The New Mexico Homestead Exemption

Learn how the New Mexico homestead exemption can protect your home equity from creditors in a bankruptcy case.

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In bankruptcy, a homestead exemption protects equity in your home. Here you’ll find specific information about the homestead exemption in New Mexico.

For information about how the homestead exemption works in both Chapter 7 and Chapter 13 bankruptcy, see The Homestead Exemption in Bankruptcy. For more articles on exemptions, see our Bankruptcy Exemptions area.

The New Mexico Homestead Exemption Amount

Under the New Mexico exemption system, homeowners may exempt up to $60,000 of their home or other property covered by the homestead exemption. The exemption includes the dwelling and the land upon which the dwelling is situated, unless the homeowner does not own the land - then, the homeowner must be leasing or in the process of purchasing the land.

Doubling for Married Couples

In New Mexico, married couples who own real property together and who file bankruptcy together can double the homestead exemption, which increases the exemption to $120,000.

The Scope of the New Mexico Homestead Exemption

In New Mexico, the homestead exemption applies to real property, including a dwelling and the land upon which the dwelling is situated.

Can You Use the Federal Bankruptcy Exemptions in New Mexico?

In New Mexico, you can use either the state exemption system or the federal bankruptcy exemption system (but you can’t pick and choose different exemptions from each system – you have to use all state exemptions or all federal exemptions.)

The federal bankruptcy homestead exemption amount is $22,975. (This amount changes every three years. For the most recent figure, see The Federal Bankruptcy Exemptions.) The exemption may be used for homes, condos, co-ops, mobile homes, and burial plots. Married couples may double this exemption. You can find the federal bankruptcy homestead exemption at 11 U.S.C. §522(d)(1) and (5).

(To learn more about which state exemptions apply to you, see Which Exemptions Can You Use in Bankruptcy?)

Homestead Declarations

In New Mexico, the homestead exemption is automatic – you don’t have to file a homestead declaration in order to claim the homestead exemption in bankruptcy.

Finding the New Mexico Homestead Exemption Statute

New Mexico’s homestead exemption is found in the New Mexico state statutes at N.M. Stat. Ann. 42-10-9. To learn how to find state statutes, check out Nolo’s Laws and Legal Research area.

by: , Contributing Author

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