Bill > A3538

Introduced Session

This bill establishes a homestead and bank account exemption for persons in debt and increases the existing exemption amount for household goods. Under the bill, an owner can exempt an interest in the homestead from an attachment, execution, and forced sale in an amount that is the greater of: (1) the amount of the median sale price for a single-family home in that county, in the calendar year prior to the calendar year in which the debtor claims the exemption, as determined by using the United States Census Bureau's most recent 1-year American Community Survey data table, B25077, Median Value, or an equivalent valuation approved by the Department of Banking and Insurance, not to exceed $600,000; or (2) $300,000. If the owner or a dependent of the owner is either 60 years of age or older, or is physically or mentally disabled and because of such disability is unable to engage in substantial gainful employment and whose disability has lasted or can be expected to last at least 12 months, or can be expected to result in death, the homestead exemption will be double the aforementioned county median. The bill provides that the homestead exemption will attach to the owner's interest in identifiable cash proceeds from the voluntary or involuntary sale of the homestead and that the exemption in identifiable cash proceeds would continue for 18 months after the date of sale for the homestead or until the owner establishes a new homestead with the proceeds, whichever period is shorter. The bill also provides that, in a bankruptcy case, the owner's exemptions shall be determined on the date the bankruptcy petition is filed or, with respect to property respect to property that becomes property of the estate after that date, the date the property becomes property of the estate. If the value of the owner's interest in homestead property on such date is less than or equal to the amount that can be exempted under the homestead law, then the owner's entire interest in the property, including the owner's right to possession and interests of no monetary value, is exempt. Any appreciation in the value of the owner's exempt interest in the property during the bankruptcy case is also exempt, even if it exceeds the statutory limit. The bill additionally increases the total value of household goods that are exempt from debt collection, from $1,000 to $15,000, and provides for an exemption from garnishment of up to $10,000 for cash held in a deposit account or other account of the debtor, or up to $15,000 if the cash amount is held in a joint account.

Committee Categories

Dan Hutchison (D)*,  Annette Quijano (D)*,  Verlina Reynolds-Jackson (D)*,  Cody Miller (D),  Sterley Stanley (D), 

Assembly Regulated Professions Hearing (14:00:00 5/15/2025 Committee Room 9, 3rd Floor, State House Annex, Trenton, NJ) (on 05/15/2025)

Official Document