Bankruptcy exemptions protect your property from your creditors.
You have two choices when filing for bankruptcy in New Jersey. When you file you can choose between using the state exemptions or federal exemptions. Determining which set of exemptions to use is a crucial decision. Federal exemptions are usually more favorable.
The federal bankruptcy exemptions available to New Jersey residents are as follows:
-Up to $23,675 in a house or real property
-Spousal and child support income
-Pensions
-Jewelry valued at up to $1,600
-Motor vehicles valued at up to $3,775
-Public benefits such as workers’ compensation or unemployment benefits
-Implements, books and tools of trade, up to $2,375.
-Wild card exemption up to $1,250 plus an additional $11,850 of any unused
portion of the home exemption
The following exemptions are available in New Jersey:
-Disability and health benefits
-No exemption for a home
-Pensions
-Clothing
-Personal property and company stock up to $1,000
-Furniture and other household goods up to $1,000
-Public benefits such as workers’ compensation or unemployment benefits
-Wages unpaid but already earned
-Life insurance proceeds from a spouse
Your bankruptcy attorney can help you to evaluate and choose which set of exemptions to claim in your bankruptcy case. Call today for a free consultation.