Bill
Bill > A4279
summary
Introduced
02/19/2026
02/19/2026
In Committee
02/19/2026
02/19/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill establishes homestead and bank account exemptions for persons in debt. Under the bill, an owner who has declared bankruptcy can exempt from an attachment, execution, and forced sale a homestead. "Homestead" is defined in the bill to mean any of the following if it is the primary residence of the owner, the owners' family members, or anyone who has an interest in the property: 1) a dwelling house, appurtenances, and any land on which that dwelling house and any appurtenances are located; 2) a condominium unit or a unit in a horizontal property regime; or 3) a manufactured home, including any appurtenances and land on which the manufactured home and any appurtenances are situated. "Homestead" excludes personal property. The exemption does not apply to real property that is part of and subject to a common interest association that may be subject to other current statutory provisions, but only with respect to claims for charges due and owing the community association arising out of the real property for which the exemption is sought. The bill 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 that becomes property of the estate after that date, the date the property becomes property of the estate. Additionally, the bill updates current law by removing the exemption for certain goods, chattels, shares of stock or interests in any property of every kind up to a certain dollar amount and adding a bank account exemption, regardless of whether a debtor files for bankruptcy, of up to $3,500 in cash for a deposit account or other account of a debtor, or a joint account. The funds in a bank account are to be exempt from execution after the debtor receives approval of a petition for reservation of the funds by a court of competent jurisdiction. The bill further establishes a process by which a person is to be notified to protect the exempt amount and by which the person can object to the seizure of any funds.
AI Summary
This bill establishes new protections for individuals facing debt by creating exemptions for their primary residence, known as a "homestead," and for funds held in bank accounts. A homestead is defined broadly to include a dwelling house with its land, a condominium unit, or a manufactured home, as long as it's the owner's primary residence. These homestead exemptions apply in bankruptcy cases and protect the property from attachment, execution, and forced sale, though they do not apply to claims for unpaid dues or charges owed to common interest associations like homeowners' associations. The bill also updates existing law by removing an exemption for certain personal property and introducing a new exemption for up to $3,500 in cash held in a bank account, regardless of whether the individual files for bankruptcy. This bank account exemption requires court approval for the reservation of funds, and a process is established to notify debtors and allow them to object to the seizure of exempt funds. Additionally, the bill clarifies that these exemptions do not apply in cases involving fraud, fraudulent transfers, duress, or deceit in a fiduciary capacity.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 02/19/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A4279 |
| BillText | https://pub.njleg.gov/Bills/2026/A4500/4279_I1.HTM |
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