{"id":909,"date":"2019-12-07T08:27:46","date_gmt":"2019-12-07T08:27:46","guid":{"rendered":"https:\/\/www.karinalucidlaw.com\/?p=909"},"modified":"2021-02-18T23:19:49","modified_gmt":"2021-02-18T23:19:49","slug":"bankruptcy-exemptions-in-new-jersey","status":"publish","type":"post","link":"https:\/\/www.karinalucidlaw.com\/bankruptcy-exemptions-in-new-jersey\/","title":{"rendered":"Bankruptcy Exemptions in New Jersey"},"content":{"rendered":"
If you want a solution for your financial problems that won\u2019t cost you everything you own, you may choose to file for bankruptcy under a bankruptcy chapter that allows you to hold on to certain<\/a> assets through exemptions. The most common personal bankruptcy chapters are 7 and 13; both allow filers to exempt some assets from bankruptcy proceedings. Exempt assets are free from sale. Therefore, their potential proceeds are also off limits to creditors.The property exempted depends on the type of exemption it is under. For instance, the homestead exemption exempts your primary residence, whereas the motor vehicle exemption offers a shield for a car. Meanwhile, wildcard exemptions are about applying a particular value to a property. A debtor may use this exemption to protect some or all of an asset\u2019s value. This all depends on the exemption coverage amount and the worth of the asset.<\/p>\n What items aren\u2019t likely to be protected in a liquidation process? Luxuries are usually non-exempt. If you have a second home, a fancy car, precious jewelry, and designer articles, it could be preferable to just sell them to pay your debts instead of having to go through the process of filing for bankruptcy. If you\u2019re wondering about the fate of your pets, you should know that while they\u2019re technically not included in the exemptions, they probably wouldn\u2019t attract the attention of your bankruptcy trustee unless they can fetch a considerable sum when sold.<\/p>\n Since Chapter 7<\/u><\/a>\u00a0involves liquidation, filing a bankruptcy petition under it leads to the trustee taking your non-exempted property and selling it all off in order to pay off your debts. Certain items are exempt from liquidation. For instance, if the exemption is valued higher than the asset, you can just keep the item. What if the exemption’s value is lower than the asset? The trustee still takes it and sells it, simply giving you the change after paying your debts.<\/p>\nChapter 7 Exemptions<\/h3>\n
Chapter 13 Exemptions<\/h3>\n