{"id":375023,"date":"2016-03-31T21:35:59","date_gmt":"2016-04-01T02:35:59","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/state\/new-jersey-law\/new-jersey-homestead-laws.html"},"modified":"2026-08-06T12:04:36","modified_gmt":"2026-08-06T17:04:36","slug":"new-jersey-homestead-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/new-jersey-law\/new-jersey-homestead-laws.html","title":{"rendered":"New Jersey Homestead Laws"},"content":{"rendered":"\n
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New Jersey Homestead Laws<\/h1>\n\n
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\n By Christie Nicholson, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

Because New Jersey<\/span> lacks a state homestead exemption, state residents filing Chapter 7 or Chapter 13 bankruptcy rely on the federal homestead exemption<\/span> to protect up to $31,575 in individual equity from creditors. Eligible property types include single-family homes and mobile residences, provided the filer meets the two-year state domicile requirement.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

People can be reluctant to file for bankruptcy out of fear of losing their home. Becoming familiar with bankruptcy laws<\/span> can help you know what to expect during the process, including the likelihood of keeping your primary residence<\/span>.<\/p>\n

Most states offer\u00a0homestead protection<\/span> laws<\/a>\u00a0that allow people to stay in their home by protecting some or all of the equity. Homestead laws are in place to reduce the threat of homelessness due to hardship.<\/p>\n

New Jersey<\/span> is one of only two states that do not offer this protection for a principal residence<\/span>. While there\u2019s no homestead exemption in the Garden State, New Jersey<\/span> residents<\/span> are still protected. Federal homestead exemptions<\/span> are available to New Jersey<\/span> homeowners<\/span>.<\/p>\n

This article explains how to protect your real property<\/span> in the event that you file Chapter 7 or Chapter 13 bankruptcy. It also examines the specific exemption amount<\/span> that will apply to your bankruptcy proceedings.<\/p>\n

If you\u2019re in the middle of a bankruptcy or are considering filing for relief under the bankruptcy laws<\/span>, contact a New Jersey<\/span> bankruptcy<\/span> attorney<\/a>. Financial struggles shouldn\u2019t cost you your home when debt relief<\/span> may be available through bankruptcy.<\/p>\n

Exemptions for New Jersey<\/span> Bankruptcy<\/span> Filers<\/h2>\n

Regardless of whether you\u2019re filing a Chapter 13 or a Chapter 7 <\/span>bankruptcy<\/span> case<\/span>, New Jersey<\/span> doesn\u2019t offer property owners<\/span> a homestead exemption when they file Chapter 7 bankruptcy<\/span>. However, bankruptcy filers can apply the federal homestead exemption<\/span> if they have equity in their home.<\/p>\n

When it comes to homestead exemption laws<\/span>, the actual value of your home doesn\u2019t matter. The exemption protects the equity in your home, not the house itself. If the equity in your home is less than the amount of the homestead exemption, then the bankruptcy trustee<\/span> can\u2019t sell your home to pay your creditors.<\/p>\n

If the amount of equity in your house is greater than the homestead exemption, then there is a chance that the trustee will sell your property and distribute the proceeds to your creditors. To avoid this worst-case scenario, consider seeking legal advice<\/span> from a New Jersey<\/span> bankruptcy<\/span> lawyer<\/a> before filing your bankruptcy petition.<\/p>\n

Applying the Federal Homestead Exemption<\/span><\/h2>\n

Since the state of <\/span>New Jersey<\/span> doesn\u2019t offer a homestead exemption, people who file bankruptcy in New Jersey<\/span> must turn to the federal homestead exemption<\/span>. The specific amount of this exemption increases every three years.<\/p>\n

For the years 2025 through 2028, the federal homestead exemption<\/span> is $31,575 per person. Married couples<\/span> who own real property<\/span> together can claim a total exemption of twice that amount ($63,150). The amount is the same regardless of which municipality<\/span> your primary residence<\/span> is located in.<\/p>\n

Before taking advantage of the federal homestead exemption<\/span>, you\u2019ll need to decide which type of bankruptcy you\u2019re filing for. Whether you opt for Chapter 7 or Chapter 13<\/a> will depend on your financial situation and which eligibility requirements<\/span> you meet. If you\u2019re uncertain or feeling overwhelmed, consider meeting with a bankruptcy attorney<\/a> for assistance.<\/p>\n

Are There Limitations on the Federal Homestead Exemption<\/span>?<\/h2>\n

There are no specific limits on the federal homestead exemption<\/span>, aside from the dollar limit. There are no restrictions based on your acreage or different exemptions for rural property versus urban property.<\/p>\n

As long as you meet the basic requirements for the exemption, you can apply it as part of your bankruptcy case<\/span>. These requirements are as follows:<\/p>\n