46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO BANKRUPTCY; ENACTING THE HOMESTEAD BANKRUPTCY EXCEPTION ACT; EXEMPTING A DEBTOR'S HOMESTEAD FROM THE PROCESSES OF A BANKRUPTCY COURT IN CERTAIN CASES; DEFINING THE EXTENT OF THE HOMESTEAD EXEMPTION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. SHORT TITLE.--This act may be cited as the "Homestead Bankruptcy Exception Act".

Section 2. DEFINITION.--As used in the Homestead Bankruptcy Exception Act, "homestead" means:

A. if located outside a municipality, the primary residence of the debtor, including any contiguous land up to one hundred sixty acres; or

B. if located inside a municipality, the primary residence of the debtor, including any contiguous land up to one-half acre.

Section 3. HOMESTEAD EXEMPTION FOR THE PURPOSES OF BANKRUPTCY PROCEEDINGS.--For the purposes of bankruptcy proceedings, a debtor's homestead is exempt from the processes of the bankruptcy court, and no judgment, decree or execution shall be a lien against it in bankruptcy court, except for the payment of taxes, tax assessments or obligations contracted for the purchase, improvement or repair of the homestead.

Section 4. LIMITATION OF THE HOMESTEAD EXEMPTION.--The homestead exemption provided in Section 3 of the Homestead Bankruptcy Exception Act is limited to the owner of the homestead and his heirs.

Section 5. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2003.