New Jersey Bankruptcy Exemptions
Federal bankruptcy exemptions available? YES
The New Jersey exemptions are unusual because they don’t contain any homestead exemption for people who own their home. Nevertheless, the New Jersey courts have held that creditors can’t take real property that belongs to spouses who hold it as a tenancy by the entirety when only one spouse is a debtor. Tenancy by entirety means both spouses have equal interest in the property, as well as equal rights of possession. Courts have also held that New Jersey residents who opt for the state exemptions can exempt all their IRAs and higher education trusts, not just the amounts excluded or exempted under the federal exemptions.
The references to state statutes are to the New Jersey Statutes Annotated.
Resources:
United States Bankruptcy Court, District of New Jersey
New Jersey Bankruptcy Attorneys
| New
Jersey Bankruptcy Exemptions |
|
|
| Assets |
Exemption |
State Statute |
| Homestead |
No exemption. |
|
| Insurance |
Disability benefits: all. |
17:18-12 |
|
Health or disability benefits: all. |
17:18-12; 17B:24-8 |
|
Life insurance proceeds/avails: all if the debtor is not the insured. |
17B:24-6b |
|
Annuity payments: up to $500 a month. |
17B:24-7 |
|
Group life or health policy/proceeds: all. |
17B:24-9 |
|
Life insurance proceeds: all if there is a clause forbidding the proceeds
to be used to pay the creditors of the beneficiary. |
17B:24-10 |
|
Military disability or death benefits: all. |
38A:4-8 |
|
Civil defense worker disability, death, medical, and hospital benefits:
all. |
App.A-9-57.6 |
| Pensions |
Federal pension exemptions. |
|
|
Teacher pensions: all. |
18A:66-51 |
|
School district employee pensions: all. |
18A:660116 |
|
Judge pensions: all. |
43:6A-41 |
|
Prison employee: all. |
43:7-13 |
|
Alcohol beverage control officer pension: all. |
43:8A-20 |
|
County employee pensions: all. |
43:10-57; 43:10-105 |
|
City employee ERISA-qualified benefits: all. |
43.13-9 |
|
Municipal employee pensions: all. |
43:13-44 |
|
Public employee pensions: all. |
43:15A-53 |
|
Police, firefighter, and traffic officer pensions: all. |
43:16-7; 43:16A-17 |
|
City board of health employee pensions: all. |
43:18-12 |
|
Street and water department employee pensions: all. |
43:19-17 |
|
State police pensions: all. |
53:5A-45 |
|
Civil defense worker pensions: all. |
App. A:9-57.6 |
| Personal Property |
Clothing: all. |
2A:17-19 |
|
Any personal property and stock or interest in any corporation: up to
$1,000 in total. |
2A:17-19 |
|
Furniture and
other household goods: up to $1,000.< |
2A:26-4 |
|
Burial plots: all. |
45:27-21 |
| Public Benefits |
Workers’ compensation benefits: all. |
34:15-29 |
|
Unemployment compensation benefits: all. |
43:21-53 |
|
Permanent disability or old age benefits: all. |
44:7-35 |
| Tools of Your Trade |
No exemption. |
|
| Wages |
Wages, earned but unpaid: 90% of an income that is less than 250% of the
federal poverty level; 75% of an income that is more than 250% of the federal
poverty level. |
2A:17-56 |
|
Allowances or wages of military personnel: all. |
38A:4-8 |
| Wildcard |
No exemption. |
|
|
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