When an individual files for bankruptcy protection, they are entitled to exempt certain property from their bankruptcy estate. The exemptions ensure that property that the debtor seeks to retain isn’t liquidated, or that a specific dollar amount is protected from being disbursed to creditors. In other words, if the exemption doesn’t cover the entire value of the property, it may be sold and the debtor will still retain the exempt amount in cash.
New Jersey Bankruptcy Exemptions
Consequently, exemptions limits are applicable to any equity you have in the property. The equity value of property is the difference between the value of the property and what is actually owed, if any. For example, the value of a 1969 Ford Mustang is $50,000.00, with a remaining loan balance of $40,000.00. The equity the debtor owns is $10,000.00.
In New Jersey, a debtor may choose between two sets of exemptions: the federal exemptions or the New Jersey exemptions.
This following chart will specifically look at the New Jersey Exemptions:
|
New Jersey Statute |
Description of Property |
Exempt Amount |
|
Homestead |
Principal Residence |
None |
|
Wild Card |
All assets |
None |
|
Tools of Trade |
Tools of Trade |
None |
|
Tenancy by the Entirety |
Tenancy by the Entirety |
Nomne |
|
N.J. Stat. Ann § 2A:17-19 |
Personal Property-General |
$1,000-Individual $2,000-Joint |
|
N.J. Stat. Ann § 2A:17-19 |
Personal Property-Clothing |
100% Exempt |
|
N.J. Stat. Ann § 2A:17-19 |
Stocks and Interest in Corporation |
$1,000.00 |
|
N.J. Stat. Ann § 2A:17-56 |
Wages |
90% of earned but unpaid wages if income is under $7,500.00. |
|
N.J. Stat. Ann § 2A:26-4 |
Personal Property-Household Goods & Furnishing |
$1,000-Individual $2,000-Joint |
|
N.J. Stat. Ann §§ 8A:5-9, 8A:5-10, 8A:5-11 |
Cemetery companies: property, trust funds, lands dedicated for cemetery purposes |
100% Exempt |
|
N.J. Stat. Ann § 17:18-12 |
Disability benefits |
100% Exempt |
|
N.J. Stat. Ann § 17:44B-1, et seq. |
Fraternal benefit societies benefits |
100% Exempt |
|
N.J. Stat. Ann § 17B:24-6 |
Life Insurance Proceeds |
100% Exempt |
|
N.J. Stat. Ann § 17B:24-7 |
Annuity Contract Proceeds |
$500 per month |
|
N.J. Stat. Ann § 17B:24-8 |
Health Insurance and Disability Benefits |
100% Exempt |
|
N.J. Stat. Ann § 17B:24-9 |
Group Life Insurance Proceeds |
100% Exempt |
|
N.J. Stat. Ann §§ 18A:66-51, 18:13-112.53 |
Pension- Teachers |
100% Exempt |
|
N.J. Stat. Ann §§ 18A:66-116, 18:5-80 |
Pension-School Employees |
100% Exempt |
|
N.J. Stat. Ann §§ 34:15-29; 25:2-1, et seq. |
Workers Compensation |
100% Exempt |
|
N.J. Stat. Ann § 38A:4-8 |
Pay, Disability or Death Benefits for Military |
100% Exempt |
|
N.J. Stat. Ann § 42:1A-11, et seq. |
Property of Business Partnership |
100% Exempt |
|
N.J. Stat. Ann § 43:6A-41 |
Pension-Judicial |
100% Exempt |
|
N.J. Stat. Ann § 43:7-13 |
Pension-Prison Employee |
100% Exempt |
|
N.J. Stat. Ann § 43:8A-20 |
Pension-Alcohol Control Officers |
100% Exempt |
|
N.J. Stat. Ann §§ 43:10-14, 43:13-9, 43:13-22.60 |
Pension-City Employees |
100% Exempt |
|
N.J. Stat. Ann §§ 43:10-18.22, 10-18.71 |
Pension-County Workers |
100% Exempt |
|
N.J. Stat. Ann § 43:10-57 |
Pension-Probation Officers |
100% Exempt |
|
N.J. Stat. Ann § 43:10-105 |
Pension-Court Interpreters |
100% Exempt |
|
N.J. Stat. Ann § 43:13-37.5 |
Pension-Village Employees |
100% Exempt |
|
N.J. Stat. Ann § 43:13-44 |
Pension-Municipal Employees |
100% Exempt |
|
N.J. Stat. Ann § 43:15A-53 |
Pension & Annuities -Public Employees |
100% Exempt |
|
N.J. Stat. Ann §§ 43:16-7, 43:16A-17 |
Pension-Police Officers, Fire Fighters |
100% Exempt |
|
N.J. Stat. Ann § 43:18-12 |
Pensions-City Boards of Health |
100% Exempt |
|
N.J. Stat. Ann § 43:19-17 |
Pension-Street & Water Dept. |
100% Exempt |
|
N.J. Stat. Ann § 43:21-53 |
Unemployment Compensation |
100% Exempt |
|
N.J. Stat. Ann § 44:7-35 |
Old-Age Assistance |
100% Exempt |
|
N.J. Stat. Ann § 52:4B-30 |
Crime Victim Compensation |
100% Exempt |
|
N.J. Stat. Ann § 53:5A-45 |
Pension-Police |
100% Exempt |
|
N.J. Stat. Ann § App. A:9-57.6 |
Injury, medical, pension, and death benefits for civil defense workers |
100% Exempt |
If you are interested in filing for bankruptcy, and are unsure if the federal exemptions or the New Jersey exemptions are more advantageous to you, please contact one of our experienced attorneys for a free consultation.
Whether you need to completely eliminate your debt through Chapter 7 bankruptcy, or need to reorganize your credit payments through Chapter 13 or Chapter 11, we are well qualified as a full-service bankruptcy law firm for people in these and other New Jersey counties: Passaic County, Hudson County, Essex County, Bergen County, Morris County, and Sussex County. Call us today at 973-870-0434 or toll free 888-412-5091.
