One thing that is a concern for anyone filing bankruptcy is whether a trustee will take away and sell their possessions. This is because, if you are filing a chapter 7 bankruptcy, the trustee assigned to your case will be looking at your assets with an eye towards selling them in an effort to pay creditors. A sale of assets rarely happens in New Jersey, though, because the law provides for you to retain assets up to a certain value.
What Are the Exemptions?
This is done through "exemptions," which are provisions within the Bankruptcy Code (which are used in New Jersey bankruptcies) that protect those assets up to a certain value. Each debtor in a bankruptcy can use the full exemptions, which effectively doubles the maximum amounts for married couples applying exemptions to jointly owned property. Here are some examples of available exemptions:
|Principal Residence (Homestead Exemption)||$25,150|
|Household Goods and Furnishings, Clothing||$13,400|
|Furs and Jewelry||$1,700|
|Tools of trade (books & equipment)||$2,525|
|Cash Value of Life Insurance Policy||$13,400|
|Pain and Suffering Damages from Personal Injury||$25,150|
|"Wildcard" Exemption (Can Be Applied to Anything)||$12,575|
There are more exemptions than these, but the above represent the most common ones applied.
So What Should I Do?
Ultimately, the answer to this question can only be given after an attorney has reviewed a list of your assets, determined their distressed sale value, and then applied these exemptions. Often, a "liquidation analysis is done, as in the case of a home. Although each case is different, statistics are on your side. In New Jersey, over 90% of chapter 7 bankruptcies do not involve assets being sold by the trustee.
If you live in Burlington, Camden, Gloucester, Salem or Cumberland County, are considering filing bankruptcy, and are ready to take action, then call my office at 856-432-4113 or contact me through this site for a free consultation in my Woodbury office to discuss your case.
If you are looking for more information about bankruptcy, then download my free book,Top Questions People Ask About Filing Bankruptcy in New Jersey.
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