Bankruptcy Exemptions In New Jersey

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Bankruptcy Exemptions In New Jersey


Knowing what exemptions are available is important for people who are going to file for bankruptcy. Keep in mind, however, that along with federal exemptions, there are also state ones, which vary from state to state. Bankruptcy attorney Benjamin Ginter runs the Law Offices of Benjamin J. Ginter in Cranford, New Jersey. Here, he lists the current exemptions in New Jersey.

You may choose to use either the federal or state exemptions when you file for bankruptcy. The amount of bankruptcy exemptions is determined by either federal or state law. Each state has its own bankruptcy exemptions, and the state of New Jersey has exempted the property and income below from seizure by the bankruptcy court to pay creditors:

1.      Real Property


2.      Wages

90% of earned but unpaid wages if income under $7,500. Otherwise court decides amount [2A:17-56].

3.      Personal Property

Furniture and household goods up to $1,000 [2A:26-4]; clothing, unlimited amount [2A:17-19]; burial plots, unlimited amount [8A:5-10]; any personal property or stock in corporation up to $1,000 total [2A:17-19].

4.      Public Benefits / Entitlements

Workers compensation, unlimited amount [34:15-29]; unemployment compensation, unlimited amount [43:21-53]; crime victims compensation, unlimited amount [43:21-53]; aid to aged and permanent disability benefits [44:7-35].

5.      Insurance / Annuities

Annuity contract proceeds to $500 per month [17B:24-7]; group life or health policy or proceeds, unlimited amount [17B:24-9]; disability, death, medical or hospital benefits for civil defense workers, unlimited amount [A:9-57.6]; health or disability benefits, unlimited amount [17:18-12 and 17B:24-8]; life insurance proceeds if proceeds cannot be used to pay beneficiary’s creditors, unlimited amount [17B:24-10]; life insurance proceeds if debtor is not the insured [17B:24-6(b)]; military disability or death benefits, unlimited amount [38A:4-8].

6.      Pensions / Retirement Plans

Retirement benefits, unlimited amount [43:13-9]; teachers, unlimited amount [18A:66-51]; alcohol beverage control officers, unlimited amount [43:8A-20]; county employees, unlimited amount [43:10-57 and 43:10-105]; firefighters and police officers, unlimited amount [43:16-7]; city board of health employees, unlimited amount [43:18-12]; civil defense workers, unlimited amount [A:9-57.6]; judges, unlimited amount [43:6A-41]; municipal employees, unlimited amount [43:13-44]; prison employees, unlimited amount [43:7-13]; public employees, unlimited amount [43:15A-53]; school district employees, unlimited amount [18A:66-116]; state police, unlimited amount [53:5A-45]; street and water department employees, unlimited amount [43:19-17]; traffic officers, unlimited amount [43:16A-17].

7.      Miscellaneous

Business partnership property, unlimited amount [42:1-25].

You can always look online to see what the exemptions are. But for the most updated information, you should check with your bankruptcy lawyer for a full federal and state exemption list.  

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