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.
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Key Things to Know
- 1
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.
- 2
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.
- 3
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.
- 4
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.
- 5
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.
- 6
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.
- 7
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
New Mexico Filing Deadline and Office
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.