NJ Offers Choice of State or Federal Exemptions
- March 3, 2013
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Under the bankruptcy laws of New Jersey, a debtor may elect using either New Jersey or Federal bankruptcy exemptions. When you file Chapter 7 bankruptcies, non-exempt property you own will usually be used by Trustee to pay off your creditors. Under Chapter 13 bankruptcy, a Trustee will usually require you to pay any amount owed to creditors on the value of your property that is not exempt. Properties qualifying for exemption vary between State and Federal law, which has its own set of exemptions. Although New Jersey allows you to choose between Federal and New Jersey State exemptions,you cannot mix and match between the two. Deciding whether State or Federal exemptions are more beneficial to you largely depends on your situation. For instance, if you want to try and save your home, federal exemptions may be better for you as you are allowed to exempt over $20,000 of equity in your home (over $40,000 for a married couple filing jointly). Both State and Federal exemptions include specific values you may exclude in your automobiles, clothing, pensions and insurance, to name a few If you are considering filing for bankruptcy you will be addressing many issues concerning which set of exemptions to choose from and should consult with an experienced bankruptcy attorney immediately in order to protect your rights. For more information regarding which set of bankruptcy exemptions to choose from, foreclosure, consumer debt or other bankruptcy law matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for information purposes only and in no way is intended to replace the advice of an attorney regarding your specific matter. We are a Debt Relief Agency. We help people file for bankruptcy relief.