If you need to collect a judgment entered by a court outside New Jersey from an individual or business with assets in New Jersey, our collection lawyer can assist you. New Jersey law provides a number of alternatives that a seasoned collections lawyer can pursue on your behalf.
Collection Tools Available in New Jersey
Once your out of state judgment is docketed in New Jersey, our collection lawyer can begin the collection process using one or more of the following steps as appropriate:
- Information subpoena– You should likely take this step first because an information subpoena for either individuals or businesses secures additional information about the debtor, and the debtor’s income and assets. After a judgment is docketed in New Jersey, the creditor has the right to obtain an information subpoena. The debtor must answer the questions in the subpoena within 10 days after the subpoena is served. If the debtor does not respond or properly complete the subpoena, the creditor can request that the debtor 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.
- Post-judgment deposition– Once an out-of-state judgment has been filed in New Jersey, the creditor can request the court to order a post-judgment deposition of the debtor, the debtor’s related businesses, and even vendors, suppliers, customers, and tax professionals who have done business with the debtor. Like an information subpoena, this is an additional way to discover income and assets that may be available to satisfy the debt.
- Wage garnishment– When a judgment is against a person, the court can order 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.
- Levies– Once the judgment is docketed, the creditor can assess if the person or business has any items of value, such as a bank account. The creditor can then place a levy against these. In the case of bank accounts, the creditor can request that the court release the funds to him or her. In the case of property, the assets might be sold at auction with the proceeds used to pay the creditor pursuant to a court hearing.
- Changing order– When a company or person has formed a New Jersey Limited Liability Corporation, the creditor can file a motion in Superior Court for a charging order. The LLC will then need to provide an account of how much it has paid and how much it owes to the defendant. The court can order the LLC not to make any further payments to the debtor and can order those payments redirected to the creditor.
- 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.
Remedies in Out-of-State Collections
The above list provides a sample of the types of collection remedies that a creditor has in New Jersey to enforce an out-of-state judgment. Our legal team understands how frustrated creditors feel when they need to pursue a defendant in another jurisdiction for payment. However, when you retain our competent legal team, we can put the needed remedies to work for you so that you can collect what you are owed.
Call Our Collection Lawyer at (973) 265-6100
If you want to pursue collection efforts against a client, contact our collection attorney NJ at Snellings Law LLC for further information.