New Mexico Bankruptcy Exemptions
Common mistakes declaring New Mexico homestead exemptions under state law
The State of New Mexico bankruptcy exemptions are a precarious balance between below average state salaries and above average home prices. In response, the state Property Code allows re3sidents to claim either the state homestead equity allowance of $30,000, or the Federal allowance of $18,500. In many states, the Federal exemption list is more favorable, but so in New Mexico. The Property Code provides more beneficial options in most circumstances, and further, also exempts many forms of pensions and retirement accounts.
Common mistakes when claiming exemptions
The number 1 mistake made is the failure to disclose assets, which is also one of the most costly mistakes any made by debtors. With even the best intentions and committing a good faith error, creditors remain quick to allege fraud and seek dismissal. Many ordinary household items have nominal resale value, and are therefore ignored by most interested parties. However, the omission of real estate, financial accounts, deposits, and cash equivalents quickly draws attention from the court and may result in sanctions.