New Mexico Bankruptcy Exemptions

New Mexico bankruptcy exemptions have been designed with an objective to allow debtors who go bankrupt to keep some of their properties (or its cash value up to a certain limit) so that they can give their financial life a fresh start. The debtors residing in this state also have an option to replace the state-specified exemptions with the federal set of exemptions. However, it is important to note that the federal supplemental exemptions can be used additionally only if you are using the exemptions offered by the state of New Mexico. Following is a brief rundown on what kind of assets and properties are safe in bankruptcy and to what extent.


- Up to two thousand dollars of unused portion of homestead exemptions can be used to exempt any other personal or real property
- Besides that, an addition up to $500 of exemptions can also be availed for any personal property


Forty times the minimum hourly wage under federal laws or minimum seventy-five percent of unpaid but earned weekly wages, whichever is higher in value. Low-income debtors may sometimes be allowed to have a higher exemption in this category.

Tools Of Trade

Up to $1500 can be exempted for any tools of trade

Public Benefits

100% New Mexico bankruptcy exemptions can be availed for the following five types of pension benefits.

- Occupational disease disablement benefits
- Workers’ compensation benefits
- Unemployment compensation benefits
- Crime victims’ compensation benefits
- General assistance benefits

Personal Property

- Any materials, tools, or machinery that you reasonably needed to repair, operate, complete, drill a pipeline, a gas well, or an oil line.
- If you have shares in a cooperative association, you can get the same exempted up to the extent that is you need to retain membership.
- New Mexico bankruptcy exemptions can be availed in full value for certain types of personal properties that include Building materials, Clothing, Medical-health equipment, and books and furniture.


As per the bankruptcy laws applicable in the state of New Mexico, there are also provisions for exempting certain types of pension benefits. Debtors can save 100% of retirement benefits and pensions, public school employee pensions, and federal pension.


Certain exemptions are allowed in the miscellaneous category as well. You have the right to keep any property that belongs to a business partnership (where you are one of the partners); there is no maximum limit. Besides that, you can also exempt all ownership interests in unincorporated association (if any).


Provisions have also been made for the New Mexico bankruptcy exemptions for certain types of insurance policy or proceeds. For example, 100% can be exempted in benefits from a fraternal benefit society and life insurance proceeds. In addition to that, up to $5000 is exemptible from the benefits received from a benevolent association. Furthermore, if the beneficiary is a New Mexico resident, 100% can be exempted from annuity, health, accident, or life cash / withdrawals / benefits value.


Homestead properties are exemptible up to a maximum equity value of $30000.

However, it is very important for you to keep in mind that every bankruptcy case is a different one, as the court has to take a wide array of different factors into consideration in order to determine the exact level of exemptions. The above is just a general overview about New Mexico bankruptcy exemptions. For a more accurate evaluation depending upon the specific factors involved in your case, you are advised to consult an expert New Mexico bankruptcy attorney.

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One Response to “New Mexico Bankruptcy Exemptions”

  1. Martin says:

    Very well defined. The rules in New Mexico for economic failure have been made in such a way that they help creditors to keep some of their fixed assets, so that they can live a comfortable life. Central exclusions can be availed only if you are using the New Mexico exclusions. Your own property is under exclusions. Monthly emoluments are under exemptions. Different business gears are excluded. Cent percent exclusions can be taken in some public benefit schemes. The property in your own name can be taken under exemption .The material used in building and the stationary, exercise equipments are exempted cent percent. Life time annuity is under exclusion. If you are holding any property in the name or in association with your business that is under exclusion. Amount invested in different life insurance policies can be granted exemptions.. Medical policies including accidental benefits are exemption able hundred percent. Farmhouse properties are under exemption. You can get a general knowledge about all these laws through above writing, for any further clarifications you can contact higher authority

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