As a partner in the largest consumer bankruptcy firm in New Jersey, I spend my days helping people navigate financial distress. But every now and then, a piece of legislation comes across my desk that stops me in my tracks—not just as a lawyer, but as a soldier.
The newly enacted New Jersey Veterans and Military Spouses Asset Protection Act is one of those laws.
For me, this topic is deeply personal. Before I was an attorney, I served four years in the U.S. Army during the Gulf War. I know firsthand the sacrifice that service demands. But I also know what happens when the uniform comes off. Like many of you, I struggled financially when I came home from serving overseas. The transition back to civilian life is rarely as smooth as we hope, and financial instability can strike even the hardest-working veterans.
That is why I am incredibly proud to share the details of this new law. It is a game-changer for veterans and military families in our state, offering protections I wish had existed years ago.
New Jersey Veterans and Military Spouses Now Have Powerful New Asset Protections Against Creditors
On January 20, 2026, Governor Phil Murphy signed the New Jersey Veterans and Military Spouses Asset Protection Act (S-4858/A-6000).
Until recently, New Jersey was widely viewed as a state with limited protections for debtors. This Act changes that narrative entirely for the military community. It recognizes that veterans face unique financial stressors—from service-related health issues to disrupted earning capacity.
This law provides powerful new defenses against creditor actions, including levies, wage garnishments, and forced sales of property.
What is Protected? (The Highlights)
If you are a veteran or military spouse facing debt collection, here is what this law safeguards for you:
- Your Home (Unlimited Value): This is massive. The new law provides a homestead exemption for both your primary and secondary residences. Crucially, there is no limit on the value or the amount of equity protected. This ensures that the stability you fought to build cannot easily be taken away.
- Your Vehicle (Up to $30,000): Transportation is a necessity, not a luxury. The Act protects one vehicle per household up to $30,000 in fair market value.
- Your Future: The Act strengthens protections for pensions, retirement benefits, and disability benefits. These are often essential for veterans dealing with service-related injuries, and this law keeps them out of the hands of creditors.
When Does It Apply?
Timing is everything in legal battles. Here is what you need to know about the effective dates:
- Effective Immediately: The law took effect the moment it was signed in January 2026.
- Retroactivity: It applies retroactively to January 1, 2025, but only for debts incurred or claims filed on or after that date.
- The Cutoff: It generally cannot undo final judgments that were entered before the Act took effect.
The Fine Print: What Isn't Protected?
While this law is remedial and should be "liberally construed" to protect us, it is not a magic wand for every debt. The protections do not apply to:
- Mortgages: If you don't pay your mortgage, the lender can still foreclose.
- Government Debts: Taxes and government assessments remain collectible.
- "Bad Acts": Debts resulting from fraud, crime, or willful misconduct are not protected.
A Final Word from a Veteran
When I returned from the Gulf War, I learned that financial battles can be just as stressful as physical ones. If you are a veteran or military spouse facing creditor pressure, please do not ignore it. The sooner you take action, the more control you have.
At Scura, Wigfield, Heyer, Stevens & Cammarota, LLP, we focus our practice on protecting individuals from creditors. My military experience instilled in me a commitment to excellence and a drive to fight for others. I would be honored to use that experience to help you determine if this new law can protect your assets.
Call us today for a free consultation. We will review your specific timeline to see if you qualify for these new protections.
