How to Garnish a Bank Account in New Mexico After a Judgment

A bank garnishment attaches to funds in the debtor's checking, savings, or other depository accounts when the writ is served, and can also reach funds that come into the bank's possession before it answers. Unlike wage garnishment, it does not continue indefinitely after the bank answers.

Before You Can File

New Mexico's execution-before-garnishment rule applies to bank levies just as it does to wage garnishment. You must first pursue a Writ of Execution against the debtor's personal property or document that no executable property exists. Once you have a nulla bona return from the sheriff or other evidence of no seizable assets, you can apply for a Writ of Garnishment targeting the debtor's bank accounts.

Filing the Application

Submit an Application for Writ of Garnishment (Form 4-805; use Form 4-805B for a medical-debt judgment) to the clerk of the court that issued your judgment. The application must list the judgment principal, accrued post-judgment interest (8.75% per annum under NMSA § 56-8-4 for standard civil judgments), and any allowable costs.

The clerk issues the writ, and you arrange service on the bank through the county sheriff or a process server. At the same time, send a copy of the writ to the debtor's last known address (and to counsel if counsel remains of record) and file a separate certificate of service. For a non-wage garnishment against an individual, serve the Notice of Right to Claim Exemptions and Claim of Exemption form on the bank; within four business days, the bank must mail or deliver copies of the served forms to the debtor or counsel of record.

The bank must file a written Garnishee Answer within 20 calendar days of service, disclosing the account balance and any funds it is withholding.

The $2,400 Depository Account Exemption

For actions filed on or after July 1, 2023, the first $2,400 in depository or investment account funds is exempt without the debtor having to file a claim. This is the total exemption across the accounts — not $2,400 per account. An individual or sole-proprietor debtor may claim other applicable exemptions under NMSA 1978 § 42-10-1.

Corporate debtors (LLCs, corporations) receive no depository account exemption.

For additional exemptions, the debtor has 10 calendar days after the bank serves the Notice of Right to Claim Exemptions to file a Claim of Exemption with the court clerk. If no claim is filed or the claim is denied after a hearing, the court may order the remaining non-exempt funds paid to you.

Federally Protected Deposits

Even beyond the $2,400 state exemption, some benefits may be protected from garnishment. Social Security benefits are protected under 42 U.S.C. § 407, and 31 C.F.R. § 212 sets account-protection procedures for certain directly deposited federal benefits. Veterans' benefits, civil service retirement, unemployment compensation, and TANF payments may be protected under other federal or state provisions. If qualifying benefits were directly deposited and remain traceable, the bank may protect them under the applicable rules.

This means a debtor who receives primarily government benefits may have most or all of their bank balance shielded, even if it exceeds $2,400.

Timing Matters

A bank garnishment reaches funds in the bank's possession when served and may also reach deposits received before the bank answers. Deposits made after the bank answers generally require a new writ. If you suspect the debtor receives regular deposits, timing service around a deposit date can affect what the writ captures.

You can file multiple bank garnishments, though each requires a new application, service fees, and compliance with the execution prerequisite. Writ applications are subject to the seven-year filing period after judgment or revival and the fourteen-year limit from the original judgment.

What It Costs

Expect to pay the court clerk's writ application fee, plus the sheriff or process server's fee for serving the bank and the debtor. Allowable, court-approved enforcement costs may be added to the judgment balance.

The Collecting a Small Claims Judgment in New Mexico guide includes the full bank garnishment procedure with timing strategies, exemption thresholds, and a balance tracking worksheet.

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