Bankruptcy Exemptions (Disclaimer: Exemption values below are subject to change)
Federal Bankruptcy Exemptions
The federal bankruptcy exemptions are a list of exemptions created by Congress that are available to bankruptcy filers in certain states.
Bankruptcy exemptions determine what you are allowed to keep during and after Chapter 7 bankrupty. If property (such as your home, car, or musical instrument) is exempt, you may keep it. In Chapter 13 bankruptcy, exemptions determine how much you must pay certain creditors through your payment plan.
The amounts allowed under the federal bankruptcy exemptions are adjusted every three years ending on April 1 to reflect changes in the Consumer Price Index. The federal bankrutpcy exemptions were last adjusted in 2016.
If you are married and filing jointly, you may double all of the federal bankruptcy exemptions. For example, you may claim a homestead exemption of $47,350 (which is double the listed homestead exemption amount of $23,675).
If a dollar amount does not accompany a listed piece of property, the entire value of the property is exempt.
All code references are to 11 U.S.C. (Title 11 of the United States Code).
Homestead
522(d)(1), (5) - Real property, including mobile homes and co-ops, or burial plots up to $25,150. Unused portion of homestead, up to $12,575 may be used for other property.
Personal Property
522(d)(2) - Motor vehicle up to $4,000.
522(d)(3) - Animals, crops, clothing, appliances and furnishings, books, household goods, and musical instruments up to $625 per item, and up to $13,400 total.
522(d)(4) - Jewelry up to $1,700.
522(d)(9) - Health aids.
522(d)(11)(B) - Wrongful death recovery for person you depended upon.
522(d)(11)(D) - Personal injury recovery up to $25,150 except for pain and suffering or for pecuniary loss.
522(d)(11)(E) - Lost earnings payments.
Pensions
522(b)(3)(C) - Tax exempt retirement accounts (including 401(k)s, 403(b)s, profit-sharing and money purchase plans, SEP and SIMPLE IRAs, and defined benefit plans).
522(b)(3)(C)(n) - IRAS and Roth IRAs to $1,362,800.
Public Benefits
522(d)(10)(A) - Public assistance, Social Security, Veteran’s benefits, Unemployment Compensation.
522(d)(11)(A) - Crime victim’s compensation.
Tools of Trade
522(d)(6) - Implements, books and tools of trade, up to $2,525.
Alimony and Child Support
522(d)(10)(D) - Alimony and child support needed for support.
Insurance
522(d)(7) - Unmatured life insurance policy except credit insurance.
522(d)(8) - Life insurance policy with loan value up to $13,400.
522(d)(10)( C ) - Disability, unemployment or illness benefits.
522(d)(11)( C ) - Life insurance payments for a person you depended on, which you need for support.
Wildcard
522(d)(5) - $1,325 of any property, and unused portion of homestead up to $12,575.
The federal bankruptcy exemptions are a list of exemptions created by Congress that are available to bankruptcy filers in certain states.
Bankruptcy exemptions determine what you are allowed to keep during and after Chapter 7 bankrupty. If property (such as your home, car, or musical instrument) is exempt, you may keep it. In Chapter 13 bankruptcy, exemptions determine how much you must pay certain creditors through your payment plan.
The amounts allowed under the federal bankruptcy exemptions are adjusted every three years ending on April 1 to reflect changes in the Consumer Price Index. The federal bankrutpcy exemptions were last adjusted in 2016.
If you are married and filing jointly, you may double all of the federal bankruptcy exemptions. For example, you may claim a homestead exemption of $47,350 (which is double the listed homestead exemption amount of $23,675).
If a dollar amount does not accompany a listed piece of property, the entire value of the property is exempt.
All code references are to 11 U.S.C. (Title 11 of the United States Code).
Homestead
522(d)(1), (5) - Real property, including mobile homes and co-ops, or burial plots up to $25,150. Unused portion of homestead, up to $12,575 may be used for other property.
Personal Property
522(d)(2) - Motor vehicle up to $4,000.
522(d)(3) - Animals, crops, clothing, appliances and furnishings, books, household goods, and musical instruments up to $625 per item, and up to $13,400 total.
522(d)(4) - Jewelry up to $1,700.
522(d)(9) - Health aids.
522(d)(11)(B) - Wrongful death recovery for person you depended upon.
522(d)(11)(D) - Personal injury recovery up to $25,150 except for pain and suffering or for pecuniary loss.
522(d)(11)(E) - Lost earnings payments.
Pensions
522(b)(3)(C) - Tax exempt retirement accounts (including 401(k)s, 403(b)s, profit-sharing and money purchase plans, SEP and SIMPLE IRAs, and defined benefit plans).
522(b)(3)(C)(n) - IRAS and Roth IRAs to $1,362,800.
Public Benefits
522(d)(10)(A) - Public assistance, Social Security, Veteran’s benefits, Unemployment Compensation.
522(d)(11)(A) - Crime victim’s compensation.
Tools of Trade
522(d)(6) - Implements, books and tools of trade, up to $2,525.
Alimony and Child Support
522(d)(10)(D) - Alimony and child support needed for support.
Insurance
522(d)(7) - Unmatured life insurance policy except credit insurance.
522(d)(8) - Life insurance policy with loan value up to $13,400.
522(d)(10)( C ) - Disability, unemployment or illness benefits.
522(d)(11)( C ) - Life insurance payments for a person you depended on, which you need for support.
Wildcard
522(d)(5) - $1,325 of any property, and unused portion of homestead up to $12,575.
New Jersey Bankruptcy Exemptions
Unless otherwise noted, all law references are to the New Jersey Statutes Annotated.
Homestead
None. However, survivorship interest of spouse in property held as tenancy by the entirety is exempt from creditors of the other spouse.
Personal Property
2A:17-19 - Clothing; goods, personal property, and stock or interest in corporations up to $1,000 total.
2A:26-4 - Household good and furniture up to $1,000.
45:27-21 - Burial plots.
Wages
2A:17-56 - 90% of earned but unpaid wages if your annual income is less than 250% of the federal poverty level. If income is higher, 75%.
38A:4-8 Military personnel wages and allowances.
Pensions
11 U.S.C. § 522 - Tax exempt retirement accounts (including 401(k)s, 403(b)s, profit-sharing and money purchase plans, SEP and SIMPLE IRAs, and defined benefit plans).
11 U.S.C. § 522(b)(3)(C)(n) - IRAS and Roth IRAs to $1,283, 025.
A:9-57.6 - Civil defense workers.
18A:66-51 - Teachers.
18A:66-116 - School district employees.
25:2-1 - Trust containing personal property if it was created pursuant to federal tax law.
43:6A-41 - Judges.
43:7-13 - Prison employees.
43:8A-20 - Alcohol beverage control officers.
43:10-57 & 43:10-105 - County employees.
43:13-9 - City workers' ERISA-qualified benefits.
43:13-44 - Municipal employees.
43:15A-53 - Public employees.
43:16-7 & 43:16A-17 - Police officers, firefighters, and traffic officers.
43:18-12 - City boards of health employees.
43:19-17 - Street and water department employees.
53:5A-45 - State police.
Public Benefits
34:15-29 - Workers' compensation.
43:21-53 - Unemployment compensation.
44:7-35 - Old-age, permanent disability assistance.
52:4B-64 - Crime victims' compensation.
Insurance
A:9-57.6; App. A:9-57.6 - Civil defense workers' disability, death, medical or hospital benefits.
17:18-12 & 17B:24-8 - Health and disability benefits.
17B:24-6b - Life insurance proceeds, dividends, interest, loan, cash, or surrender value, if not the insured.
17B:24-7 - Annuity contract proceeds up to $500 per month.
17B:24-9 - Group life or health policy or proceeds.
17B:24-10 - Life insurance proceeds if policy prohibits use to pay creditors.
38A:4-8 - Military member disability or death benefits.
17:44B-1 - Fraternal benefit society benefits.
Other
42:1A-11 - Partnership property.
Add any applicable Federal Nonbankruptcy Exemptions.
Unless otherwise noted, all law references are to the New Jersey Statutes Annotated.
Homestead
None. However, survivorship interest of spouse in property held as tenancy by the entirety is exempt from creditors of the other spouse.
Personal Property
2A:17-19 - Clothing; goods, personal property, and stock or interest in corporations up to $1,000 total.
2A:26-4 - Household good and furniture up to $1,000.
45:27-21 - Burial plots.
Wages
2A:17-56 - 90% of earned but unpaid wages if your annual income is less than 250% of the federal poverty level. If income is higher, 75%.
38A:4-8 Military personnel wages and allowances.
Pensions
11 U.S.C. § 522 - Tax exempt retirement accounts (including 401(k)s, 403(b)s, profit-sharing and money purchase plans, SEP and SIMPLE IRAs, and defined benefit plans).
11 U.S.C. § 522(b)(3)(C)(n) - IRAS and Roth IRAs to $1,283, 025.
A:9-57.6 - Civil defense workers.
18A:66-51 - Teachers.
18A:66-116 - School district employees.
25:2-1 - Trust containing personal property if it was created pursuant to federal tax law.
43:6A-41 - Judges.
43:7-13 - Prison employees.
43:8A-20 - Alcohol beverage control officers.
43:10-57 & 43:10-105 - County employees.
43:13-9 - City workers' ERISA-qualified benefits.
43:13-44 - Municipal employees.
43:15A-53 - Public employees.
43:16-7 & 43:16A-17 - Police officers, firefighters, and traffic officers.
43:18-12 - City boards of health employees.
43:19-17 - Street and water department employees.
53:5A-45 - State police.
Public Benefits
34:15-29 - Workers' compensation.
43:21-53 - Unemployment compensation.
44:7-35 - Old-age, permanent disability assistance.
52:4B-64 - Crime victims' compensation.
Insurance
A:9-57.6; App. A:9-57.6 - Civil defense workers' disability, death, medical or hospital benefits.
17:18-12 & 17B:24-8 - Health and disability benefits.
17B:24-6b - Life insurance proceeds, dividends, interest, loan, cash, or surrender value, if not the insured.
17B:24-7 - Annuity contract proceeds up to $500 per month.
17B:24-9 - Group life or health policy or proceeds.
17B:24-10 - Life insurance proceeds if policy prohibits use to pay creditors.
38A:4-8 - Military member disability or death benefits.
17:44B-1 - Fraternal benefit society benefits.
Other
42:1A-11 - Partnership property.
Add any applicable Federal Nonbankruptcy Exemptions.