• In New Jersey, many personal items and assets are exempt in a Chapter 7 bankruptcy filing.Making a financial plan image by Allen Stoner from Fotolia.com
  
  When filing for Chapter 7 bankruptcy protection, many consumers are concerned with protecting the assets they have worked to obtain. Each state has different laws regarding what is exempt from seizure and what the courts may take to repay the consumer's debt obligations. The state of New Jersey provides consumers with choices between state or federal exemptions when filing Chapter 7 bankruptcy to protect homes, automobiles, funds and personal belongings.
  
  

Home and Automobiles

• Homeowners filing for Chapter 7 bankruptcy protection find themselves looking for a way to keep their home. Since the state of New Jersey does not have a homestead exemption, filers are able to take advantage of the federal homestead exemption. If a home has less than $20,200 in equity, it is exempt from being seized by the bankruptcy courts. Similar exemptions are allowed for automobiles, as bankruptcy courts recognize the need for a vehicle to get to and from work. If an individual chooses to use the state exemption, $1,000 of equity is exempt. The federal exemption allows $3,225 in equity. If the equity is less, the filer is eligible to keep his car.
  
  

Personal Property

• When filing for bankruptcy protection, individuals may find themselves wondering if their personal property that has little monetary value but holds sentimental value will be seized. In New Jersey, consumers are able to keep a number of items under the personal-property exemptions. Kitchen appliances, such as a refrigerator or a stove, that are valued at less than $300 each are exempt. Consumers may also keep items such as books, musical instruments or hunting and fishing equipment valued at less than $525 per item. Personal items such as household goods, jewelry and other furnishings have a limit of $1,350. Also, any tools deemed necessary for employment are exempt up to $2,025.
  
  

Financial Resources

• One of the reasons for filing bankruptcy is protection of an individual's income and financial resources. Under federal law, retirement accounts are exempt from seizure in a bankruptcy proceeding. In addition, New Jersey residents have exemptions regarding bank accounts, insurance settlements and college tuition. Cash on hand, in bank accounts and from a tax refund are exempt up to $400. Settlements received from personal-injury suits are exempt up to $20,200. Tuition credits and payments are also exempt. Consumers also benefit from the exemption for insurance benefits and child support or alimony.