Bankruptcy Exemptions

Exempt properties under Bankruptcy Code?

When an individual debtor files bankruptcy in the State of New Jersey, he or she is entitled to retain various assets as part of the bankruptcy. A debtor filing bankruptcy must choose either the Federal or State exemptions.
The following property may be exempt pursuant to 11 USC § 522:

1. Home up to $17,425.00 in equity;
2. Disability or unemployment benefits;
3. Life insurance policy with loan value up to $9300.00;
4. Alimony and child support;
5. Most pensions and some IRAs (401 K plans are also protected and under New Jersey law do not even become part of the bankruptcy estate. Evans v. Evans, 2001 WL 1711048 [N.J. Super. Ch.]. IRAs that qualify are also excluded from the bankruptcy estate. Yuhas v. Orr, 104 F.3d 612 [1997]);
6. Personal items such as clothes, appliances, books, furniture, household goods, and musical instruments up to $450.00 per item, not to exceed a total of $9300.00;
7. Jewelry up to $1150.00;
8. Motor vehicles up to $2775.00;
9. Personal injury recoveries to $17,425;
10. Additional personal injury recoveries if in compensation for loss of future earnings. In the Matter of R. Scotti, 245 B.R. 17 (2000);
11. Other payments in compensation for loss of future earnings;
12. Workers' compensation benefits. Evans v. Casarow, 29 B.R. 336 (1983);
13. Wrongful death recoveries for an individual you depend on;
14. Public benefits including unemployment, social security, public assistance, veteran's benefits, and crime victim's compensation;
15. Tools of trade up to $1750.00;
16. "Wild card" exemption up to $9650.00 of any property. It can be used only to the extent that a home is not exempted. For instance, a debtor who owns no real property has a car worth $10,000 and a diamond ring of equivalent value. The ring or the car may be retained, but not both.