New Mexico Bankruptcy Laws

New Mexico has one bankruptcy court, the New Mexico Bankruptcy District Court that has three locations: Albuquerque , Las Cruses and Roswell . It serves the entire state of New Mexico . Bankruptcy protection begins after you attend the mandatory pre-bankruptcy counseling session and file your case with the Court. Until that time, creditors can still try to collect on your credit card debt. And, you are not protected from New Mexico foreclosure proceedings.

New Mexico Bankruptcy Exemptions
Exempt property is property that you are allowed to keep in a chapter 7 bankruptcy. State law determines what property is exempt. According to Lawyers.com, you can choose one of two "exemption schemes" in New Mexico : federal bankruptcy laws or New Mexico states.

Under federal bankruptcy laws, you may keep:

• Your home, including co-op or mobile home, to $20,200.
• Life insurance payments for person you depended on, needed for support.
• Life insurance policy with loan value, in accrued dividends or interest to $10,775.
• Unmatured life insurance contract, except credit insurance policy.
• Alimony, child support needed for support.
• Pensions and Retirement Benefits, ERISA - qualified benefits needed for support.
• $525 per item in any household goods up to a total of $10,775.
• Health Aids.
• Jewelry to $1,350.
• Lost earnings payments.
• Your motor vehicle to $3,225.
• Personal injury compensation payments to $20,200, wrongful death payments, crime victims' compensation, public assistance, social security, unemployment compensation, and veterans' benefits.
• Tools of trade up to $20,200.
• Wild Card - $1,075 of any property plus up to $10,125 of any amount of unused homestead exemption.

Married couples may double the amount of the federal exemptions.

Under New Mexico bankruptcy laws, generally 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.
• 50% of wages exempt with respect to child support obligation; 40 times the federal minimum wage or 75% of disposable earnings whichever is greater.
• Unemployment compensation.
• Workmen's 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.

NOTE: These are the major bankruptcy exemptions. Check with your bankruptcy lawyer for a full exemptions list.

New Bankruptcy Law Changes - Outlines major changes you should know about in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), also known as the new bankruptcy laws.

This is important! The new bankruptcy law requires all debtors to fulfill two education requirements: a credit counseling course prior to filing and a financial management course before obtaining a discharge. Failure to complete either of these courses and file the appropriate certificates with the court will prevent a successful bankruptcy. The Chapter 13 Trustee will offer the required courses to Chapter 13 debtors, but Chapter 7 debtors are required to take the courses on their own.

Find a U.S. Trustee Approved Pre-Bankruptcy Counseling Provider and Post-Filing Debtor Education Provider.