New Mexico Bankruptcy Laws

Protects up to $150,000 in equity in the debtor's primary residence. If the debtor's spouse died within 2 years of the claim date, the exemption increases to $300,000. Exempt from attachment, execution, foreclosure, and bankruptcy proceedings. Amounts are subject to inflation adjustment every odd-numbered year starting July 1, 2025.

Any resident who does not own a homestead may exempt $15,000 in real or personal property in lieu of the homestead exemption.

Protects up to $10,000 in aggregate interest in motor vehicles.

Household goods and furnishings: $75,000 aggregate. Jewelry (wedding/engagement rings plus additional): $5,000 aggregate. These amounts are subject to inflation adjustments.

New Mexico allows debtors to choose either state exemptions or the federal bankruptcy exemption set (but not both). The federal wildcard exemption is approximately $1,675 plus up to $15,800 of unused homestead exemption (total ~$17,475). Choosing between state and federal depends on the debtor's specific asset profile.

Life insurance proceeds, health/disability insurance, workers' compensation benefits, unemployment compensation, and public assistance benefits are exempt from bankruptcy proceedings.