The New Jersey Homestead Exemption

In bankruptcy, a homestead exemption protects equity in your home. Here, you'll find specific information about the homestead exemption in New Jersey. For general information about how the homestead exemption works in both Chapter 7 and Chapter 13 bankruptcy, read The Homestead Exemption in Bankruptcy. For more bankruptcy information, read Filing Bankruptcy in New Jersey.

How Much Is the Homestead Exemption in a New Jersey Bankruptcy?

New Jersey lets filers use either the federal exemption system or New Jersey's state exemption system, which is good news because New Jersey doesn't offer a state homestead exemption. However, you can't mix exemptions from both lists, so you'll want to select the system that will protect your most important assets.

To help you make an informed choice, we've listed the federal exemption amount below. We've also included links to more complete federal and state exemption lists so you'll have an easier time deciding which set will work best for you.

If you're married, keep in mind that spouses can double some exemption amounts, but not all. Also, if you hold property as tenancy by entirety with your spouse and one spouse files for bankruptcy, the bankruptcy trustee might be prevented from using the property equity to pay off debts. However, this area is tricky. Before filing, talk with a local bankruptcy attorney to ensure you don't lose valuable property and learn about other filing considerations for spouses.

When Can You Use a Homestead Exemption in a New Jersey Bankruptcy?

You can file for bankruptcy in New Jersey after living there for more than 180 days. However, you must live in New Jersey much longer before using New Jersey exemptions (if that's the set you choose to use), at least 730 days before filing, to be exact. Otherwise, you'd use the previous state's exemptions.

But suppose you lived in multiple states during the two years before filing for bankruptcy. In that case, you'd use the exemptions of the state you lived in for most of the 180 days before the two-year period immediately preceding your filing. (11 U.S.C. § 522(b)(3)(A).) Learn more about filing for bankruptcy after moving to a new state.

Consult a New Jersey Bankruptcy Lawyer

We've covered some of the most basic rules you'll encounter when protecting your home in bankruptcy. However, you'll also need to meet other timing and exemption requirements to prevent losing your home. Find out more about keeping your home in Chapter 7 or Chapter 13 or consult a bankruptcy lawyer.

Need More Bankruptcy Help?

Did you know Nolo has made the law easy for over fifty years? It's true, and we want to ensure you find what you need. Below you'll find more articles explaining how bankruptcy works. And don't forget that our bankruptcy homepage is the best place to start if you have other questions!

We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.

Updated September 22, 2023