Minimizing the Loss of Property in a New Jersey Liquidation Proceeding
When you file for protection under Chapter 7 of the bankruptcy laws, you have the right to permanently discharge certain debts, so that you’ll never have to make payments on them again. In exchange for that benefit, the law requires that you transfer some of your assets to the bankruptcy court, to be sold to provide some compensation to your creditors. You won’t have to give up all your property, though.
The Property Exemptions in a Chapter 7 Bankruptcy Filing
When you seek to permanently rid yourself of certain debts through a Chapter 7 bankruptcy petition, you’ll be able to claim some of your assets as exempt from transfer. There are exemptions available under state laws and under federal law. You may claim either the federal exemptions or the state exemptions, but you cannot pick and choose from the two.
The State Exemptions in New Jersey
In New Jersey, you can claim up to $1,000 worth of personal property, as well as up to $1,000 in furniture and household goods. You can keep all your clothing and won’t have to give up your burial plot. You can also exclude compensation you received in court as the victim of a crime, as well as any work comp benefits, unemployment compensation and disability/retirement benefits. There is no exemption for your home.
The Federal Exemptions in Bankruptcy
Under federal laws, you can claim more than $22,000 in your interest in your home, as well as up to $12, 250 in household property. There’s a $1,550 exemption for personal jewelry, as well as a $11,500 “wildcard” exemption.
Contact Attorney Howard N. Sobel
At the office of Howard N. Sobel, we provide personal bankruptcy counsel to men and women throughout the state of New Jersey. Contact our office online or call us at 856-424-6400 to set up a free initial consultation. Evening and weekend appointments can be arranged upon request. We accept all major credit cards.
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