New Mexico Steps Up to Support Individuals in Bankruptcy: A Fresh Start

Category: Bankruptcy

Facing financial difficulties and considering bankruptcy can be overwhelming. But here’s some good news: New Mexico has recently taken significant steps to strengthen protections for individuals in this situation. These changes aim to provide a safety net and help those struggling to navigate the complexities of bankruptcy. At Davis Miles McGuire Gardner, PLLC, our experienced bankruptcy lawyers are here to guide you through the process and ensure your rights are protected.

Let’s take a closer look at New Mexico’s recent bankruptcy protections:

Homestead Exemption: We all deserve a chance to rebuild our financial lives, and New Mexico recognizes that. The state has expanded the homestead exemption, increasing the protection for homeowners. Previously, individuals could safeguard up to $60,000 or $120,000 for spouses of their home equity from creditors. Now, under the new law, that protection has been raised to $150,000 and $300,000 combined for spouses. This means more of your primary residence can be shielded during bankruptcy proceedings, providing greater security and peace of mind.

Limits on Wage Garnishment: New Mexico has also taken action to limit wage garnishment for those facing financial hardship. The new law allows an automatic shield of $2,400 in bank accounts and allows the highest minimum wage for each locality or the federal minimum wage, whichever is greater.  This change ensures that you have a better chance of meeting your basic needs and allows you to allocate a larger portion of your income to essential expenses.

Increased Motor Vehicle Exemption: In recognition of the importance of reliable transportation, New Mexico has raised the exemption limit for motor vehicles. Under the new law, you can retain up to $10,000 in motor vehicles. This is a significant increase compared to the previous limit of one motor vehicle worth up to $4,000.

Wild card – New Mexico residents can claim up to $15,000 each (spouses can double this amount) under the wild card exemption.  This can be applied to whatever is not otherwise protected under other exemptions.  For example, a vehicle worth $20,000 can use $10,000 from the vehicle and another $10,000 from the wild card to fully exempt the vehicle.

When facing bankruptcy, it’s crucial to have expert guidance. At Davis Miles McGuire Gardner, PLLC, our team of skilled bankruptcy lawyers is ready to assist you in regaining control of your financial situation. We understand that bankruptcy is complex and sensitive, and we approach it with compassion and personalized attention. Our attorneys will evaluate your unique circumstances, explain the available options, and develop a comprehensive strategy tailored to your needs.

These recent changes in New Mexico’s bankruptcy laws offer enhanced protections for individuals burdened by overwhelming debt. If you’re considering bankruptcy, don’t navigate the process alone. Seek legal representation from knowledgeable bankruptcy lawyers who can guide you and advocate for your rights.

At Davis Miles McGuire Gardner, PLLC, we are committed to delivering high-quality legal services and providing the support you need during this challenging time. Contact our experienced lawyer, Ron Holmes, today at (505) 948-5050 to schedule a consultation. Let us help you find your fresh start.