What Can You Keep in a Chapter 7 Bankruptcy in New Jersey?
If you're considering Chapter 7 bankruptcy, one of the biggest worries is whether you’ll lose your property. The good news: most New Jersey filers keep everything they own. That’s because federal bankruptcy exemptions — which NJ allows you to use — protect most assets.
What You Can Keep
Your Home
You can protect up to $27,900 in home equity ($55,800 for married couples). Most NJ homeowners don’t exceed this amount, so their homes remain protected.
Your Car
You may exempt up to $4,450 in vehicle equity. If you have a loan, your equity is usually low enough to keep the car.
Personal Belongings
Furniture, clothing, electronics, and appliances are generally protected under exemptions totaling $14,875 (up to $700 per item). Since these items have low resale value, they are rarely taken.
Retirement Accounts
401(k)s, IRAs, pensions, and other retirement savings are fully or nearly fully exempt.
Life Insurance
Term policies are fully protected. Cash-value policies receive partial protection depending on the amount.
Jewelry
You may keep up to $1,875 in jewelry — often enough to cover wedding rings and sentimental items.
Tools You Need for Work
You may protect up to $2,800 in tools or equipment.
Wildcard Exemption
You can use this flexible exemption to protect up to $15,425 in any property — including cash or extra equity in a vehicle.
Wages & Benefits
Your future wages, Social Security, disability benefits, unemployment, and public assistance are all fully protected.
Will You Lose Anything?
Most Chapter 7 cases in New Jersey are “no-asset” cases — meaning the filer loses nothing. Only high-value, non-exempt property is at risk, and a bankruptcy attorney can often help you plan to protect it.
The Bottom Line
Chapter 7 gives many people a true fresh start while keeping:
✔ Their home
✔ Their car
✔ Their household belongings
✔ Their retirement accounts
✔ Their wages and benefits
If you're unsure what exemptions apply to your situation, Simon Law Group LLC can guide you and explain exactly what you can keep.
Call today 800-709-1131 for your free consultation or text us at 908-864-4450
