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New Jersey law

Bankruptcy Laws in New Jersey.

New Jersey is one of the few states with no homestead exemption under state law. Most NJ bankruptcy attorneys recommend choosing federal exemptions (11 U.S.C. § 522(d)), which include a homestead exemption of $31,575 (single) or $63,150 (married). The state wildcard is only $1,000. NJ has some of the highest median incomes in the nation, affecting Chapter 7 eligibility.

Last verified: 2026-02-25

State law

Filing Requirements

Means Test Median Income (Nov 2025)

Annual median: 1 person $84,938; 2 persons $104,136; 3 persons $133,620; 4 persons $163,817. Among the highest in the nation.

State law

Key New Jersey Statutes

No State Homestead ExemptionN.J.S.A. 2A:26-4

New Jersey has no homestead exemption under state law — one of the few states without one. Most filers choose federal exemptions instead, which provide a homestead exemption of $31,575 (single) or $63,150 (married joint).

State Personal Property/WildcardN.J.S.A. 2A:26-4

The state wildcard exemption is only $1,000 total for personal property including household goods and furniture. No separate vehicle exemption under state law.

Wage ExemptionN.J.S.A. 2A:17-56

Households under 250% of poverty: 90% of earned but unpaid wages are exempt. Over 250%: 75% of wages are exempt.

Retirement & Insurance ProtectionsN.J.S.A. 25:2-1(b); N.J.S.A. 17B:24-6

Pensions and retirement accounts (401k, IRA, Roth IRA) are fully exempt. Life insurance proceeds are also exempt.

State law

Official Sources

Not Legal Advice

This page summarizes publicly available statutes and rules for informational purposes only. It does not constitute legal advice, and no attorney-client relationship is created by viewing this content. Laws change — always verify with the primary source or consult a licensed attorney in New Jersey.

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