New Mexico Bankruptcy Laws & Property Exemptions
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New Mexico Bankruptcy Laws

What to Consider When Filing Bankruptcy in New Mexico

Having an understanding of the bankruptcy process may allow people to make an informed decision about how to best fight back against debt.

For an overview of how Chapter 7 and Chapter 13 bankruptcy laws in New Mexico may impact your debt, read on.

If you’ve already decided you want to file bankruptcy, or have specific questions for a local bankruptcy attorney, complete the free case review form on this page and we’ll connect you with a sponsoring bankruptcy lawyer near you in New Mexico.

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New Mexico Bankruptcy Law

At your first meeting with your New Mexico bankruptcy lawyer, he or she will likely give you details about the different ways Chapter 7 and Chapter 13 bankruptcy may affect your debt.

Also during this meeting, your lawyer may ask you for some information about your assets and debts, or have you fill out an intake sheet to provide specific information about your finances.

Bankruptcy laws are designed to provide relief and protection to individuals struggling with debt. Learn how bankruptcy laws can help you by speaking with a local bankruptcy lawyer.

Your answers will help you and your bankruptcy lawyer help you determine whether Chapter 7 or Chapter 13 bankruptcy can best help you reduce your debt.

Chapter 7 bankruptcy is often an option for people facing high amounts of credit card debt and debt stemming from medical bills or payday loans. This type of debt is classified as “unsecured” and may be entirely discharged during Chapter 7 bankruptcy.

Chapter 7 bankruptcy also offers some property protection in the form of exemptions. Although the majority of Chapter 7 bankruptcy cases do not include a sale of property, some cases do. However, the state of New Mexico outlines specific property protections.

Anything that falls under the state’s exemptions is safe from liquidation sale. It is important for debtors who are considering Chapter 7 bankruptcy discuss bankruptcy exemptions with a New Mexico bankruptcy lawyer to find our what property may be exempt from liquidation.


  • $60,000. If two people own the home, each joint owner is entitled to a $60,000 exemption. Individuals who cannot claim a homestead exemption get an additional $5,000 “wild card” exemption.


  • 75 percent of earnings.


  • One motor vehicle worth up to $4,000.

Personal Property

  • Up to $500 of personal property.
  • Up to $1,500 for tools of the trade.
  • Up to $2,500 for jewelry.
  • 100 percent of clothing, furniture, books, medical-health equipment and any interest or proceeds from a pension or retirement fund.

Chapter 13 bankruptcy is often called "reorganization." Many people who file Chapter 13 bankruptcy own lots of property they want to keep, such as multiple cars, homes or large tracts of land. Under Chapter 13 protections, you may be able to keep most, if not all, of your possessions.

During Chapter 13 bankruptcy bankruptcy cases, your debts will be consolidated and ordered. Instead of paying them each of one by one, you will make payments to a bankruptcy trustee who will handle your debt. During this repayment period, which typically lasts 3-5 years, you should be protected from creditor harassment, foreclosure and repossession.

Talk to a New Mexico Bankruptcy Lawyer Today

Many people who consider filing bankruptcy in New Mexico may feel overwhelmed by the complexity of the state’s bankruptcy laws.

In order to resolve any confusion about these laws, a New Mexico bankruptcy lawyer can take you through the ins and outs of filing and clearly explain how the laws apply to you. When you meet with your bankruptcy lawyer, you also can take the opportunity to ask any questions you may have about your case.

It’s easy to get in touch with a local bankruptcy lawyer. Simply fill out the free case review form on this page or give us a call at 877-349-1309, and we’ll connect you with a sponsoring New Mexico bankruptcy lawyer near you immediately.

Note: Keep in mind all laws are complex. If you need legal advice or want to fully understand how these laws affect you, please speak with a local attorney.

Laws may have changed since our last update. For the latest information on your state's bankruptcy laws, speak to a local bankruptcy lawyer.

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