1. A method of computer processing, comprising the steps of: (a) executing a first thread of instructions by a multithreaded processor; (b) receiving an interrupt by the processor; (c) determining availability of hardware context for servicing the interrupt: (1) if the hardware context is available, the processor starting an interrupt service on an available hardware context by executing an available thread for the interrupt service; (2) if the hardware context is not available, the processor providing the interrupt service on the first thread and determining whether a new thread should be started: if a type of the interrupt requires a new thread to be started, a pending thread latch register is set so as to indicate that the new thread is on its waiting stage to be executed; if the type of the interrupt does not require the new thread to be started, the processor completes the interrupt service on the first thread; and (d) returning execution of the processor to where the first thread was interrupted.