If you want to collect a judgment from someone State Collections in NJ that originated in another state, our collection lawyer can provide you with information on the proper steps to take. This is called the “Act” in New Jersey and is a relatively easy process that only takes three or four weeks. However, the plaintiff needs to notify the defendant, who then has the right to object. In these cases, the process is a little more complicated.
Types of Collection Efforts State Collections in NJ
The judgment is first docketed in New Jersey according to the terms of the Act. Look for a seasoned law firm with years of experience, the resources to enforce collection measures and knowledge and background in collection practices. Our collection lawyer can then begin the process using the following steps:
- Information subpoena – You should likely take this step first because an information subpoena for either individuals or businesses secures additional information about the defendant. After a judgment is docketed in the state, the creditor has the right to submit an information subpoena. The defendant must answer within 10 days after the subpoena is served. If the defendant does not respond or properly complete the subpoena, the plaintiff can request that the creditor be held in contempt, subjected to punitive sanctions or even arrested. The information in the subpoena can help the creditor determine what type of collection strategy to pursue next.
- Changing order – When a company or person has formed a New Jersey Limited Liability Corporation, the plaintiff can file a motion in Superior Court. The LLC will then need to provide an account of how much they have paid to the defendant. They will also need to make payments to the creditor pursuant to the court order.
- Levies – Once the judgment is docketed, the plaintiff can assess if the person or business has any items of value, such as a bank account. The plaintiff can then place a levy against these. In the case of bank accounts, the creditor can request that the court release the funds to them. In the case of property, the assets might be sold at auction with the proceeds possibly used to pay the creditor pursuant to a court hearing.
- Post-judgment deposition – Once a judgment has been filed in New Jersey, the creditor can request a post-judgment deposition. The court can then depose the debtor and all related business affiliations, including vendors, suppliers, customers and tax professionals.
- Receivership – You might not be the only creditor who is not being paid. In this case, a court-appointed receiver might step in and liquidate the assets of the business, thus paying off all creditors.
- Wage garnishment – When a judgement is against a person, the courts can seek a wage execution or garnishment to collect the debt. However, the defendant has the right to object once he or she is notified of the order. If the defendant does not object, the employer receives notice and must turn over 10 percent of the person’s gross wages received each pay period to the Sheriff as long as the earnings are above a certain minimum amount.
Remedies in Out-of-State Collections
The above listing provides a sample of the types of collection remedies that a creditor has in New Jersey for out-of-state defendants. Our legal team understands how frustrated creditors feel when they need to pursue a defendant in another jurisdiction for payment. However, when you retain a competent legal team, we can put the needed remedies to work for you so that you can collect an out-of-state judgment.
New Jersey Fair Debt Collection Statute
However, New Jersey enforces fair debt collection practices under state law. Some of the specifics of the legislation follow:
- The collection agency must be properly bonded with the Secretary of State for a minimum of $5,000.
- The term of the bond is for one year and must be renewed each year.
- The bond will first be approved by the Attorney-General and then filed with the Secretary of State.
- Cash is an acceptable form of bond payment.
- The applicant must pay a filing fee of $25 for each bond.
- Failure to comply with the bond laws could result in a $500 fine and/or a jail term of up to three months.
- These laws do not apply to any lawyers who are licensed to practice in the state.
By securing the services of a New Jersey attorney, you do not need to worry about bonds or the related terms of compliance.
Call Our Collection Lawyer at (973) 265-6100
If you want to pursue collection efforts against a client, contact our State Collections in NJ at Snellings Law LLC for further information.