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What Is the Bankruptcy Means Test in New Mexico?

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Written by the Upsolve Team.  
Updated October 1, 2020


The state motto of New Mexico is a Latin phrase commonly translated as “Grows as it goes.” This observation refers to the way lightning bolts grow power from within themselves until they unleash their full potential. This motto beautifully reflects the independent, self-sufficient spirit of the New Mexican people. Even when times are tough, they “grow as they go” and often seek bold solutions that unlock their potential as individuals. If you are struggling to make ends meet despite consistent hard work, know that seeking New Mexico bankruptcy protection will help you to “grow as you go.” Once your debts become manageable, your family will be able to focus on its immediate needs and overall wellbeing rather than worrying about how to pay everyone. One of the most effective ways you can bring your finances back under control involves filing forChapter 7 bankruptcy. This process allows families toerase most of their debts as long as their income is low enough to pass the Chapter 7 Means Test.

New Mexico Median Income Levels

New Mexico Median Income Standards for Means Test for Cases Filed On or After May 1, 2020
Household SizeMonthly IncomeAnnual Income
1$3,803.75$45,645.00
2$4,693.92$56,327.00
3$5,051.42$60,617.00
4$5,630.00$67,560.00
5$6,380.00$76,560.00
6$7,130.00$85,560.00
7$7,880.00$94,560.00
8$8,630.00$103,560.00
9$9,380.00$112,560.00
10$10,130.00$121,560.00

Discharge in Bankruptcy for New Mexico

The process of erasing your debts after filing a Chapter 7 bankruptcy is done when the Court enters abankruptcy discharge. To qualify for this life-altering legal benefit, your household must pass the bankruptcy Means Test in New Mexico. A New Mexico bankruptcy discharge under Chapter 7 is only available to those filers who can’t reasonably be expected to pay back their debts over time. This eligibility is determined by evaluating a household's size, income and expenses. If your income is low enough based on your household size and your pass the Chapter 7 Means Test, your New Mexico bankruptcy discharge will be granted about 90 days after your case is filed. It’s important, however, to takeevery step of the Chapter 7 New Mexico bankruptcy process seriously, as your discharge can be denied (and even revoked) if you don’t.

New Mexico Means Test Calculator

You can’t begin the process of filing Chapter 7 bankruptcy until you determine whether you meet New Mexico’s Chapter 7 Means Test requirements. To see if you qualify for a Chapter 7 bankruptcy discharge, simply access an online Means Test calculator and compare your family’s household size, income and expenses to the limits provided. It’s important that you use a New Mexico Means Test calculator, rather than a generic one, because the numbers are different in each state. Additionally, you need to take care to use aMeans Test calculator that is accurate and up-to-date. Not every site that offers state-specific calculators updates these resources when the standards change. Helpfully, the legal aidnonprofit organization Upsolve provides reliable, current Means Test calculators for every state. Should you have questions about your results, you can access valuable information about the Chapter 7 bankruptcy process from Upsolve’s Learning Center at any time. 

What Happens if I Fail the Means Test for New Mexico?

Sometimes, to “grow as you go” you have to search for solutions a little longer than you might generally prefer to. You may be feeling understandably discouraged if you have discovered that you don’t pass the Chapter 7 Means Test. However, it’s important to remember that Chapter 7 bankruptcy is not the only effective debt management solution available to New Mexico families like yours. For example, you may be eligible to file for reorganization bankruptcy, also known asChapter 13 bankruptcy. Anexperienced attorney can help you explore whether restructuring your debt so that your monthly payments are lower is a good option for your situation. Scheduling a consultation with a bankruptcy lawyer is always a risk-free process, as it doesn’t obligate you to file a New Mexico bankruptcy. These meetings are simply designed to make sure that your questions are answered and your decisions about your financial situations are informed.



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The Upsolve Team

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