New Jersey Bankruptcy Exemptions

The State of New Jersey has both state and federal bankruptcy exemptions available. There is property that you can exempt or protect from creditors when you file bankruptcy. You have the option of utilizing the state or federal exemptions. After filing for bankruptcy, this property is safe. Be aware that there are certain debts, which you will not be able to erase in bankruptcy. These are non-dischargeable debts.

There are some limits on certain exemptions such as equity that you have in a home or in a vehicle. The difference between the cost of the item and the amount owed on the item is the definition of equity. A debtor must generally pay the trustee the value of the non-exempt property to keep the property. If you choose to keep the property, continual timely payments ensures protection of the property through bankruptcy.

This is a list of some of the available exemption in the State of New Jersey. You can obtain and more detailed list of exemptions by contacting a qualified New Jersey bankruptcy lawyer in your area. They will be able to list and explain all of the state exemptions. There is certain property, which is excluded or exempt that the debtor can keep based on their specific situation and personal income.

The best way to determine which exemptions to utilize is to meet with a qualified and proven bankruptcy attorney which can evaluate your individual case and guide you through the process. Contact an attorney today.


Homestead: None, except survivorship interest of a spouse in property held as tenancy by the entirety is exempt from creditors of a single spouse

Pensions: Tax-exempt retirement accounts, including 401(k)s, 403(b)s, profit sharing and money purchase plans, SEP and SIMPLE IRAs and defined benefit plans. Traditional and ROTH IRAs to $1,095,000 per person, Trust containing personal property created pursuant to federal tax law, including 401(k) plans, IRAs, Roth IRAs and 529-higher education savings plans, ERISA-qualified benefits for city employees, Firefighters, police officers, traffic officers, Street and water department employees, Alcohol beverage control officers, Civil defense workers, City board of health employees, County employees, Municipal employees, IRAs, Judges, State police, Teachers, School district employees, Public employees, Prison employees

Insurance: Life insurance proceeds or avails if you are not the insured, Life insurance proceeds if clause prohibits proceeds from being used to pay beneficiary’s creditors, Health or disability benefits, Annuity contract proceeds to $500 per person, Disability, death, medical or hospital benefits for civil defense workers, Disability benefits, Disability or death benefits for military members, Group life or health policy or proceeds

Personal Property: Clothing, Furniture and household goods to $1,000, Burial plots, Personal property and possessions of any kind, stock or interest in corporations to $1,000 total

Tools of Trade: None

Public Benefits: Workers’ compensation, Unemployment compensation, Old age, permanent disability assistance

Wages: 90% of earned but unpaid wages if annual income is less that 250% of federal poverty level; 75% if annual income is higher, Wages or allowances received by military personnel

Wildcard: None

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