Bankruptcy exemptions in New Mexico: what you can keep

$150,000 in your primary residence. $300,000 if your spouse died within the two years before you claim it and could have claimed it. The home can be a house, mobile home, trailer, RV, outbuilding or similar shelter used as your main home. If you do not own a homestead, you get $15,000 in any real or personal property instead.

The law says it must be read in favor of the person claiming it. It does not stop properly perfected secured liens, such as a mortgage. By law, all New Mexico exemption dollar amounts are adjusted for inflation every two years starting July 1, 2025, and the Administrative Office of the Courts publishes the adjusted amounts; an adjustment does not apply to a case filed before it.

Law: NMSA 1978 42-10-9, 42-10-10, 42-10-14 (Laws 2023, ch. 104, SB 216)

$31,575

Law: 11 U.S.C. 522(d)(1)

$10,000 total interest in motor vehicles

Law: NMSA 1978 42-10-1(A)(2)

$5,025

Law: 11 U.S.C. 522(d)(2)

$75,000 total in household goods and furnishings. This includes furniture, appliances, clothing and personal effects, electronics (TVs, phones, computers), prescribed health aids, books and two firearms; within it, musical instruments up to $4,000 and toys, games, sports and hobby gear up to $2,500. Separately: a wedding band and engagement ring plus up to $5,000 in other jewelry, and up to $2,500 in artwork by you or a relative.

Law: NMSA 1978 42-10-1(A)(1), (3), (4), (B)

Household goods: $800 per item, $16,850 total

Jewelry for personal or family use: $2,125

Law: 11 U.S.C. 522(d)(3); 11 U.S.C. 522(d)(4)

$15,000 in any personal property not otherwise covered, including bank and investment accounts or the value of property above the other limits. Outside bankruptcy, a bank account is protected only up to $2,400 plus money from exempt sources.

Law: NMSA 1978 42-10-1(A)(14)

$1,675 plus up to $15,800 of any unused part of the (d)(1) homestead amount

Law: 11 U.S.C. 522(d)(5)

$15,000 total in tools, equipment, professional books, instruments, inventory, supplies and materials reasonably needed for your or your spouse's trade, profession or business

Law: NMSA 1978 42-10-1(A)(5)

$3,175

Law: 11 U.S.C. 522(d)(6)

The greater of 75% of your disposable earnings, or 40 times the highest applicable federal, state or local minimum hourly wage per week, is exempt. For child support, 50% is exempt. Exempt wages stay exempt in your bank account if they can be traced.

Law: NMSA 1978 35-12-7; NMSA 42-10-1(A)(8)

Pensions, IRAs, annuities, profit-sharing plans and other retirement accounts are exempt. 529 education savings accounts and health savings accounts are also exempt.

Law: NMSA 1978 42-10-1(A)(6)(f), (10)-(13)

No dollar limit (IRAs are capped under 522(n))

Money in traditional and Roth IRAs is protected up to $1,711,975 in total.

Law: 11 U.S.C. 522(d)(12); 11 U.S.C. 522(n); 90 FR 8941

Your right to receive Social Security, veterans' benefits, disability, illness, unemployment and workers' compensation benefits, and public benefits such as Medicaid, Medicare and food stamps is exempt. Unemployment benefits you have received are also exempt from debt collection (with exceptions for child support, IRS levies and food stamp overpayments).

Law: NMSA 1978 42-10-1(A)(6)(a)-(d); NMSA 51-1-37

Your right to receive Social Security, unemployment, public assistance, veterans' and disability benefits; alimony and support you reasonably need; and certain pension or annuity payments you reasonably need: No dollar limit (some only as much as you reasonably need)

Your right to certain payments: crime victim awards, wrongful-death and life-insurance payments for someone you depended on, personal bodily injury payments (not pain and suffering or actual money losses), and payments for lost future earnings: Crime-victim awards: no limit. Personal injury payment: up to $31,575. Others: as much as you reasonably need

Law: 11 U.S.C. 522(d)(10); 11 U.S.C. 522(d)(11)

• Refundable federal and state tax credits (for example, earned income or child tax credits) are exempt. NMSA 1978 42-10-1(A)(7)
• Alimony and support you receive are exempt to the extent reasonably necessary to support you and your dependents. NMSA 1978 42-10-1(A)(6)(e)
• Stimulus payments are exempt. NMSA 1978 42-10-1(A)(9)
• Benevolent association benefits up to $50,000 paid to a deceased member's family are exempt.

Law: NMSA 1978 42-10-4

An unmatured life insurance policy you own (not credit life insurance): No dollar limit

Cash value of life insurance: $16,850

Health aids prescribed by a professional for you or a dependent: No dollar limit

Law: 11 U.S.C. 522(d)(7); 11 U.S.C. 522(d)(8); 11 U.S.C. 522(d)(9)