The New Jersey bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in New Jersey. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
In New Jersey, you also have the choice of using the federal exemption statutes instead of your New Jersey exemptions.
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in New Jersey you may also use certain federal exemptions in addition to your New Jersey exemptions.
ASSET | EXEMPTION DESCRIPTION | LAW SECTION |
Homestead | None |
|
Insurance | Annuity contract proceeds to $500 per month Disability or death benefits for military member Disability, death, medical or hospital benefits for civil defense workers Fraternal benefit society benefits Group life or health policy or proceeds Health or disability benefits Life insurance proceeds if clause prohibits proceeds from being used to pay beneficiary’s creditors Life insurance proceeds or avails if you’re not the insured | 17B:24-7 38A:4-8 App. A:9-57.6 17:44A-19 17B:24-9 17:18-12, 17B:24-8 17B:24-10 17B:24-6b |
Miscellaneous | Property of business partnership | 42:1-25 |
Pensions | Alcohol beverage control officers City boards of health employees Civil Defense workers County employees ERISA-qualified benefits Firefighters, police officers, traffic officers Judges Municipal employees Prison employees Public employees School district employees State police Street & water department employees Teachers Trust containing personal property created pursuant to federal law unless conveyance into trust done fraudulently or debt is for child support or alimony | 43:8A-20 43:18-12 App. A:9-57.6 43:10-57, 43:10-105 43:13-9 43:16-7, 43:16A-17 43:6A-41 43"13-44 43:7-13 43:15A-53 18A:66-116 53:5A-45 43:19-17 18A:66-51
25:2-1 |
Personal Property | Goods & chattels, personal property & stock or interest in corporations to $1000 total Burial plots Clothing Furniture & household goods to $1000 | 2A:17-19 8A:5-10 2A:17-19 2A:26-4 |
Public Benefits | Crime victims’ compensation Old -age, permanent disability assistance Unemployment compensation Worker’s compensation | 52:4B-30 44:7-35 43:21-53 34:15-29 |
Tools of Trade | None |
|
Wages | 90% of earned but unpaid wages if income under $7500; if income over $7500; judge decides amount that is exempt Wages or allowances received by military personnel | 2A:17-56 38A:4-8 |
Wild Card | None |
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For more information on filing bankruptcy in New Jersey explore New Jersey Bankruptcy Law.
