What assets are debtors entitled to exempt from sale by the Trustee?
A debtor filing bankruptcy in New Jersey can choose between 2 different menus, or slates, of exemptions, generally referred to as the “federal” and “New Jersey” exemptions. These exemptions include, for example, equity in an automobile, a homestead, basic household furniture and furnishings, certain interests in jewelry, tools of the trade, life insurance policies and retirement plans, disability payments, personal injury causes of actions, and other exemptions. In claiming the exemptions, the items are typically valued at their current fair market value, and not their original purchase price. Also, the value of an item is reduced by the amount of any loan (secured claim) that may exist against said item. If there are no objections to the debtor’s claim of exemptions within 30 days after the completion of the meeting of creditors, the exemptions are typically allowed (approved) as a matter of course.
