New Mexico Debt Collection Laws: Time Limits, Garnishment and Your Rights
New Mexico debt rules: statute of limitations, wage garnishment limits, protected bank and home exemptions, judgments, collector rules and how to answer a debt lawsuit.
Quick answers for New Mexico
- Time limit to sue on a written contract
- 6 years for an action on a promissory note or other contract in writing. NMSA 1978, § 37-1-3(A)
- Wage garnishment limit
- Stricter than federal law. Exempt is the greater of 75% of disposable earnings or 40 times the highest applicable federal, state or local minimum hourly wage per week. NMSA 1978, § 35-12-7
- Money protected in a bank account
- Yes. Outside bankruptcy, an individual can protect up to $2,400 in total in bank or investment accounts, plus any money from exempt sources (such as Social Security, veterans', disability, unemployment or public benefits, retirement funds and exempt wages). NMSA 1978, § 42-10-1(A)(14); § 35-12-7(D)
- Answering a debt lawsuit
- In Metropolitan (and magistrate) court, respond to a civil lawsuit within 20 days of being served with the complaint and summons, or a default judgment may be entered. Answer forms are available from the courts. Bernalillo County Metropolitan Court FAQs; Rules 2-302, 3-302 NMRA
Last verified: 2026-10-26
Time limits
| Time limit to sue on a written contract | 6 years for an action on a promissory note or other contract in writing. Source: NMSA 1978, § 37-1-3(A) |
|---|---|
| Time limit for credit cards and open accounts | 4 years for actions on accounts and unwritten contracts. Source: NMSA 1978, § 37-1-4 |
| Can a payment restart the clock? | Yes. A contract claim is revived by any partial or installment payment, or by a written, signed admission that the debt is unpaid or a written new promise to pay. The period then runs from the date of that payment, admission or promise. Source: NMSA 1978, § 37-1-16 |
| How long a judgment lasts | 14 years from the date of the judgment. A judgment revived by a new action or other means still cannot be enforced more than 14 years after the original judgment. Source: NMSA 1978, § 37-1-2 |
If you are sued
| Answering a debt lawsuit | In Metropolitan (and magistrate) court, respond to a civil lawsuit within 20 days of being served with the complaint and summons, or a default judgment may be entered. Answer forms are available from the courts. |
|---|
Garnishment and what creditors can't take
| Wage garnishment limit | Stricter than federal law. Exempt is the greater of 75% of disposable earnings or 40 times the highest applicable federal, state or local minimum hourly wage per week. Exempt wages keep their protection when deposited in a personal bank account if reasonably traceable. Child support garnishments may take up to 50%. Amended by 2023 ch. 104. Source: NMSA 1978, § 35-12-7 |
|---|---|
| Money protected in a bank account | Yes. Outside bankruptcy, an individual can protect up to $2,400 in total in bank or investment accounts, plus any money from exempt sources (such as Social Security, veterans', disability, unemployment or public benefits, retirement funds and exempt wages). This is part of a general $15,000 exemption for personal property not otherwise listed. Rewritten by 2023 ch. 104. |
| Homestead exemption | $150,000 in the person's primary residence, or $300,000 if the person's spouse died within the past two years and could have claimed it. Source: NMSA 1978, § 42-10-9 |
| Vehicle exemption | Motor vehicles up to $10,000 in total value. Set by 2023 ch. 104, which also set household goods at $75,000 and tools of the trade at $15,000. Source: NMSA 1978, § 42-10-1(A)(2) |
| Claiming an exemption | The creditor must give the debtor a notice of the right to claim exemptions, with a complete list of exemptions, or a claim form. To claim an exemption, file a claim of exemption in the court that issued the writ; the time allowed may not be less than 10 days after the writ of execution is filed. Court rules 1-065.1, 2-801, 3-801 and form 4-803 NMRA govern the details; statewide forms: https://nmcourts.gov/forms-files/civil Source: NMSA 1978, § 42-10-13 |
Debt collectors and interest
| Debt collector licensing | Yes. Collection agencies, collection agency managers and repossessors must be licensed under the Collection Agency Regulatory Act, administered by the Financial Institutions Division of the Regulation and Licensing Department. FID: https://www.rld.nm.gov/financial-institutions/ Source: NMSA 1978, § 61-18A-5 |
|---|---|
| Medical debt protections | Yes (Patients' Debt Collection Protection Act, 2021). Medical debt and health care charges may not be pursued through collection actions against patients determined to be indigent, and existing collection actions must stop once a patient is found indigent. Providers may not hire third parties to collect from indigent patients. The Act also requires insurance and assistance screening, billing information and payment receipts. |
| Interest rate limits | Judgments bear 8.75% a year from entry, unless the judgment is on a written instrument with a different rate (then no higher than that rate), or is based on tortious, bad-faith or intentional conduct (15%). The court may allow up to 10% prejudgment interest from service of the complaint. Source: NMSA 1978, § 56-8-4 |
Where to get help in New Mexico
- New Mexico Department of Justice, Consumer Protection; Regulation and Licensing Department, Financial Institutions Division (licenses collection agencies)
- File a complaint or claim
Debt & Collections FAQ
What is the statute of limitations on debt in New Mexico?
6 years for an action on a promissory note or other contract in writing.
How long can a creditor sue on a credit card debt in New Mexico?
4 years for actions on accounts and unwritten contracts.
Does making a payment restart the statute of limitations in New Mexico?
Yes. A contract claim is revived by any partial or installment payment, or by a written, signed admission that the debt is unpaid or a written new promise to pay. The period then runs from the date of that payment, admission or promise.
How long does a court judgment last in New Mexico?
14 years from the date of the judgment. A judgment revived by a new action or other means still cannot be enforced more than 14 years after the original judgment.
How much of my wages can be garnished in New Mexico?
Stricter than federal law. Exempt is the greater of 75% of disposable earnings or 40 times the highest applicable federal, state or local minimum hourly wage per week. Exempt wages keep their protection when deposited in a personal bank account if reasonably traceable. Child support garnishments may take up to 50%.
How much money in a bank account is protected from creditors in New Mexico?
Yes. Outside bankruptcy, an individual can protect up to $2,400 in total in bank or investment accounts, plus any money from exempt sources (such as Social Security, veterans', disability, unemployment or public benefits, retirement funds and exempt wages). This is part of a general $15,000 exemption for personal property not otherwise listed.
What is the homestead exemption in New Mexico?
$150,000 in the person's primary residence, or $300,000 if the person's spouse died within the past two years and could have claimed it.
Can a creditor take my car in New Mexico?
Motor vehicles up to $10,000 in total value.
Do debt collectors need a license in New Mexico?
Yes. Collection agencies, collection agency managers and repossessors must be licensed under the Collection Agency Regulatory Act, administered by the Financial Institutions Division of the Regulation and Licensing Department.
What protections apply to medical debt in New Mexico?
Yes (Patients' Debt Collection Protection Act, 2021). Medical debt and health care charges may not be pursued through collection actions against patients determined to be indigent, and existing collection actions must stop once a patient is found indigent. Providers may not hire third parties to collect from indigent patients. The Act also requires insurance and assistance screening, billing information and payment receipts.
What is the maximum legal interest rate in New Mexico?
Judgments bear 8.75% a year from entry, unless the judgment is on a written instrument with a different rate (then no higher than that rate), or is based on tortious, bad-faith or intentional conduct (15%). The court may allow up to 10% prejudgment interest from service of the complaint.
How do I respond to a debt collection lawsuit in New Mexico?
In Metropolitan (and magistrate) court, respond to a civil lawsuit within 20 days of being served with the complaint and summons, or a default judgment may be entered. Answer forms are available from the courts.
How do I stop a garnishment or claim an exemption in New Mexico?
The creditor must give the debtor a notice of the right to claim exemptions, with a complete list of exemptions, or a claim form. To claim an exemption, file a claim of exemption in the court that issued the writ; the time allowed may not be less than 10 days after the writ of execution is filed.
Debt & Collections in other states
More New Mexico law
- New Mexico tenant rights & landlord-tenant law
- New Mexico small claims court
- New Mexico wills, probate & estates
- New Mexico protective & restraining orders
- New Mexico employment law
- New Mexico unemployment benefits
- New Mexico divorce & family law
- New Mexico expungement & criminal records
- New Mexico traffic tickets & dui
- New Mexico personal injury & wrongful death
- New Mexico workers' compensation
- New Mexico foreclosure & homeowner law
- New Mexico consumer protection
- New Mexico starting an llc & small business
- New Mexico bankruptcy
- New Mexico car insurance & vehicle laws
- New Mexico property tax & homestead exemptions
- New Mexico criminal law
- New Mexico gun laws
- Find a lawyer or free legal help in New Mexico
- All New Mexico law guides
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.