New Mexico Bankruptcy Exemptions
by Going through a bankruptcy is one of the most stressful things you may ever go through, but many people say that going through the process is less arduous than dealing with bill collectors. Of course, there is very little point in going through a bankruptcy if you cannot hold on to the things that are most important to you. This is a quick list of the exemptions allowed by New Mexico law during a bankruptcy (in plain English, this is what a judge can’t make you give up to your creditors).
Going through a bankruptcy is one of the most stressful things you may ever go through, but many people say that going through the process is less arduous than dealing with bill collectors. Of course, there is very little point in going through a bankruptcy if you cannot hold on to the things that are most important to you. This is a quick list of the exemptions allowed by New Mexico law during a bankruptcy (in plain English, this is what a judge can’t make you give up to your creditors).
Homestead Up to $30,000 of your primary residence can be exempted. This means that if you own your home outright, or owe less than $30,000 on all the mortgages, your home cannot be taken from you.
Insurance All life, accident, health, or annuity benefits cannot be taken from you if the beneficiary of those benefits is a New Mexico resident. Also exempt are all life insurance proceeds.
Pensions and Benefits Any pension or retirement benefits cannot be garnished in a bankruptcy. Also exempt is occupational disease disablement benefits, unemployment compensation, and worker’s compensation.
Personal Property All books, furniture, building materials, clothing, co-op association shares, health aids, and any machinery or equipment needed to dig, drill, complete, or operate an oil line, gas well, or pipeline cannot be seized. Also exempt is jewelry up to $2500, motor vehicles up to $4000, and tools of trade up to $1500. Additionally, you may keep an extra $500 of personal property, and an extra $2000 in personal property if you do not have a homestead.
Wages You are allowed to keep the greater of a minimum of 75% of your disposable earnings or 40 times the hourly federal minimum wage. The judge may authorize more on a case by case basis.
This article will be updated periodically as laws change. If you have a question, please ask in the comments section below. Of course, please consult with a bankruptcy attorney if you believe that filing bankruptcy is a good option for you.
Please note that laws vary from state to state. This list was compiled thanks to one of my readers who asked me what he could expect to have to give up during a bankruptcy in New Mexico. If you would like me to compile a similar list for your state, please let me know.
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