Can Social Security be garnished?

Generally no. Social Security, SSI, veterans' benefits, and most federal benefits are exempt from garnishment for consumer debts. Exceptions apply for federal taxes, child support, alimony, and federal student loans.

What is the homestead exemption in New Mexico?

New Mexico protects up to $150,000 ($300,000 if spouse died within 2 years); CPI-adjusted every 2 years of equity in your primary residence from creditor claims [§ 42-10-9]. This means a judgment creditor generally cannot force the sale of your home unless your equity exceeds the exemption amount.

Can I stop a garnishment?

Yes. You can file a claim of exemption with the court if the garnishment exceeds legal limits, if the income is exempt (Social Security, etc.), or if the garnishment causes extreme hardship. You may also be able to negotiate a settlement or consider bankruptcy, which provides an automatic stay.

Topic guideUpdated 2026-02-27

New Mexico Wage Garnishment — Limits & Exemptions

Q: How much of my wages can be garnished in New Mexico?

New Mexico limits garnishment to 25% of disposable earnings or amount exceeding 40x the highest applicable minimum wage, whichever is less% of disposable earnings [§ 35-12-7], which is more protective than the federal 25% limit.

Wage garnishment limits, homestead exemptions, head-of-household protections, and how to challenge a garnishment in New Mexico.

Wage garnishment is a court order requiring your employer to withhold a portion of your earnings and send it to a creditor. In New Mexico, garnishment is limited by both federal and state law §35-12-7.

New Mexico garnishment limits

New Mexico provides greater protection than federal law.

Maximum garnishment: 25% of disposable earnings or amount exceeding 40x the highest applicable minimum wage, whichever is less% of disposable earnings §35-12-7

Federal vs. New Mexico limits

	\| Federal	New Mexico
Maximum garnishment	25% of disposable earnings §15 U.S.C. 1673	25% of disposable earnings or amount exceeding 40x the highest applicable minimum wage, whichever is less%
Minimum wage floor	30x federal minimum wage §15 U.S.C. 1673	Higher (more protective)
Which applies	Whichever protects more of your wages	—

What is exempt from garnishment

Not all income can be garnished. Federal law §15 U.S.C. 1673 and New Mexico law protect:

Social Security benefits (with limited exceptions for taxes and child support)
Supplemental Security Income (SSI)
Veterans' benefits
Public assistance / welfare payments
Workers' compensation benefits
Retirement and pension income (varies by source)

How to challenge a garnishment

Receive the garnishment notice

Your employer will notify you when they receive a garnishment order.

File a claim of exemption

If your income is exempt or the garnishment exceeds legal limits, you can file a claim of exemption with the court.

Request a hearing

The court will schedule a hearing where you can present evidence that the garnishment should be reduced or eliminated.

Homestead exemption

If you own a home in New Mexico, the Homestead exemption protects up to $150,000 ($300,000 if spouse died within 2 years); CPI-adjusted every 2 years of equity from creditor claims §42-10-9.

⚠Garnishment begins automatically once the creditor obtains a court order. If you believe the garnishment is improper or takes too much of your pay, you must act quickly to file a claim of exemption.

✓If you are struggling with a garnishment, explore whether the debt can be settled, whether bankruptcy would eliminate the underlying judgment, or whether you qualify for a reduction based on hardship.

Prepare for Your Consultation

Quick checklist (Debt Collection Defense)

Gather these before your first consultation.

All collection letters

(dates, amounts, collector names)

Account statements

(original creditor records)

Communication log

(calls, texts, voicemails)

General preparation tips only. Specific needs depend on your state and debt type.

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