How To File Bankruptcy for Free in New Mexico (2025 Guide)

Facing overwhelming debt in New Mexico? Chapter 7 bankruptcy can give you a clean slate. It wipes out credit cards, medical bills, and payday loans. Many people successfully file on their own without a lawyer. This guide walks you through each step of the process.

How To File Bankruptcy in New Mexico for Free

A job loss or unexpected expense can make it hard to stay afloat. Chapter 7 bankruptcy gives you a fresh start by eliminating debts.

Many people file bankruptcy successfully without hiring an attorney. You can prepare your case yourself with the right guidance and tools.

Collect Your New Mexico Bankruptcy Documents

The first step in filing Chapter 7 bankruptcy is gathering your paperwork. Having everything in one place saves you stress later.

Here’s what you’ll need to submit to the court or trustee:

• Pay stubs for the past six months to show your income
• Tax returns from the last two years
• A bank statement that includes the exact date you file

Extra documents that help you complete your forms accurately:

• Credit card and loan statements
• Letters or notices from debt collectors
• 6-12 months of bank statements
• A recent credit report

You can get a free weekly credit report from each major credit bureau at AnnualCreditReport.com.

Take a Credit Counseling Course

Before you can file Chapter 7 bankruptcy in New Mexico, you must complete a credit counseling course. This short class explains your options for dealing with debt.

Here’s what to know:

• The cost is usually $10-$50, but you may qualify for a fee waiver
• The course must be completed within 180 days before you file
• You must take it from a court-approved provider in New Mexico
• Most people take the course online

You’ll get a certificate at the end. Be sure to include it when you file.

Complete the Bankruptcy Forms

If you’re filing Chapter 7 bankruptcy without a lawyer, you’ll need to complete required forms. You can download them for free from USCourts.gov.

Some bankruptcy courts also have their own local forms. Check the New Mexico District & Filing Requirements section of this guide.

Working with a bankruptcy attorney means the lawyer will prepare the forms for you using the information you provide.

Get Your Filing Fee

It costs $338 to file a Chapter 7 bankruptcy case. Some people pay the full fee when they file. Many qualify for a fee waiver or payment plan.

If your income is below 150% of the federal poverty guideline, the court may waive the fee entirely.

If you don’t qualify for a waiver, you can ask the court for permission to pay in installments. You’ll pay part of the fee when you file and the rest in monthly payments.

If you choose the payment plan, stay on track. If you miss a payment, the court may dismiss your case.

Print Your Bankruptcy Forms

Unless you’re filing your forms electronically, you’ll need to print everything to file in person or by mail. Even if you e-file, print a copy for your records.

If you print your forms, follow these best practices:

• Use black ink
• Print on regular 8.5″ x 11″ white paper
• Print single-sided only
• Don’t staple or hole-punch anything

Be sure to sign every page that requires a signature.

File Your Forms With the New Mexico Bankruptcy Court

In New Mexico, you have three options for filing your forms: online through the court’s eSR system, in person at the courthouse, or by mail.

To file online, you can use the court’s eSR (Electronic Self-Representation) tool. It guides you through the forms step by step to submit them electronically.

Some people prefer to file in person. Hand-delivering your forms can give you peace of mind. The clerk can check for completeness. If a page or signature has been overlooked, you’ll get the chance to fix it before you leave.

Mailing your forms is also an option. Since you won’t be there in person, review your paperwork carefully before mailing.

Mail Documents to Your Trustee

After you file your case, the court will assign a bankruptcy trustee. Their job is to review your forms and check your financial details.

Within a few days of filing, you’ll get an official notice in the mail with your trustee’s name and contact information. You’ll need to send them certain documents within 14 days before your 341 meeting.

The trustee usually asks for:

• Your most recent federal tax return
• A bank statement for each account you had on the day you filed
• A clear copy of your government-issued photo ID
• Proof of your Social Security number
• Your most recent pay stub or other proof of income

Take a Debtor Education Course

After you file your bankruptcy case, you’ll need to complete a debtor education course before the court can grant your discharge. That’s the official order that erases your qualifying debts.

This course focuses on money management skills like budgeting, saving, and using credit wisely. The goal is to give you tools to make the most of your fresh start.

Key things to know:

• Take the course from a provider approved by the bankruptcy court
• The deadline is 60 days after your 341 meeting of creditors
• A completion certificate must be filed with the court

Attend Your 341 Meeting

About a month after you file, you’ll attend your 341 meeting, also called the meeting of creditors. Your trustee reviews your case and asks you a few questions about your bankruptcy forms and finances. Creditors are allowed to attend, but in most cases, they don’t.

Most 341 meetings are held by Zoom videoconference. The meeting usually takes just 5-10 minutes. The trustee will confirm your identity and ask a few questions to make sure your paperwork is accurate.

It helps to have these nearby:

• A copy of your bankruptcy forms
• The documents you already sent to your trustee
• The case notice you received from the court
• A government-issued photo ID and proof of your Social Security number

It’s normal to feel nervous before the meeting. Most people find it much easier than they expected. Once it’s done, you’ve finished the last big step in the process.

Deal With Your Car

The good news is that many Chapter 7 filers are able to keep their car. It depends on how much equity you have in the car, whether there’s a loan, and how bankruptcy exemptions apply.

Equity is the part of the car you truly own. It’s the current value of the car minus any loan balance.

Exemptions are laws that protect the property you need to live and work. In New Mexico, you can use a $10,000 state vehicle exemption or a $5,025 federal exemption to protect your car’s equity.

If your car is paid off and your equity is less than the exemption amount, you can usually keep it.

If you’re still making car payments, you may be able to keep the car if your equity is fully covered by an exemption. Here are the three main options:

• Reaffirm the loan: You agree to keep making payments under your current contract by signing a reaffirmation agreement
• Redeem the car: You pay the current value of the car in a lump sum
• Surrender the car: You give the car back, and the rest of the loan is erased

New Mexico Bankruptcy Means Test

The bankruptcy means test looks at your income and expenses to see if you qualify to file for Chapter 7. The test has two parts.

The first part compares your household income to the median income for a household of the same size in New Mexico. If your income is below the median, you pass the test right away and qualify for Chapter 7.

Many filers in New Mexico meet the requirements at this first step.

If your income is above the state median, you can move on to the second part. It takes certain allowable expenses into account.

New Mexico Districts & Filing Requirements

New Mexico has one federal bankruptcy district that serves the entire state. You can file your Chapter 7 case in person, by mail, or online using the court’s Electronic Self-Representation (eSR) tool.

File in person or by mail:
Clerk’s Office
United States Bankruptcy Court – District of New Mexico
Pete V. Domenici U.S. Courthouse
333 Lomas Blvd. NW, Suite 360
Albuquerque, New Mexico 87102

File online: The Electronic Self-Representation (eSR) tool is free and helps folks without a lawyer prepare and submit their Chapter 7 petition. It walks you through the forms step by step and does the calculations for you.

Important: Your case won’t be officially filed until you mail or hand-deliver a few additional documents to the court.

Required Forms

No matter how you file, you must submit the following items in person or by mail:

• Filing fee, fee waiver, or installment plan request
• You can pay by cashier’s check or money order made out to Clerk, U.S. Bankruptcy Court
• Cash, personal checks, and credit cards aren’t accepted from self-represented filers
• Credit Counseling Certificate
• Statement of Social Security Number
• Certification/Statement Regarding Marital Status (a local New Mexico form required even if you’re single)
• Creditor Mailing List (formatted according to specific guidelines)

Additional requirement for eSR filers:

• Declaration Regarding Electronic Filing

New Mexico Bankruptcy Exemptions

When you file Chapter 7 bankruptcy in New Mexico, everything you own is part of your case. But that doesn’t mean you’ll lose it all.

Exemptions are laws that protect the property you need to live and work. If an exemption covers something, the bankruptcy trustee can’t usually take it to pay creditors. Most Chapter 7 cases are no-asset cases, which means the filer keeps everything they own.

If you’ve lived in New Mexico for at least two years before filing, you can choose between using the New Mexico exemptions or the federal bankruptcy exemptions.

Here’s a quick comparison of the key bankruptcy exemptions:

• Homestead exemption
  • New Mexico: Protects up to $150,000 in home equity, or $300,000 if jointly owned and filing jointly
  • Federal: Protects up to $31,575 in home equity
• Motor vehicle exemption
  • New Mexico: Protects up to $10,000 in equity in one vehicle
  • Federal: Protects up to $5,025 in equity in one vehicle
• Wildcard exemption
  • New Mexico: Protects up to $15,000 in personal property not already covered by other exemptions
  • Federal: Protects $1,675, plus up to $15,800 of any unused portion of the homestead exemption

New Mexico Bankruptcy Lawyer Cost

If you’re unsure about filing on your own, hiring a bankruptcy lawyer can give you clarity and confidence. Consider an attorney if you own a home, you have valuable property, or your case feels complex.

While attorney fees are often the biggest cost in a bankruptcy case, many people find it’s worth it to have trusted, hands-on support from start to finish. Speak with a bankruptcy attorney for free to understand your options.

New Mexico Legal Aid Organizations

Legal aid organizations offer free or low-cost legal help to people who can’t afford a private attorney. If you’re unsure about filing on your own or want advice before deciding, these New Mexico resources may be able to help.