New Mexico Laws on Wage Garnishment, Statute of Limitations on Debt and Bankruptcy Property Exemptions
WAGE GARNISHMENT EXEMPTION: 75% of weekly earnings or 40 times the federal minimum hourly wage, whichever is greater
MAXIMUM INTEREST RATE: Judgment: 8.75% or contract rate
STATUTE OF LIMITATIONS ON ENFORCEMENT:
Open Account (credit card): 4 years
Written Contract: 6 yearsDomestic Judgment: 14 yearsForeign Judgment: 14 yearsBAD CHECK LAW DAMAGES: Amount due plus three times damages up to $500 per check
NEW MEXICO BANKRUPTCY PROPERTY EXEMPTIONS (New Mexico Statutes Annotated):
Can use either the state exemptions below or federal exemptions
The State of New Mexico has exempted the property and income below from seizure by the bankruptcy court to pay creditors:
Real Property: Up to $30,000; if jointly owned, up to $30,000 for each owner [2-10-9]
Personal Property: Clothing, unlimited amount [42-10-1 and 42-10-2]; motor vehicle up to $4,000 [42-10-1 and 42-10-2]; books, furniture and health equipment, unlimited amount [42-10-1 and 42-10-2]; health aids, unlimited amount [42-10-1 and 42-10-2]; jewelry up to $2,500 [42-10-1 and 42-10-2]; any personal property up to $500 [42-10-1]; books, implements and tools of trade up to $1,500 [42-10-1 and 42-10-2]; materials, tools and machinery to operate or repair an oil or gas line or pipeline, unlimited amount [70-4-12]; building materials, unlimited amount [48-2-15]; cooperative association shares, only amount needed to be a member [53-4-28]
How to Deal with Debt Collectors
Federal and State Laws Regarding Debt Collection
State Laws Regulating Wage Garnishments
Insurance / Annuities: Benevolent association benefits to $5,000 [42-10-4]; fraternal society benefits, unlimited amount [59A-44-18]; life, accident, health or annuity benefits or cash value if beneficiary is a citizen of state [42-10-3]
Pensions / Retirement Plans: Pension or retirement benefits, unlimited amount [42-10-1 and 42-10-2]; public school employees, unlimited amount [22-11-42]
Public Benefits / Entitlements: Workers' compensation, unlimited amount [52-1-52]; unemployment compensation, unlimited amount [51-1-37]; aid to families with dependent children, unlimited amount [27-2-21]; crime victims' compensation [31-22-15]; general assistance, unlimited amount [27-2-21]; occupational disease disablement benefits, unlimited amount [52-3-37]
Wages: 75% of earned but unpaid wages [35-12-7]
Miscellaneous: Ownership interest in unincorporated association, unlimited amount [53-10-2]; any property up to $2,000 if taken in lieu of real estate exemption [42-10-10]
