It’s important to know what exemptions are available if you are considering filing for bankruptcy, although of course the exemptions vary from state to state. Here are the current New Jersey exemptions, according to bankruptcy attorney Benjamin Ginter, who runs the Law Offices of Benjamin J. Ginter in Cranford, New Jersey.
The amount, as well as the type, of bankruptcy exemptions is determined by either federal or state law. Here are the current federal bankruptcy exemptions. Note that you can look online to see what the federal exemptions are but for the most up-to-date information you should check with your bankruptcy lawyer for a full federal and state exemptions list.
Exemptions vary from state to state, but to give you an idea of what to expect in your state, look below. Here’s what the State of New Jersey has exempted the property and income from seizure by the bankruptcy court to pay creditors:
Real Property: None
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]
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].
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].
Public Benefits / Entitlements: Workers compensation, unlimited amt [34:15-29]; unemployment compensation, unlimited amt [43:21-53]; crime victims compensation, unlimited amt [43:21-53]; aid to aged and permanent disability benefits [44:7-35].
Wages: 90% of earned but unpaid wages if income under $7,500. Otherwise court decides amount [2A:17-56].
Miscellaneous: Business partnership property, unlimited amount [42:1-25].
