The Cassidy Law Firm Blog

Wednesday, June 25, 2014

New Jersey Bankruptcy Exemptions

If you are one of the millions of Americans struggling with debt that you have no realistic way of paying off it may be time to consider filing for bankruptcy protection. Over the last several years the number of bankruptcy petitions filed in the United States has reached historic levels, due in large part to the recession the country as a whole has suffered through. If you have been reluctant to consider filing bankruptcy because you are concerned you will lose all your hard-earned assets in the process it is time to learn more about chapter 7 bankruptcy in Monmouth County and the New Jersey bankruptcy exemptions.

Most individual (or married) debtors file for either chapter 13 bankruptcy or chapter 7 bankruptcy. For those who qualify, chapter 7 bankruptcy is typically the preferred option because chapter 7 bankruptcy results in the discharge, or elimination, of most debts in a relatively short period of time. A chapter 13 bankruptcy, in contrast, requires the debtor to repay most debts over an extended period of time. To file a chapter 7 bankruptcy  a debtor must pass the “means test” which compares the debtor’s income to that of similarly situated debtors in the same geographic area. If the debtor’s income is at, or below, the median for the area the debtor qualifies to file a chapter 7 bankruptcy.  Even if the debtor’s income is above the median income for the area it still might be possible to file for a Chapter 7 Bankruptcy in New Jersey.

In a chapter 7 bankruptcy the bankruptcy trustee is authorized to seize non-exempt assets of the debtor and sell them, using the profits to repay creditors. Exempt assets, however, are protected from sale. In New Jersey, a debtor may choose between using the New Jersey or the federal exemptions to protect assets during bankruptcy. Some commonly used New Jersey exemptions include:

  • Homestead – New Jersey doesn’t have a traditional homestead exemption; however, the survivorship interest of a spouse in property held as tenancy by the entirety is exempt.
  • Personal property — $1,000 in household goods, $1,000 in personal property, and all clothing.
  • Pensions and retirement benefits – Public employee pensions are 100 percent exempt.
  • Unemployment and workers’ compensation – 100 percent
  • Cemeteries and burial funds – most is 100 percent exempt

If you have specific questions or concerns about whether or not an asset is covered under the New Jersey bankruptcy exemptions, contact The Cassidy Law Firm for a free consultation with an experienced New Jersey bankruptcy attorney.  The Cassidy Law firm is located in Shrewsbury, New Jersey.  We service all of Monmouth County, Ocean County, Middlesex County, and all of New Jersey.  Contact The Cassidy Law Firm at 732-747-3999 to speak with an experience Monmouth County Bankruptcy Attorney.


*We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Archived Posts


© 2023 The Cassidy Law Firm LLC | Disclaimer
750 Broad Street, Suite 3, Shrewsbury, NJ 07702
| Phone: (732) 747-3999

Practice Area Overview | Personal Injury | Medical Malpractice | Workers' Compensation | Litigation | Contract & Business Law | Personal Bankruptcy | Mediation | Appellate Law Overview | Business Disputes Litigation | Mediation | Automobile Accidents | Our Attorneys | Significant Cases


© The Cassidy Law Firm LLC | Disclaimer | Privacy Policy | Law Firm Website Design by Zola Creative
750 Broad Street, Suite 3, Shrewsbury, NJ 07702 | Phone: 732.747.3999
Attorney Advertising
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.