New Mexico Bankruptcy Laws and New Mexico Bankruptcy Attorney

What Can I Keep?

You can choose one of two ‘exemption schemes’ in New Mexico Attorney law, whichever best suits your circumstances.

Under the first exemption scheme, from federal New Mexico bankruptcy law, you may keep:

• Your home, including co-op or mobile home, to $18,450
• Life insurance payments for person you depended on, needed for support
• Life insurance policy with loan value, in accrued dividends or interest to $9,850
• Un matured life insurance contract, except credit insurance policy
• Alimony, child support needed for support
• Pensions and Retirement Benefits, ERISA - qualified benefits needed for support
• $475 per item in any household goods up to a total of $9,850
• Health Aids
• Jewelry to $1,225
• Lost earnings payments
• Your motor vehicle to $2,950
• Personal injury compensation payments to $18,450, wrongful death payments, crime victims' compensation, public assistance, social security, unemployment compensation, and veterans' benefits
• Tools of trade up to $1,850
• Wild Card - $925 of any property plus up to $9,250 of any amount of unused homestead exemption

Married couples may double the amount of the federal exemptions.

If you choose the second exemption scheme, under New Mexico bankruptcy law, you may keep:

• Homestead to $30,000
• Real or personal property in lieu of homestead to $2,000
• Any personal property to $500
• Tools of the trade to $1,500
• One motor vehicle to $4,000
• Jewelry to $2,500
• Clothing, furniture, books, medical and health equipment
• Materials furnished for use in construction, alteration or repair of any building or improvement
• Proceeds from pension or retirement fund
• Life, accident, health insurance benefits or annuities
• Life insurance proceeds
• Public assistance
• Retirement benefits for public employees
• Crime victims compensation
• 75% of disposable earnings
• Unemployment compensation
• Workmens compensation
• Occupational disease disablement compensation
• Minimum holdings necessary for membership in cooperative association
• Interest in unincorporated association
• Materials, tools, machinery, equipment or oil and gas supplies furnished for use in oil or gas well or in oil or gas pipeline

The New Mexico bankruptcy law does not wipe out voluntary liens, like mortgages and deeds of trust, or tax liens. So the lender still has the right to foreclose if you do not pay. If you pay, everyone is happy. Remember, the lender does not want the property; it wants you to pay regularly on the loan. Foreclosure is a last resort for the lender if it concludes it can’t get the owed money any other way.

If you still owe money on the car, you can choose to reaffirm the debt to the secured lender. Under the new law, you have to reaffirm your car loan within 45 days after the "341 meeting." You no longer have the option of continuing your car payments without reaffirming the loan. Once the loan is reaffirmed, if you default on your payments and the car is repossessed, you are liable for the repossession deficiency.

You also have the option to redeem the car within 45 days of the "341 meeting" by buying it from the secured creditor in a single payment for its present value.

Planning for filling bankruptcy law

Get quality information before filling the bankruptcy