New Jersey Bankruptcy Exemptions

New Jersey is a dual-choice state, so debtors filing bankruptcy here can choose either **New Jersey**-specific exemptions or the **federal** set. Below is a summary of **common** NJ exemptions. Always consult a licensed New Jersey bankruptcy attorney or the official statutes for exact, up-to-date amounts and interpretations.

Note: There is no specific homestead exemptionin New Jersey’s statutes; many residents use the federal homestead exemption instead if it’s more beneficial.

Asset / Type of PropertyExemption DescriptionStatute / CodeNotes
HomesteadNo specific homestead exemption under NJ law. Many filers instead use the **federal** homestead if choosing federal exemptions.--
Annuity Contract ProceedsUp to \$500/month (some references).N.J. Stat. § 17B:24-7
Disability or Death Benefits for Military MemberFully exempt.N.J. Stat. § 38A:4-8
Disability, Death, Medical, or Hospital Benefits for Civil Defense WorkersFully exempt.N.J. Stat. App. A:9-57.6
Fraternal Benefit Society BenefitsFully exempt (some references up to certain amounts).N.J. Stat. § 17:44A-19
Group Life or Health Policy / ProceedsFully exempt.N.J. Stat. § 17B:24-9
Health or Disability BenefitsGenerally exempt from creditors.N.J. Stat. §§ 17:18-12, 17B:24-8
Life Insurance Proceeds if Clause Prohibits Paying Beneficiary’s CreditorsFully exempt.N.J. Stat. § 17B:24-10
Life Insurance Proceeds / Avails if You’re Not the InsuredFully exempt.N.J. Stat. § 17B:24-6b
Property of Business PartnershipExempt from an individual partner’s creditors.N.J. Stat. § 42:1-25
Various Public Employees (Alcohol beverage control officers, city board employees, civil defense, county employees, firefighters, police, traffic officers, judges, municipal employees, prison employees, general public employees, school district employees, state police, street/water dept. employees, teachers)Pension/retirement benefits generally exempt.N.J. Stat. §§ 43:8A-20, 43:18-12, App. A:9-57.6, 43:10-57, 43:10-105, 43:13-9, 43:16-7, 43:16A-17, 43:6A-41, 43:13-44, 43:7-13, 43:15A-53, 18A:66-116, 53:5A-45, 43:19-17, 18A:66-51NJ has multiple local retirement systems; these generally have exemption provisions.
ERISA-Qualified BenefitsExempt if needed for support (some references).-- (Referenced as “513.430(10)(e)” in original?)Check federal law plus any NJ statute references.
Trust Containing Personal Property Created Under Federal LawExempt unless fraudulent conveyance or debt is for child support/alimony.N.J. Stat. § 25:2-1
Goods, Chattels, Personal Property, Stock or Interest in CorporationsUp to \$1,000 total.N.J. Stat. §§ 2A:17-19, 2A:26-4Some references mention “any personal property” up to \$1,000.
Burial PlotsExempt for family use.N.J. Stat. § 8A:5-10
ClothingFully exempt if needed.N.J. Stat. § 2A:17-19
Furniture & Household Goods to \$1,000Limit on total essential household property.N.J. Stat. § 2A:26-4
Crime Victims’ CompensationFully exempt from creditors.N.J. Stat. § 52:4B-30
Old-Age, Permanent Disability AssistanceFully exempt.N.J. Stat. § 44:7-35
Unemployment CompensationFully exempt.N.J. Stat. § 43:21-53
Workers’ CompensationFully exempt.N.J. Stat. § 34:15-29
Tools of TradeNone specified beyond the \$1,000 personal property limit, though some might interpret partial coverage within that limit.--
WagesUp to **90%** if income < \$7,500/year; if income > \$7,500, a judge decides the exempt portion. Wages or allowances of military personnel also exempt.N.J. Stat. §§ 2A:17-56, 38A:4-8
WildcardNone (no separate wildcard in NJ statutes).--

Disclaimer

This summary is for general information only and does not constitute legal advice. Exemption laws and amounts may change or be interpreted differently by courts. Always consult a licensed New Jersey bankruptcy attorney or refer to the official statutes for the most accurate, up-to-date amounts and eligibility.