In bankruptcy, a homestead exemption protects equity in your home. Here, you'll find specific information about the homestead exemption in New Mexico. For general information about how the homestead exemption works in both Chapter 7 and Chapter 13 bankruptcy, read The Homestead Exemption in Bankruptcy. For more bankruptcy information, read How To File Bankruptcy in New Mexico.
New Mexico lets filers use either the federal exemption system or New Mexico's state exemption system, so you'll have two homestead amounts to choose between. However, you can't mix exemptions from both lists, so you'll want to select the system that will protect your most important assets.
To help you make an informed choice, we've listed both exemption amounts below. We've also included links to more complete federal and state exemption lists so you'll have an easier time deciding which set will work best for you.
If you're married, keep in mind that spouses can double some exemption amounts, but not all. Find out about other filing considerations for spouses.
Federal Homestead Exemption |
New Mexico Homestead Exemption |
|
Homestead exemption |
$27,900 |
$60,000 |
Can spouses who file a joint bankruptcy double the exemption? |
$55,800 is available to spouses who co-own property. |
$120,000 is available to spouses who co-own property. |
Homestead exemption law |
11 U.S.C. § 522(d)(1) |
N.M. Stat. Ann. § 42-10-9 |
Other information |
Amounts adjust on April 1, 2025. |
Amounts adjust periodically. |
Compare other federal and state exemptions. |
In New Mexico, the homestead exemption applies to the residential dwelling and the land. If the homeowner does not own the land, the homeowner must be leasing or purchasing the land.
You can file for bankruptcy in New Mexico after living there for more than 180 days. However, you must live in New Mexico much longer before using New Mexico exemptions, at least 730 days before filing, to be exact. Otherwise, you'd use the previous state's exemptions.
But suppose you lived in multiple states during the two years before filing for bankruptcy. In that case, you'd use the exemptions of the state you lived in for most of the 180 days before the two-year period immediately preceding your filing. (11 U.S.C. § 522(b)(3)(A).) Learn more about filing for bankruptcy after moving to a new state.
You'll find New Mexico's homestead exemption in the New Mexico Statutes Annotated at § 42-10-9 in the New Mexico's online law library and on the New Mexico Compilation Commission website. Learn about finding state statutes in Laws and Legal Research.
We've covered some of the most basic rules you'll encounter when protecting your home in bankruptcy. However, you'll also need to meet other timing and exemption requirements to prevent losing your home. Find out more about keeping your home in Chapter 7 or Chapter 13 or consult a bankruptcy lawyer.
Did you know Nolo has made the law easy for over fifty years? It's true, and we want to ensure you find what you need. Below you'll find more articles explaining how bankruptcy works. And don't forget that our bankruptcy homepage is the best place to start if you have other questions!
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We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.