When filing bankruptcy in New Jersey, there are certain real property and personal property that can be protected under the exemptions that are allowed by the bankruptcy court. This includes your residence, your household furnishings, your personal belongings, your car, your limits in your bank accounts, your retirement funds, and a list of other items that we can certainly discuss with you. If you are considering bankruptcy, it is important to speak with your attorney regarding the property owned and whether or not it will be exempt.
In some instances, depending on the type of bankruptcy that you are filing for, you can protect some of your assets. In Chapter 13 bankruptcy, there is the possibility of keeping your house out of foreclosure if you can continue to make your mortgage payments. In Chapter 7 bankruptcy, there are exemptions that can be made for certain assets. Each state as well as the federal system has their own set of exemptions that can be made when filing for bankruptcy.
In New Jersey, you are allowed to use both state and federal exemptions to ensure that the largest amount of your property as possible is protected during bankruptcy. Under state exemptions, you are allowed to keep your health or disability benefits, life insurance, and/or pensions depending on what your career is. You are also entitled to keep your unemployment compensation, worker’s compensation, any clothing, furniture and household goods that are worth up to $1000.
If you are filing for bankruptcy and want to know what specific exemptions apply to you, seek legal counsel from an experienced attorney to assist you.
Juan C. Velasco, Esq. is a trusted attorney who has been serving the New Jersey area for over 25 years. If you are in need of experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.