In New Jersey, laws dictate that wage garnishment (also known as wage execution) cannot exceed 10 percent of your debtor’s gross salary. Further, money cannot be withheld at all if your debtor has disposable weekly earnings that are less than $154.50 per week or total less than $309.00 every two weeks. This article highlights important legal aspects of New Jersey collection that you need to know when garnishing your debtor’s wages.
Statute 2A:17-50: A Key Statute for Wage Garnishment Issues
Statute 2A:17-50 is a crucial law that states that any judgment recovered in the New Jersey Superior Court that empowers the court to issue a wage execution against the wages or profits of a judgment debtor can be executed. So long as the money owed to a creditor is $48.00 or more per week, a creditor can appeal to a court in which the judgment was recovered to receive the order that is needed to garnish the debtor’s wages.
Time Limits Affecting Debt Collection
The laws in New Jersey place limits on the amount of time in which the debt can be collected, depending on the type. Open accounts like written contracts and credit cards have a limit of six years, whereas domestic judgments and judgments rendered outside of New Jersey carry a time limit of 20 years. Additionally, you may also be limited in the amount of time you have to collect. New Jersey law differentiates between four different kinds of debt, and the limits placed on the time you have to collect vary based on these four distinctions. Open account limits and written contracts carry a six-year limit. Domestic and foreign judgments, on the other hand, carry a 20-year limit.
Wage Garnishment Process
In order for you to garnish wages, you must petition a New Jersey court for a writ of execution. A writ of execution is a legal order that requires a debtor’s employer to pay withheld monies directly to the court officer, who then pays you (the creditor). In this case, you would approach the debtor’s employer to take a portion of his/her wages. Writs must provide several dollar amounts and other pertinent data, including the total debt, any actual damages, interest due, the names of the parties and your justification for withholding. Typically, a court judgment will be the basis for your withholding.
Contact Our New Jersey Collection Agency
If you are planning on enacting wage garnishment in New Jersey, we recommend a New Jersey collection agency to back you up. To make sure you act within the law when dealing with your debtor, call (973) 265-6100 and discuss your case with professional New Jersey collection agency Snellings Law LLC.