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Scura, Wigfield, Heyer, Stevens & Cammarota Blog

Using New Jersey Bankruptcy Exemptions

[fa icon="clock-o"] February 5, 2018 [fa icon="user"] Guillermo J. Gonzalez [fa icon="folder-open'] Bankruptcy

jewelry and cash on tableWhen 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.

Schedule a Free Bankruptcy Consultation Today!

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.

Need Help? Contact Us Today!

 

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