What property is non-exempt in New Jersey?

On Behalf of | Mar 21, 2024 | Bankruptcy

Bankruptcy can provide relief for individuals and businesses drowning in debt, offering a chance to restructure finances under court protection. In New Jersey, like elsewhere, assets fall into two categories during bankruptcy: exempt and non-exempt. Knowing the difference is crucial for those contemplating bankruptcy proceedings.

Exempt property in New Jersey

Exempt assets are shielded from seizure and sale during the bankruptcy process. New Jersey law offers a selection of exemptions, with the option to opt for federal exemptions instead. Key exemptions in New Jersey include clothing, burial plots, household goods, vehicles, certain pensions and public benefits.

Non-exempt property

Non-exempt assets can be sold to settle debts. In New Jersey, non-exempt property typically includes cash, investments, additional real estate, secondary vehicles and valuable collections that are outside the exemption limits.

Most importantly, our state does not have a bankruptcy homestead exemption. As such, if you have home equity to protect, you may have to choose the federal exemptions.

New Jersey also does not have a vehicle exemption. The federal exemption could be used, which is up to $4,000 per filer. Though, there is no limit to the amount of clothing that can be exempted under the state exemptions.


Understanding property exemptions is vital for New Jersey residents navigating bankruptcy, or for those thinking about entering the bankruptcy process. This is especially true as it relates to exemptions as New Jersey does not offer many of the exemptions that are offered by other states. This means that filers must choose between state exemptions and federal exemptions.


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