New Mexico Bankruptcy Laws
If you are considering filing for bankruptcy in New Mexico, you will need the services of experienced bankruptcy lawyers who understand New Mexico's bankruptcy laws. At Melwani Law, we regularly help people who are in serious financial trouble by guiding them through the bankruptcy process. If you need bankruptcy lawyers who are knowledgeable of local bankruptcy laws, please call us today.
New Mexico Is a Community Property State
One thing to be aware of is that New Mexico is a community property state, meaning that all property and income acquired during marriage is considered community property. Property held by either spouse prior to marriage is not considered community property. If divorce is the immediate cause of financial difficulties, it will impact your situation. With divorce, this can be an issue in Chapter 13 bankruptcy cases where significant property is more commonly involved.
Protect Your Property
In Chapter 7 bankruptcy cases, court-ordered property sales are uncommon, but sometimes do occur. New Mexico bankruptcy laws provide for exemptions that protect certain types of property from being sold. These include:
- $60,000 from ownership of a home. If jointly owned, both owners are given a $60,000 exemption. If no home is owned, you can receive a $5000 "wild-card" exemption.
- 75% of you earnings cannot be touched by creditors.
- One motor vehicle worth up to $4000.
- Up to $500 of personal property is protected.
- Up to $2500 worth of jewelry is protected.
- Up to $1500 of "tools of the trade" is protected.
- 100% of clothing, furniture, books, medical/health equipment, and income from pensions or retirement funds are protected.
The bankruptcy lawyers at Melwani Law can help you to protect your assets and get through your bankruptcy filing as smoothly and painlessly as possible. If you are facing serious financial difficulties, please call us at 866-501-8500 for a free initial evaluation.