New Mexico Bankruptcy Exemptions — What You Keep
What property you can protect when filing for bankruptcy in New Mexico — homestead, personal property, vehicle, wage, and retirement exemptions.
New Mexico's exemption system
New Mexico requires use of state exemptions only — federal bankruptcy exemptions under §11 U.S.C. § 522(d) are not available. This means the specific New Mexico exemption amounts below control what you can protect.
Key New Mexico exemptions
Homestead §42-10-9
$150,000 in equity ($300,000 if spouse died within 2 years). This protects equity in your primary residence — if your home equity is within this limit, you keep the house in bankruptcy.
Personal property §42-10-1
$75,000 aggregate in household goods and personal effects. This covers household goods, furnishings, clothing, and everyday personal items.
Vehicle §42-10-1
$10,000 in equity. This protects equity in your car — meaning the value of the vehicle minus what you owe on it.
Wages §35-12-7
75% of disposable earnings (or amount exceeding 40× state minimum wage). This applies to wages already earned but not yet paid at the time of filing.
Wildcard §42-10-1
$5,000 (any property not covered by other exemptions). A wildcard exemption can be applied to any property not fully covered by other exemptions.
Retirement accounts §42-10-1(C)
ERISA-qualified plans and IRAs are exempt; state retirement funds also exempt. Retirement accounts receive strong protection in bankruptcy — both under state law and federal law §29 U.S.C. § 1056 (ERISA).
Tools of trade §42-10-1
$5,000 in tools, materials, and equipment of trade. This protects the equipment you need to earn a living.
New Mexico exemption comparison
| Homestead | Personal property | Wildcard | |
|---|---|---|---|
| What it protects | Equity in your primary residence §11 U.S.C. § 522 | Household goods, furnishings, clothing §11 U.S.C. § 522 | Any property not covered by other exemptions §11 U.S.C. § 522 |
| New Mexico limit | $150,000 in equity ($300,000 if spouse died within 2 years) §42-10-9 | $75,000 aggregate in household goods and personal effects §42-10-1 | $5,000 (any property not covered by other exemptions) §42-10-1 |
| Key limitation | Primary residence only — not investment property §11 U.S.C. § 522 | Individual item and aggregate caps may apply §11 U.S.C. § 522 | Total cap across all wildcard-claimed property §11 U.S.C. § 522 |
| Strategic value | Can be the largest exemption | Protects everyday necessities | Fills gaps left by specific exemptions |
How exemptions affect chapter choice
- In Chapter 7, non-exempt property can be liquidated by the trustee. High exemptions mean you keep more.
- In Chapter 13, the "best interests of creditors" test means your plan must pay unsecured creditors at least what they would have received if non-exempt assets were liquidated in Chapter 7. Higher exemptions can reduce your required plan payment.
Common exemption planning considerations
- Is your home equity within the homestead limit, or does it exceed the cap?
- Do you have a vehicle loan that reduces your equity below the exemption?
- Are there assets that could be reclassified or converted to exempt form before filing?
- Would waiting to file change the exemption calculation (e.g., recent large deposit, bonus, tax refund)?
Ready to Talk to a Lawyer?
Submit a short intake form and a participating New Mexico attorney who handles this type of matter may reach out to you. No commitment required.
Frequently Asked Questions
General answers to common questions. Specific outcomes depend on your facts and timing.
If you have a deadline, court notice, or upcoming hearing, mention it when requesting assistance so timing can be evaluated promptly.
Related guides
- $150,000 in equity ($300,000 if spouse died within 2 years)
- $75,000 aggregate in household goods and personal effects
- 75% of disposable earnings (or amount exceeding 40× state minimum wage)