New Mexico Bankruptcy

When individuals or businesses are unable to meet their financial obligations, they can file for bankruptcy to seek relief from some or all of their debts. You must understand that bankruptcy in New Mexico requires navigating both federal bankruptcy law and state exemption rules. In New Mexico, debtors may choose to use either theNew Mexico exemption list or the federal exemption list (but cannot mix items from both).

The exemption selection will affect what property you can keep (such as home equity, a car, or personal property) and what you must repay. You are eligible for New Mexico exemptions if you have resided in the state for at least 730 days before filing. Otherwise, you may be required to use another state’s exemptions.

How to File Bankruptcy in New Mexico

This is a step-by-step practical documentation for individuals interested in filing for bankruptcy in New Mexico. They must take a credit-counseling course (approved by the court) within 180 days before filing. Collect tax returns, income records (last six months or more), bank statements, lists of assets and debts, titles, deeds, and any lawsuits.

Decide which type of bankruptcy (chapter) is appropriate for your situation. Then, select either New Mexico or federal exemptions.File your petition, schedules, and other supporting forms with the District of New Mexico.Pay the filing fee (or request installment/waiver).

Attend the 341 meeting of creditors. You must attend the meeting with a valid ID and required paperwork while preparing to answer any question under oath. Complete debtor‐education course and comply with all trustee and court notices until discharge or until plan completion/confirmation.

New Mexico Bankruptcy Types: Chapter 7, Chapter 13, & Chapter 11

Here’s a brief explanation of each type and how the exemption choice affects them.

Chapter 7 (Liquidation)

This bankruptcy type is well-suited for individuals with limited income and unsecured debt. A trustee may sell non-exempt assets to repay creditors. The debtor’s choice of exemptions under their chosen list will determine what assets they can keep.

Chapter 13 (Repayment Plan)

This chapter may enable individuals with regular income to repay their debts over 3–5 years rather than liquidating assets. The repayment amount you must pay should reflect the value of non-exempt equity under your chosen exemption scheme.

Chapter 11 (Reorganization)

Businesses or individuals with large/complex debt usually adopt this method. It allows them to restructure their debts under a court‐approved plan. The exemption choice still affects which personal‐property protection applies if you are an individual debtor.

Step in Filing for Bankruptcy in New Mexico

You may take the following steps when you file for bankruptcy in New Mexico.

• Complete a credit‐counseling course.
• Gather financial records, including income, taxes, assets, debts, and other required documents.
• Choose a chapter and select the exemption scheme (state or federal)
• File your petition and schedules in the District of New Mexico
• Pay the filing fee or request relief
• Attend the 341 meeting of creditors
• No later than seven days before the 341 meeting of creditors, you must deliver all required documents to your case trustee.
• You must comply with court communications until discharge or plan completion.
• Complete your debtor‐education course from an approved provider

New Mexico Bankruptcy Court & Access to Records

Cases are handled by the United States Bankruptcy Court for the District of New Mexico. These cases are public records unless sealed or restricted by court order.

Court Locations

The District of New Mexico: The main headquarters of the U.S. Bankruptcy Court for the District of New Mexico is located in Albuquerque. The court provides a self-help resources page on its website. The court is located at:

Record Access

Most court documents filed after December 1, 2003, are available electronically through the national PACER service. You may log in to the PACER system to access the bankruptcy case files. You must pay a $0.10 fee to users for searching and viewing court case files.

You may also request copies in person at the Customer Service Counter of the Clerk's Office. The Clerk's Office will contact you regarding the amount due. After paying the required fee, the clerk will fulfill the copy request. Individuals may receive their documents by email, fax, mail, or pickup at the Customer Service Counter.

To obtain copies of certified or exemplified documents, you may request them from the clerk’s office via a Copy Request Form. You may also print copies of court documents from the public terminals at the clerk's office for $0.10 per page.

If you have a touch-tone telephone, you may access limited case details through the court’s Voice Case Information System (McVCIS). To use this free service, you must call toll-free at (866) 222-8029 between 4:00 am and 8:00 pm. You are allowed only five searches per call.