New Mexico Debt Relief

Credit Card Debt law in New Mexico provides creditors with a 4-year time limit on filing suit for open-ended accounts. This time limit, called the Statute of Limitations (SOL), begins on the date the debtor first fails to make a payment. This time limit is reset if the debtor makes any subsequent partial payments. Those served with a summons on a debt lawsuit have 30 days to file an answer to avoid a default judgment. For this reason, it is wise to send the answer via certified mail.

Judgment Enforcement

A judgment in New Mexico is enforceable for 20 years, accruing interest at the rate of the contract or 8.75%. Creditors may levy both personal and real property, but the law allows for a $30,000 homestead exemption.

Wage garnishments may not begin pre-judgment. They are allowed up to 25% of disposal income on a continuous basis until the full debt is paid. Earnings such as child support, worker’s compensation benefits, public assistance program benefits, and Social Security benefits may not be attached.

The State of New Mexico courts have ruled that a “confession of judgment,” a contract clause allowing for automatic judgment against the debtor, should not be recognized by the court. There are no state laws specifically addressing the issue.

Debt Settlement

New Mexico residents can avoid court proceedings and potential bankruptcy by instead working with the creditor to arrange for Debt Settlement. This allows debtors to make payments interest free until the debt is paid, rather than depending on the court to order a payment plan that may or may not be fair.