New Mexico Notice of Right to Claim Exemptions - Garnishment

The exempt benefits are typically funds received from the government for a specific reason. For example, Veteran's Assistance benefits, Social Security, Workers' Compensation, Unemployment and Disability are benefits that cannot be seized in order to pay off outstanding debts.

The court order is called a garnishment. What's important to know is that federal benefits ordinarily are exempt from garnishment. That means you should be able to protect your federal funds from being taken by your creditors, although you might have to go to court to do so.

TO CLAIM ANY EXEMPTION THAT MAY BE AVAILABLE TO YOU, YOU MUST PREPARE A "CLAIM OF EXEMPTION" FORM LISTING ON IT ALL YOUR WAGES AND PERSONAL PROPERTY; HAVE THE CLAIM OF EXEMPTION NOTARIZED; AND FILE IT IN THE CLERK=S OFFICE.

Garnishment is the legal process whereby money or property that is owed to the Debtor or that is being held by someone (the Garnishee) for the Debtor, is taken to pay a Judgment. Wages and bank accounts are the most commonly garnished property.

When there is a court judgment against you, the creditor has the right to garnish your wages.With the exception of a student loan debt or a debt owed the government, garnishment can take place only after the creditor obtains a court judgment against you.

A Claim of Exemption is a form a debtor files with the levying officer (like the sheriff or marshal) explaining why the property or money that the creditor wants to take should be exempt (excluded). There are laws and rules that say which types of income or property are exempt.

Funds Exempt from Bank Account Garnishment Social Security, and other government benefit, or payments. Monies received for child support or alimony (spousal support) Workers' compensation payments. Retirement funds, such as those from pensions or annuities.

Some common forms of collection include bank account levies, wage garnishment, and asset liquidation.This is because certain sources of income and assets are considered exempt from lien or levy under California law. Typically speaking, bank accounts of a judgment debtor are not exempt from collection.

If it's already started, you can try to challenge the judgment or negotiate with the creditor. But, they're in the driver's seat, and if they don't allow you to stop a garnishment by agreeing to make voluntary payments, you can't really force them to. You can, however, stop the garnishment by filing a bankruptcy case.