Bankruptcy in New Jersey

None. New Jersey state law has no homestead exemption for the equity in your home.

Because the state list protects no home equity, the choice between the state list and the federal list matters most for homeowners. The federal amounts are on the federal page.

$31,575

Law: 11 U.S.C. 522(d)(1)

$5,025

Law: 11 U.S.C. 522(d)(2)

All wearing apparel, no dollar limit. Household goods and furniture up to $1,000 (except against a debt for buying them).

Law: N.J.S.A. 2A:17-19 (wearing apparel); N.J.S.A. 2A:26-4 (household goods and furniture)

Household goods: $800 per item, $16,850 total

Jewelry for personal or family use: $2,125

Law: 11 U.S.C. 522(d)(3); 11 U.S.C. 522(d)(4)

$1,000 in goods and chattels, shares of stock or corporate interests and personal property of any kind (not counting clothing)

Law: N.J.S.A. 2A:17-19

$1,675 plus up to $15,800 of any unused part of the (d)(1) homestead amount

Law: 11 U.S.C. 522(d)(5)

$3,175

Law: 11 U.S.C. 522(d)(6)

A creditor with a judgment can take only the smallest of: 10% of your gross weekly pay, 25% of your disposable earnings, or the amount by which your disposable weekly earnings exceed $217.50. If your disposable earnings are $217.50 a week or less, nothing can be taken. You can ask the court to reduce the amount.

Law: N.J.S.A. 2A:17-56; N.J.S.A. 15 U.S.C. 1673

Money in a 'qualifying trust' is exempt from all creditors and is kept out of the bankruptcy estate. That covers plans and accounts kept under federal tax law, such as 401(k) and 403(b) plans, IRAs and Roth IRAs, and 529 and Coverdell education accounts. Exceptions: child support, alimony, a qualified domestic relations order, fraudulent transfers, and punitive damages for murder or manslaughter. New Jersey public pensions are also exempt, including the Public Employees', Teachers', Police and Firemen's, State Police, Judicial, county and municipal retirement systems.

Law: N.J.S.A. 25:2-1(b); N.J.S.A. 43:15A-53; N.J.S.A. 18A:66-51; N.J.S.A. 43:16-7, 16A-17; N.J.S.A. 53:5A-45; N.J.S.A. 43:6A-41; N.J.S.A. 43:10-14; N.J.S.A. 43:13-9

No dollar limit (IRAs are capped under 522(n))

Money in traditional and Roth IRAs is protected up to $1,711,975 in total.

Law: 11 U.S.C. 522(d)(12); 11 U.S.C. 522(n); 90 FR 8941

Unemployment benefits are exempt from collection while not mixed with other money (except debts for necessities bought while you were unemployed). Workers' compensation payments are exempt from creditors. Old age assistance payments are exempt and do not pass to a bankruptcy trustee.

Law: N.J.S.A. 43:21-15(c), 43:21-53; N.J.S.A. 34:15-29; N.J.S.A. 44:7-35

Your right to receive Social Security, unemployment, public assistance, veterans' and disability benefits; alimony and support you reasonably need; and certain pension or annuity payments you reasonably need: No dollar limit (some only as much as you reasonably need)

Your right to certain payments: crime victim awards, wrongful-death and life-insurance payments for someone you depended on, personal bodily injury payments (not pain and suffering or actual money losses), and payments for lost future earnings: Crime-victim awards: no limit. Personal injury payment: up to $31,575. Others: as much as you reasonably need

Law: 11 U.S.C. 522(d)(10); 11 U.S.C. 522(d)(11)

• Life insurance proceeds payable to someone other than the insured are exempt; group life and group health insurance policies and proceeds are exempt. N.J.S.A. 17B:24-6, 17B:24-9
• Health insurance and disability benefit proceeds are exempt (a disability income benefit can be reached for necessities bought after the disability began). N.J.S.A. 17B:24-8
• Annuity payments are exempt up to $500 per month. N.J.S.A. 17B:24-7(a)(2)
• Land dedicated to cemetery purposes cannot be sold to collect a judgment. N.J.S.A. 45:27-20(e)

An unmatured life insurance policy you own (not credit life insurance): No dollar limit

Cash value of life insurance: $16,850

Health aids prescribed by a professional for you or a dependent: No dollar limit

Law: 11 U.S.C. 522(d)(7); 11 U.S.C. 522(d)(8); 11 U.S.C. 522(d)(9)