|
In general terms of law, liens created to purchase real estate and
statutory tax liens may be enforced against any property, including a
homestead used as a primary residence. Nevertheless, these well
established creditor rights may be a preempted. Filing Chapter 13
bankruptcy prevents mortgage foreclosure, prevents tax levies and lien
execution, and creates a legal presumption that all past due mortgage
payments and back taxes are paid current - so long as the court confirms
a debtors proposed plan.
The New Mexico homestead exemption law plays an indirect role in all
plan confirmations. Only $30,000 in equity value may be claimed in
liquidation cases. The New Mexico Homestead Exemption Act nevertheless
is incorporated through several tests for confirmation which require
creditors are treated as fairly under the plan compared to value subject
to distribution under terms of Chapter 7 laws.
|
