New Jersey Bankruptcy Exemptions
What property can you keep when filing Chapter 7 in New Jersey?
Federal exemption option available: New Jersey allows debtors to choose between state exemptions or the federal bankruptcy exemption schedule. You must pick one complete set.
New Jersey Homestead Protection
None
New Jersey does not provide a separate homestead exemption. Homeowners may use other exemptions or the wildcard to protect home equity.
New Jersey Exemption Table
2025/2026 figures — Chapter 7 bankruptcy
How to Claim Exemptions in New Jersey
To claim your New Jersey bankruptcy exemptions, you must list each exempt asset on Schedule C of your bankruptcy petition. You may choose between New Jersey's limited state exemptions or the federal bankruptcy exemptions — you cannot mix and match, and most debtors find the federal exemptions more beneficial. A bankruptcy preparer can help you determine which set of exemptions better protects your assets — all claims are subject to court approval.
How does New Jersey compare to other states?
Use the side-by-side comparison tool to see which state offers more protection for your assets.
Frequently Asked Questions
How much home equity can I protect in New Jersey bankruptcy?
New Jersey does not have a dedicated homestead exemption. Homeowners may be able to protect home equity using other exemptions or the wildcard amount.
Can I keep my car when filing bankruptcy in New Jersey?
New Jersey's vehicle exemption protects up to None in car equity. If your car is worth less than this (or your equity after the loan balance is within this limit), you can typically keep it. If you're financing the car, you may also reaffirm the debt to keep it regardless of equity.
Are retirement accounts protected in New Jersey bankruptcy?
Yes — New Jersey protects Unlimited in qualified retirement accounts. This includes 401(k), 403(b), IRA, and pension accounts. Retirement assets are among the strongest-protected assets in bankruptcy across all 50 states.
Ready to take the next step?
Check If You Qualify for Chapter 7 in New Jersey
Run the free qualification check to see if your income is below the New Jersey median threshold. Takes under 5 minutes.
Check My EligibilityFree · No attorney required · Results in minutes
Non-Attorney Notice: JustiPal™ is a document preparation service — not a law firm. Exemption amounts shown are for educational purposes and reflect general 2025/2026 figures. Individual results depend on your specific assets, equity calculations, and applicable state law. Consult a licensed bankruptcy attorney for legal advice specific to your situation.