in New Mexico. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
In New Mexico, you also have the choice of using the federal exemption statutes instead of your New Mexico exemptions.
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in New Mexico you may also use certain federal exemptions in addition to your New Mexico exemptions.
ASSET | EXEMPTION DESCRIPTION | LAW SECTION |
Homestead | Married, widowed or supporting another may claim real property to $30,000 (joint owners may double) | 42-10-9 |
Insurance | Benevolent association benefits to $5000 Fraternal benefit society benefits Life, accident, health or annuity benefits, withdrawal or cash value, if beneficiary is a New Mexico citizen | 42-10-4 59A-44-18 42-10-3 |
Miscellaneous | Ownership interest in unincorporated association Property of business partnership | 53-10-3 54-1-25 |
Pensions | Pension or retirement benefits Public school employees | 42-10-1, 42-10-2 22-11-42A |
Personal Property | Books, health equipment & furniture Building materials Clothing Cooperative association shares, minimum amount needed to be member Jewelry to $2500 Materials, tools & machinery to dig, torpedo, drill, complete, operate or repair oil line, gas well or pipeline Motor vehicle to $4000 | 42-10-1, 42-10-2 48-2-15 42-10-1, 42-10-2 53-4-28 42-10-1, 42-10-2 70-4-12 42-10-1, 42-10-2 |
Public Benefits | AFDC, general assistance Crime victims’ compensation paid before 7/1/93 Occupational disease disablement benefits Unemployment compensation Workers’ compensation | 27-2-21 31-22-15 52-3-37 51-1-37 52-1-52 |
Tools of Trade | $1500 | 42-10-1, 42-10-2 |
Wages | Minimum 75% of earned but unpaid wages; bankruptcy judge may authorize more for low- income debtors | 35-12-7 |
Wild Card | $500 of any personal property $2000 of any property in lieu of homestead | 42-10-1 42-10-10 |
For more information on filing bankruptcy in New Mexico explore New Mexico Bankruptcy Law.
