Question 1

Which bankruptcy court do I file in for New Mexico?

Accepted Answer

New Mexico has one federal bankruptcy court district: the U.S. Bankruptcy Court for the District of New Mexico (https://www.nmb.uscourts.gov/).

Question 2

What is the bankruptcy means test income limit in New Mexico?

Accepted Answer

Median family income for New Mexico: 1 person $66,235; 2 people $79,574; 3 people $88,041; 4 people $98,602; add $11,100 for each additional person beyond 4. These figures apply to bankruptcy cases filed on or after July 15, 2026.

Question 3

How much home equity is protected in bankruptcy in New Mexico?

Accepted Answer

$150,000 in a home or land the filer owns and uses as a primary residence, or $300,000 if the filer's spouse died within two years before the claim and could have claimed the exemption. A "domicile" can include a mobile home, trailer, RV, outbuilding or similar shelter. The statute has no acreage limit and is to be read liberally in favor of the person claiming it. It applies in bankruptcy but not against properly perfected liens of secured creditors.

Question 4

Can I keep my car in bankruptcy in New Mexico?

Accepted Answer

A filer's total interest in motor vehicles, up to $10,000 in value.

Question 5

Does New Mexico have a wildcard exemption?

Accepted Answer

Up to $15,000 in any personal property not otherwise listed, including money in bank or investment accounts and property worth more than the other exemption limits. The $2,400 cap on bank and investment accounts in this provision applies to lawsuits other than bankruptcy. A resident who does not own a homestead may also exempt $15,000 in real or personal property in lieu of the homestead exemption.

Question 6

Are retirement accounts protected in bankruptcy in New Mexico?

Accepted Answer

New Mexico exempts an interest in or proceeds from a pension, individual retirement account, annuity, profit-sharing plan or any other retirement account; IRAs that qualify under 26 U.S.C. 408 or are similar; and the right to receive payments from stock bonus, pension, profit-sharing, IRA, annuity or similar plans paid because of illness, disability, death or length of service, to the extent reasonably necessary to support the filer and dependents (unless the plan does not qualify under Internal Revenue Code section 401(a), 403(a), 403(b) or 408). Education savings (529) and health savings accounts are also exempt.

Question 7

Are wages protected in bankruptcy in New Mexico?

Accepted Answer

Wages that are exempt under New Mexico's garnishment law are also exempt in bankruptcy. That law protects the greater of 75% of disposable earnings for any pay period or, each week, 40 times the highest applicable federal, state or local minimum hourly wage where the wages were earned (only 50% is protected against child-support garnishment). Exempt wages keep their protection when deposited into a personal bank account if they are reasonably traceable.

Question 8

Can I file bankruptcy without a lawyer in New Mexico?

Accepted Answer

New Mexico has one bankruptcy court (District of New Mexico). Its For Self-Represented section covers understanding bankruptcy, filing for bankruptcy, filing documents, adversary proceedings, proofs of claim and online fee payment. The court runs a Self-Help Center for self-represented filers (Monday-Friday, 8:30 AM-4:00 PM MST, 505-415-7999 option 1, or online chat) at the Pete V. Domenici U.S. Courthouse in Albuquerque, and points to a free monthly consumer debt workshop by the State Bar of New Mexico. Individuals can prepare a Chapter 7 petition online for free with the court's eSR system; the case is not filed until the clerk receives the filing fee (or an installment or waiver application), the signed Declaration by Self-Represented Individual, the Statement of Social Security Number, the credit counseling certificate (or waiver motion) and a Certification/Statement Regarding Marital Status. Corporations and partnerships must have a lawyer (NM LBR 1074-1).

Homestead exemption	$150,000 in a home or land the filer owns and uses as a primary residence, or $300,000 if the filer's spouse died within two years before the claim and could have claimed the exemption. A "domicile" can include a mobile home, trailer, RV, outbuilding or similar shelter. The statute has no acreage limit and is to be read liberally in favor of the person claiming it. It applies in bankruptcy but not against properly perfected liens of secured creditors. Amounts set by Laws 2023, ch. 104. NMSA 1978, § 42-10-14 says this dollar amount is to be adjusted for inflation on July 1, 2025 and every two years after that, with the adjustments published by the Administrative Office of the Courts; the published adjusted figure was not found, so the amount shown is the statute's figure. Source: NMSA 1978, § 42-10-9
Car exemption	A filer's total interest in motor vehicles, up to $10,000 in value. Property is valued at fair market value (§ 42-10-1(C)). NMSA 1978, § 42-10-14 says this dollar amount is to be adjusted for inflation on July 1, 2025 and every two years after that, with the adjustments published by the Administrative Office of the Courts; the published adjusted figure was not found, so the amount shown is the statute's figure. Source: NMSA 1978, § 42-10-1(A)(2)
Wildcard exemption	Up to $15,000 in any personal property not otherwise listed, including money in bank or investment accounts and property worth more than the other exemption limits. The $2,400 cap on bank and investment accounts in this provision applies to lawsuits other than bankruptcy. A resident who does not own a homestead may also exempt $15,000 in real or personal property in lieu of the homestead exemption. NMSA 1978, § 42-10-14 says this dollar amount is to be adjusted for inflation on July 1, 2025 and every two years after that, with the adjustments published by the Administrative Office of the Courts; the published adjusted figure was not found, so the amount shown is the statute's figure. Source: NMSA 1978, § 42-10-1(A)(14); § 42-10-10
Retirement accounts	New Mexico exempts an interest in or proceeds from a pension, individual retirement account, annuity, profit-sharing plan or any other retirement account; IRAs that qualify under 26 U.S.C. 408 or are similar; and the right to receive payments from stock bonus, pension, profit-sharing, IRA, annuity or similar plans paid because of illness, disability, death or length of service, to the extent reasonably necessary to support the filer and dependents (unless the plan does not qualify under Internal Revenue Code section 401(a), 403(a), 403(b) or 408). Education savings (529) and health savings accounts are also exempt. Federal law (11 U.S.C. 522(b)(3)(C)) separately protects tax-exempt retirement funds in bankruptcy. Source: NMSA 1978, § 42-10-1(A)(6)(f), (10)-(13)
Wages	Wages that are exempt under New Mexico's garnishment law are also exempt in bankruptcy. That law protects the greater of 75% of disposable earnings for any pay period or, each week, 40 times the highest applicable federal, state or local minimum hourly wage where the wages were earned (only 50% is protected against child-support garnishment). Exempt wages keep their protection when deposited into a personal bank account if they are reasonably traceable. Source: NMSA 1978, § 42-10-1(A)(8); § 35-12-7

Filing Bankruptcy in New Mexico: Means Test, Exemptions and Courts

Quick answers for New Mexico

Qualifying for Chapter 7

What you can keep (exemptions)

Where and how to file

Bankruptcy FAQ

More New Mexico law