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When filing Chapter 7, New Mexico residents may choose between two
distinctly different sets of allowable exempt property sets. First,
the State of New Mexico bankruptcy exemption statutes permit up to
$30,000 in home equity to be retained when discharging liabilities
through Chapter 7. Secondly, the federal value provision permits
only $18,500 in home equity, yet the application of wild card elections
is different. The wild card permits an unused portion of the homestead
exemption to be applied to any property, regardless of type or
classification. Even cash, checking accounts, and jewelry may be covered
under a wild card exemption.
After discussing your assets and liabilities with a New Mexico
bankruptcy lawyer, the best choice depends upon a variety of factors.
Chapter, assets, liabilities, as well as prior transfers and financial
histories all play a role. The attorney fees charged for legal
representation are minimal compared to the loss of potential assets if
failing to properly include the exemption election with forms filed with
the court.
See also: New Mexico Homestead Exemption.
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