New Jersey State Bankruptcy Laws

What Are The New Jersey Bankruptcy Exemptions?

New JerseyNew Jersey law protects all or a portion of your property from being seized by creditors or the bankruptcy trustee in a Chapter 7 bankruptcy. In a Chapter 13 bankruptcy, you are generally allowed to keep all of your assets and property. Certain exceptions may apply, so it’s wise to consult with a New Jersey bankruptcy attorney to find which of your assets will be protected in a bankruptcy filed in New Jersey. In general, the major New Jersey bankruptcy exemptions include:

Real Estate (the Homestead Exemption)
No specific homestead exemption.
No specific automobile exemption.
Other Property
Furniture and household goods up to $1,000 in value; burial plots; clothing; other personal property up to $1,000 in value.In New Jersey, you have the choice of electing the federal exemption statutes rather than the New Jersey state exemptions. Consult with a New Jersey bankruptcy attorney for more details.
View the complete list of New Jersey bankruptcy exemptions

Please remember that this page provides general information only, and is not intended to provide legal advice. The information is not a substitute for the advice of a qualified bankruptcy attorney. If you need legal assistance, consult an attorney.

Which state’s exemption laws apply in your bankruptcy?

New JerseyGenerally, the laws of the state in which you lived for the 730 days (2 years) prior to filing a bankruptcy petition will apply in your bankruptcy.

If you have not lived in the same state for the 2 years immediately prior to filing your bankruptcy petition, the laws of the state in which you lived for the majority of the 180-day period preceding the 2-year period will likely apply.

If application of the preceding general rules renders you ineligible for exemptions under any states laws, you may be allowed to choose the federal exemptions applicable in your bankruptcy.

Is New Jersey a Community Property State?

No, New Jersey is not a community property state. Because it is not a community property state, you will be responsible for your spouses debts only if you voluntarily assumed those debts by, for example, co-signing on a loan given to your spouse. In a non-community property state, one spouse can file for bankruptcy and be eligible to eliminate all of their unsecured debts without the involvement of the other spouse.

How did your senator vote on the new bankruptcy laws?

Following years of intense lobbying by creditors, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). How did your Senators vote on these largely pro-creditor provisions?

Corzine (D-NJ) – NAY
Lautenberg (D-NJ) – NAY

New Jersey Bankruptcy Court Locations:

US Bankruptcy Court,
District of New Jersey

401 Market Street
Camden, NJ 08101
Phone (856) 757-5485

US Bankruptcy Court,
District of New Jersey
Martin Luther King, Jr. Federal Building

50 Walnut Street
Newark, NJ 07102
Phone (973) 645-4764

Clarkson S. Fisher US Courthouse
402 East State Street
Trenton, NJ 08608
Phone (609) 989-2129

Note: You may not have to actually go to one of the above bankruptcy courts. Trustees often conduct your meeting at a local venue.

Although bankruptcy is federal law, the bankruptcy courts in each jurisdiction have local rules that must be followed. A local bankruptcy attorney will be familiar with the specific rules in your area.

New Jersey Bankruptcy Attorney Locations:

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Natalie Conatser

Author: Natalie Conatser

Natalie is a finance professor who writes all about finance as a blog contributor. She is a board certified accountant and also knows a thing or two about debt and avoiding bankruptcy. Natalie plans on touring the US to speak about personal finance.

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