New Mexico Claim of Exemption
File a New Mexico claim of exemption to protect wages and funds from garnishment. Learn the 75 percent wage rule, Form 4-809, and what income is exempt.
Introduction
A New Mexico claim of exemption is a form you file to protect some or all of your wages or bank funds from a garnishment. An exemption is money the law says a creditor cannot take. After a creditor wins a money judgment, it can serve a writ of garnishment on your employer or bank and pull money that would otherwise go to you. In New Mexico the basic wage exemption is automatic: the law already shields the greater of 75 percent of your disposable earnings or an amount tied to the minimum wage, so your employer withholds only what is left. You file a formal Claim of Exemption, Form 4-809, to protect other funds, such as money in a bank account, within 10 days after you are served with the notice of your right to claim exemptions. Money can be held while the claim is decided, so act quickly. DocDraft prepares a New Mexico claim of exemption from your details, and attorney review is available before you file.
Key Things to Know
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A New Mexico claim of exemption is a form you file with the court to protect some or all of your wages or bank funds from garnishment. It tells the court the money is exempt, meaning the law does not let a creditor take it.
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The basic wage exemption is automatic. Under N.M. Stat. Ann. section 35-12-7 your employer already shields the greater of 75 percent of your disposable earnings or 40 times the highest applicable minimum hourly wage each week, so you do not have to file a form to get the wage protection itself.
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You file a Claim of Exemption, Form 4-809, to protect other funds. For property beyond the automatic wage exemption, such as money in a bank account, you file the form within 10 days after the garnishee serves the notice of your right to claim exemptions.
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The 10-day clock runs from the exemption notice. Under Rule 2-802 you have 10 days after service of the notice of the right to claim exemptions to file your claim, so read the garnishment papers as soon as they arrive.
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Some income is exempt no matter the debt. Social Security, disability, veterans benefits, and many pensions and public benefits are protected, and a claim of exemption is how you free those funds if a bank has frozen them.
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Money can be held while the claim is decided. Because garnished funds may be tied up until the court resolves your claim, filing quickly limits what you lose.
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Disputing your claim triggers a hearing. If the creditor disputes your claim of exemption, the court holds a hearing on it within 10 days after the notice of dispute is filed, where you show the money is protected.
Key decisions before you file
Before you file a Claim of Exemption in New Mexico, a few decisions shape the document: which option to choose and what each one means. The Claim of Exemption guide walks through them.
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New Mexico Requirements for Claim of Exemption
File the New Mexico claim of exemption with the correct office, the court or the levying officer as New Mexico directs, within the state's window after the garnishment is served. Money is usually held until the claim is decided, so filing late can forfeit wages the law would otherwise protect.
Frequently Asked Questions
A New Mexico claim of exemption is a form, Form 4-809, that you file with the court to protect wages or bank funds from a garnishment. It tells the court that some or all of the money is exempt, meaning the law does not let a creditor take it. The basic wage exemption is automatic, so the form is mainly used to protect other funds, such as money in a bank account.
Not for the basic wage protection. Under New Mexico law the wage exemption is self-executing, so your employer automatically withholds only the part of your pay that is not exempt. You file a Claim of Exemption, Form 4-809, when you need to protect other funds, such as money already deposited in a bank account, or to show that too much is being taken.
Under N.M. Stat. Ann. section 35-12-7 the exempt amount is the greater of 75 percent of your disposable earnings for the pay period, or an amount each week equal to 40 times the highest applicable minimum hourly wage where you work. A creditor can only reach what is left above that. Disposable earnings are what remains after legally required deductions.
You have 10 days after the garnishee serves you with the notice of your right to claim exemptions to file your Claim of Exemption, Form 4-809, with the court. Because garnished funds can be held while the claim is decided, and missing the window can cost you protected money, file as soon as you receive the garnishment papers.
Social Security, Supplemental Security Income, disability, veterans benefits, and many pensions and public benefits are exempt from garnishment for ordinary debts, no matter how much you owe. The greater of 75 percent of your disposable wages or 40 times the applicable minimum wage each week is also protected. If exempt benefits are frozen in a bank account, a claim of exemption is how you get them released.
New Mexico does not have a separate head-of-household wage exemption, but its standard protection is strong: the greater of 75 percent of your disposable earnings or 40 times the applicable minimum wage each week is exempt for everyone. If garnishment still leaves you unable to meet basic needs, you can file a claim of exemption and ask the court to protect additional funds you can show are necessary.
You file the Claim of Exemption, Form 4-809, with the clerk of the court that issued the garnishment. The clerk gives notice to the creditor, who can dispute the claim. If the creditor disputes it, the court sets a hearing on the claim within 10 days after the notice of dispute is filed, where you show the money is protected.
The court and creditor are notified of your claim. If the creditor does not dispute it, the exempt funds are released. If the creditor disputes the claim, the court holds a hearing within 10 days after the notice of dispute is filed, where you show the money is exempt and the creditor must justify the garnishment. Garnished funds may be held until the claim is resolved.