Pou bill increasing protections for people filing for bankruptcy passes Senate

Pou bill increasing protections for people filing for bankruptcy passes Senate

Trenton– The list and limits of personal property exempt from seizure in bankruptcy proceedings would be significantly expanded under a bill passed by the Senate.

The bill, S-2423, sponsored by Sen. Nellie Pou, would, among other things, protect New Jersey residents who file for bankruptcy by providing them with a property exemption of up to $340,000.

“Bankruptcy is almost always a last resort,” said Senator Pou (D-Passaic/Bergen). “Families going through this process are dangerously vulnerable and without strong representation they can end up with next to nothing. This bill will help ensure that even after bankruptcy, people have the means to rebuild what they have lost and do not have to fear homelessness or hunger for their families.

This bill would also allow people to keep $5,000 in a personal bank account, which is $4,000 more than is allowed under current law. In addition, it would increase the value of personal property that cannot be sold in bankruptcy proceedings from $1,000 to $10,000, make all household assets exempt from seizure, and protect aid distributed by the federal government to support residents during the COVID-19 pandemic against foreclosure. .

“These bankruptcy regulations have not been updated in nearly 50 years and it is time for New Jerseyans to deal with 21st The problems of the century are given 21st Centennial protections,” said Senator Pou.

A previous version of the bill included provisions that dealt with debt collection without bankruptcy, however, Senator Pou has opted to draft new legislation that will deal with debt collection on its own, which will be introduced in the coming weeks. .

The bill would go into effect immediately and was passed by the Senate by a vote of 38-0.

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