National Divorce & Bankruptcy Center

New Jersey Bankruptcy Property Exemptions:
What You Can Keep

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EXEMPT PROPERTY: The property you can keep after bankruptcy.

Some property in many states is exempt regardless of its value i.e. "all personal possessions". Many states also have a 'wild card' exemption which can be applied to any type of property or split among several different items.

An exemption limit means that any equity above the limit is 'non-exempt'. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $4000 with a lien of $3500 has an equity value of only $500 subject to exemption.

To keep non-exempt property, a debtor must generally pay the trustee the value of the non exempt property to be distributed to creditors.

Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions doubling the exemptions. Unless otherwise noted in the following exemption list, married couples may double the exemption amount given.

Note: the value of property for bankruptcy exemption purposes has been generally accepted to be the Garage sale value of the property 

NEW  JERSEY STATE EXEMPTIONS

(Federal Bankruptcy exemptions are available)
Homestead None
Insurance Annuity contract proceeds to $500 per month
          Disability or death benefits for military member
          Disability, death medical or hospital benefits for civil defense workers
          Fraternal benefit society benefits
          Group life or health policy or proceeds
          Health or disability benefits
          Life insurance proceeds if clause prohibits proceeds from being used to pay
               beneficiary's creditors
          Life insurance proceeds or avail if you're not the insured

Miscellaneous Property of business partnership

Pensions  Alcohol beverage control officers
          City boards of health employees
          Civil defense workers
          County employees
          ERISA qualified benefits
          Firefighters, police officers, traffic officers
          Judges
          Municipal employees
          Prison employees 
          Public employees
          School district employees and Teachers

Personal  Goods and chattels, personal property and stock or interest in corporations to
Property       $1,000 total
          Burial plots 
          Clothing
          Furniture and household goods to $1,000
     
Public    Crime victims compensation                                                          
benefits  Old age, permanent disability assistance
          Unemployment compensation
          Worker's compensation

Tools of  None 
Trade

Wages     90% of earned but unpaid wages if income under $7,500 if wages over $7,500,
               bankruptcy judge decides amount that is exempt
              Wages or allowances received by military personnel