Bankruptcy Exemptions in New Mexico
What property you can keep in bankruptcy in New Mexico: homestead, vehicle, wildcard and retirement exemptions, and whether you can choose the federal exemptions.
Short 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. NMSA 1978, § 42-10-9
| 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 |
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| 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. |
| 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. |
| 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. |
More New Mexico bankruptcy
FAQ
How much home equity is protected in bankruptcy in New Mexico?
$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.
Can I keep my car in bankruptcy in New Mexico?
A filer's total interest in motor vehicles, up to $10,000 in value.
Does New Mexico have a 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.
Are retirement accounts protected in bankruptcy in New Mexico?
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.
Are wages protected in bankruptcy in New Mexico?
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.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.