Foreclosure & Alternatives Law

Can I Keep My Home If I File Bankruptcy in New Mexico?

A New Mexico homeowner is entitled to a homestead exemption of $60,000. If the house is held jointly then each homeowner may claim the exemption for a total of $120,000. That means that if an individual homeowner has $60,000 or less in equity in the home ($120,000 for joint owners) and continues to make regular payments on the mortgage then the homeowner is unlikely to be forced to sell his or her home as part of the bankruptcy proceeding. However, if the homeowner has more than $60,000 worth of equity in the home then the bankruptcy judge may order that the home be sold and that the some of the money be used to pay unsecured creditors.