How To File Bankruptcy for Free in New Mexico

Collect Your New Mexico Bankruptcy Documents

The first step in filing Chapter 7 bankruptcy is gathering your paperwork. Some documents are required by the court, while others simply make it easier to complete your forms. Having everything in one place can save you stress later on.

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

• Pay stubs for the past six months to show your income and eligibility

• Tax returns from the last two years

• A bank statement that includes the exact date you file your case

🗂️ It also helps to gather some extra documents while you’re getting organized, including:

• 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 of the three major credit bureaus at AnnualCreditReport.com.

✨ If you’re using Upsolve’s free tool, your credit report will be pulled for you automatically.

Take a Credit Counseling Course

Before you can file Chapter 7 bankruptcy in New Mexico, you’ll need to complete a credit counseling course. This short class explains your options for dealing with debt and helps confirm that Chapter 7 is the right choice for you.

💡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 the course from a court-approved provider in New Mexico.

• Most people take the course online, though you can also do it by phone, and some providers even offer it in person.

You’ll get a certificate at the end. Be sure to include it when you file. If it’s missing, your case could be delayed or even dismissed.

Complete the Bankruptcy Forms

If you’re filing Chapter 7 bankruptcy without a lawyer, you’ll need to complete and file a set of forms to officially start your case. These forms are the same for everyone, no matter which state you live in. You can download them for free as fillable PDFs from USCourts.gov.

👉 Some bankruptcy courts also have their own local forms. To see what’s required in New Mexico, check the New Mexico District & Filing Requirements section of this guide.

🛠️ If you’re eligible to use Upsolve’s free filing tool, you won’t need to worry about filling out these forms by hand. You’ll answer a simple online questionnaire, and Upsolve’s software will use your answers to generate your forms.

Many people also choose to work with a bankruptcy lawyer. If you go this route, the lawyer or someone on their team 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, but 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’re using Upsolve’s free filing tool and qualify for a waiver, we’ll help you prepare the request form. You’ll still need to print it and file it with the court yourself.

📆 If you don’t qualify for a waiver, you can ask the court for permission to pay in installments. This means you’ll pay part of the fee when you file and the rest in monthly payments. This option can be helpful if you need to file quickly to trigger the automatic stay. This is a legal protection that stops wage garnishment, foreclosure, and most collection efforts as soon as your case is filed.

🛑 If you choose the payment plan, it’s important to stay on track. If you miss a payment, the court may dismiss your case, and you’ll lose the protection bankruptcy provides.

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, it’s a good idea to print a copy for your records. This checklist can help you make sure everything’s ready for the court.

🖨️ If you do choose to 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.

✨ If you're using Upsolve’s free tool, you'll get a print-ready packet that’s organized and easy to follow. It even includes clear markers showing where to sign.

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. After that, you’ll still need to mail or hand-deliver a few other documents. Your case won’t officially begin until the court receives those items.

🏛️ Some people prefer to file in person. Hand-delivering your forms can give you peace of mind because 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. Many filers find this option reassuring since they know their case is moving forward the same day.

📬 Mailing your forms is also an option. Since you won’t be there in person, it’s extra important to review your paperwork carefully before mailing. If something’s missing, the court won’t open your case until you correct it, which can cause delays.

Mail Documents to Your Trustee

After you file your case, the court will assign a bankruptcy trustee. Their job is to review your forms, check your financial details, and collect a few documents to help confirm that everything is accurate and complete. 

📌 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. This is a brief meeting where the trustee goes over your bankruptcy forms with you.

📄 The trustee usually asks for:

• Your most recent federal tax return (or a note explaining why you don’t have one)

• 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 (like a copy of your Social Security card, a W-2, or a pay stub with your full SSN)

• Your most recent pay stub or other proof of income

Sometimes trustees need to see a bit more paperwork, like an extra bank statement or pay stub. If you get a request like this, it’s nothing to worry about. Just send the documents as soon as you can.

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. You or the course provider can submit it.

Attend Your 341 Meeting

About a month after you file, you’ll attend your 341 meeting, also called the meeting of creditors. This is a short, required meeting where 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 (like your tax return or pay stub)

• 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, but most people find it much easier than they expected. Once it’s done, you’ve finished the last big step in the process. After that, it’s just a matter of waiting for your discharge.

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. If you own the car outright, your equity is equal to the car’s current market value.

Exemptions are protections that let you keep certain property in bankruptcy. In New Mexico, you can use a $10,000 state vehicle exemption or a $5,025 federal exemption to protect your car’s equity. We’ll cover exemptions in more detail later in the New Mexico Exemptions section of this guide.

🚗 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 for handling a car loan:

• Reaffirm the loan. You agree to keep making payments under your current contract by signing a reaffirmation agreement. If you’re up to date and want to keep the car, this is a common choice. But if you fall behind later, the lender can still repossess the car and collect the balance. Both the lender and the bankruptcy judge must approve the reaffirmation agreement.

• Redeem the car. You pay the current value of the car in a lump sum. This can work if the car is worth much less than what you owe and if you have access to a lump sum of money. The lender must approve the redemption.

• Surrender the car. You give the car back (called voluntary repossession), and the rest of the loan is erased. Many people choose this if the payments no longer fit their budget or the car isn’t worth keeping. 

📄 If you lease a car, you can choose to keep the lease if you’re current or return the car to end the contract. Learn more in our car lease guide.