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What are bankruptcy exemptions in New Jersey?

Federal & State Law Editorial TeamLast reviewed: 2026-05-02

New Jersey has historically weak state exemptions, making federal exemptions the choice for nearly all debtors.

1. Choice Between State and Federal

New Jersey did not opt out. Debtors may choose either state exemptions OR federal exemptions in 11 U.S.C. § 522(d). >95% of NJ debtors choose federal.

2. New Jersey State Exemptions — N.J.S.A. 2A:17-19

  • NO homestead exemption — like Pennsylvania.
  • Personal property — § 2A:17-19: $1,000 in goods, chattels, and personal property.
  • Specific items — § 2A:26-4: clothing, school books, religious items.
  • Wages — § 2A:17-50: lesser of 10% of weekly gross or amount over 250% of federal poverty for household size.
  • Cemetery plots — § 8A:5-10: exempt.
  • Insurance — § 17B:24-6 to -10: most life insurance, annuities, disability — exempt.
  • Public assistance — § 44:7-35: exempt.

    • 3. Federal Exemptions — 11 U.S.C. § 522(d) (overwhelming choice)

  • Homestead — § 522(d)(1): $27,900 ($55,800 joint).
  • Motor vehicle — § 522(d)(2): $4,450.
  • Household goods/furniture — § 522(d)(3): $700/item, $14,875 aggregate.
  • Jewelry — § 522(d)(4): $1,875.
  • Wildcard — § 522(d)(5): $1,475 + up to $13,950 unused homestead = up to $15,425.
  • Tools of trade — § 522(d)(6): $2,800.
  • Life insurance unmatured — § 522(d)(7), (8): unlimited contract; $14,875 cash value.
  • Personal injury — § 522(d)(11)(D): $27,900.
  • Retirement accounts — § 522(d)(12): ERISA + IRAs fully exempt up to $1,512,350 (2025).

    • 4. Wages

    Whether choosing state or federal exemptions, federal CCPA limits garnishment to 25% of disposable or amount over 30x minimum wage.

    5. Tenancy by the Entirety

    New Jersey recognizes — joint marital property exempt from individual creditors.

    6. Domicile Requirement

    730-day rule under 11 U.S.C. § 522(b)(3).

    7. Joint Filers

    Both spouses must use the same system — cannot mix and match.

    8. Why Federal Wins for NJ Debtors

  • Homeowners: NJ has no homestead, so federal $27,900 is essential.
  • Renters: Federal wildcard up to $15,425 vs. NJ's measly $1,000.
  • Vehicle owners: Federal $4,450 vs. effectively $1,000 under NJ.

    • 9. Strategic Considerations

    The few cases where NJ state might apply:

  • Specific NJ insurance protections that exceed federal.
  • Property held as tenancy by the entirety (works under both).
  • Certain pension protections under specific NJ statutes.

    • This is legal information, not legal advice.

    When to Talk to a Lawyer
    • You need to confirm federal exemptions are the right choice in nearly every NJ case
    • You and your spouse own property as tenants by the entirety
    • You have a large retirement account approaching the $1,512,350 federal cap
    Related Statutes & Laws
    • N.J.S.A. 2A:17-19
    • N.J.S.A. 2A:17-50
    • N.J.S.A. 17B:24-6
    • 11 U.S.C. § 522(d)

    This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.