New Mexico Announces Phased Approach to Lifting Debt Collection Restrictions

Debt collection orders will resume in the state’s courts over time.

8/6/2021 9:00 AM

GarnishmentJudgmentsNewsStateCompliance
New Mexico Announces Phased Approach to Lifting Debt Collection Restrictions

On Aug. 2, the New Mexico Supreme Court issued an order phasing in the use of new writs of garnishment and writs of execution in consumer debt collection cases.

According to an Associated Press report, the order will bring to an end the New Mexico court system’s moratorium on debt collection remedies.

The New Mexico Supreme Court suspended the issuance of new writs of garnishment in June of 2020 in response to the COVID-19 public health emergency, ACA International previously reported.

“We have reached a point in the COVID-19 pandemic where courts can normally process consumer debt cases and foreclosures in a fair and orderly manner,” Supreme Court Chief Justice Michael E. Vigil said in a statement to the Associated Press.

Vigil added that while protections for consumers adversely affected by the COVID-19 public health emergency and related employment challenges has now been set to expire, “the situation is unlikely to be overwhelming” for consumers.

Under the order, the return to normal garnishment practice will follow a staggered schedule, with new garnishments and writs of execution permitted to be filed on:

·        Sept. 1, 2021, for judgments filed on or before Dec. 31, 2016.

·        Oct. 1, 2021, for judgments filed on or before Dec. 31, 2018.

·        Nov. 1, 2021, for judgments filed on or before Dec. 31, 2019.

·        Jan. 1, 2022, for judgments filed on or before Dec. 31, 2020.

·        Feb. 1, 2022, for all cases, regardless of the date the judgment was filed.

Additionally, the order specifies that any garnishment or writ of execution issued in a consumer debt collection case before June 8, 2020, but never served shall be deemed null and void. [Emphasis added.] In such instances, a judgment creditor may file a new, separate application for a garnishment or writ after the stay has been lifted under the schedule set forth above.

Unemployment benefit payments remain exempt from garnishment or execution under New Mexico law, with burden on the judgment debtor to identify any exempt funds.

Notwithstanding the effect of the order, New Mexico’s moratorium on evictions remains in place, and mortgage lenders remain prohibited from foreclosing on properties without providing forbearance options and resources to homeowners.

For more information on how the ACA Licensing staff can assist with your licensing needs, please contact us at Licensing@acainternational.org or call (952) 926-6547.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

New Mexico Announces Phased Approach to Lifting Debt Collection Restrictions

On Aug. 2, the New Mexico Supreme Court issued an order phasing in the use of new writs of garnishment and writs of execution in consumer debt collection cases.

According to an Associated Press report, the order will bring to an end the New Mexico court system’s moratorium on debt collection remedies.

The New Mexico Supreme Court suspended the issuance of new writs of garnishment in June of 2020 in response to the COVID-19 public health emergency, ACA International previously reported.

“We have reached a point in the COVID-19 pandemic where courts can normally process consumer debt cases and foreclosures in a fair and orderly manner,” Supreme Court Chief Justice Michael E. Vigil said in a statement to the Associated Press.

Vigil added that while protections for consumers adversely affected by the COVID-19 public health emergency and related employment challenges has now been set to expire, “the situation is unlikely to be overwhelming” for consumers.

Under the order, the return to normal garnishment practice will follow a staggered schedule, with new garnishments and writs of execution permitted to be filed on:

·        Sept. 1, 2021, for judgments filed on or before Dec. 31, 2016.

·        Oct. 1, 2021, for judgments filed on or before Dec. 31, 2018.

·        Nov. 1, 2021, for judgments filed on or before Dec. 31, 2019.

·        Jan. 1, 2022, for judgments filed on or before Dec. 31, 2020.

·        Feb. 1, 2022, for all cases, regardless of the date the judgment was filed.

Additionally, the order specifies that any garnishment or writ of execution issued in a consumer debt collection case before June 8, 2020, but never served shall be deemed null and void. [Emphasis added.] In such instances, a judgment creditor may file a new, separate application for a garnishment or writ after the stay has been lifted under the schedule set forth above.

Unemployment benefit payments remain exempt from garnishment or execution under New Mexico law, with burden on the judgment debtor to identify any exempt funds.

Notwithstanding the effect of the order, New Mexico’s moratorium on evictions remains in place, and mortgage lenders remain prohibited from foreclosing on properties without providing forbearance options and resources to homeowners.

For more information on how the ACA Licensing staff can assist with your licensing needs, please contact us at Licensing@acainternational.org or call (952) 926-6547.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

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