NEW JERSEY BANKRUPTCY LAW

New Jersey Bankruptcy: Attorneys, Statistics, Exemptions and Courts.

New Jersey Bankruptcy Statistics: In 2009, in New Jersey, 36,233 bankruptcies were filed. Business bankruptcies accounted for a tiny 1,571 of the total filed, while personal bankruptcies accounted for 34,662 or 95.66%.

New Jersey State Bankruptcy Exemptions

Real Estate

There is no homestead exemption.

Burial plots; however, are entirely exempt.

Personal Property

The following items are exempt wholly or partially when filing bankruptcy in New Jersey:

1. Clothing are wholly exempt
2. Furniture and domestic goods are exempt for a sum up to $1,000
3. Personal property, including stock or interest in a corporation are exempt for a sum up to $1,000

Insurance

The following categories of insurance benefits are exempt in New Jersey bankruptcy:

1. Life Insurance
   • Proceeds and avails are wholly exempt
     • If the debtor is not the insured party
     • If the insurance has a valid clause prohibiting payment of any proceeds to creditors of the beneficiary
2. The following insurance policies are entirely exempt
   • Group health and life insurance
   • Health benefits
   • Military disability or death benefits
   • Civil defense workers disability, death, medical and hospital benefits
3. Annuity payments are exempt for a sum up to $500 per month

Pensions

New Jersey recognizes all applicable federal pension exemptions.

The following individuals’ pensions are wholly exempt:

1. Teachers and School district employees
2. Judges
3. Prison employees
4. Alcohol beverage control officers
5. County, municipal, and public employees
6. Police, State police, firefighter, and traffic officers
7. City employee who receive ERISA-qualified benefits
8. City board of health employees
9. Street and water department employees
10. Civil defense workers

Public Benefits

The following public benefits are exempt when filing bankruptcy in New Jersey:

1. Workers’ compensation benefits
2. Unemployment compensation benefits
3. Permanent disability or old age benefit

Tools of trade: No

Wages

Unpaid wages are exempt at 90% of the income, when the income is less than 250% of the federal poverty level and 75% when the income is more than 250% of the poverty line.

Wildcard: No

Federal Bankruptcy Exemptions: Yes

New Jersey Bankruptcy Courts:

United States Bankruptcy Court in New Jersey has jurisdiction over the entire state.