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Under state law, the New Jersey bankruptcy homestead allowance, or
more importantly, the omission of a state allowance for exempting homes,
causes alarm for many state residents. However, the Section 522 Code
(Federal) homestead provision may be chosen if accepting the federal set
of exemptions in it's entirety. As a result, most New Jersey bankruptcy
lawyers advise their clients to select the federal statute because, at
present, $18,500 in equity value owned in a primary residence may be
exempted when filing Chapter 7.
If no real estate, homes, or real property interests are owned, the
New Jersey bankruptcy exemptions provided by the state statute may be a
better choice. Contact a local New Jersey bankruptcy law firm for more
information about the effect of formal elections.
See also: New Jersey Homestead Exemption.
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