A common remedy in a collections dispute is wage garnishment. In this case, a court may order that a portion of your paycheck first be paid to your creditor before you ever see
a cent. By garnishing your wages, you do not have the option not to pay back your debt as it is automatically deducted. However, a New Jersey collections attorney can explain to you that there are rules and limitations on how much and when your wages may be garnished.
New Jersey Wage Garnishment Laws
New Jersey has some of the strictest wage garnishments laws in the country. Generally, a creditor can only receive a judgment to garnish up to 25 percent of your wages. The exact amount that can be garnished will depend upon your earning capacity; the more you make, the higher percentage of your wages may be garnished, but generally not to exceed 25 percent of your income. However, a New Jersey collections lawyer can explain to you the limited exceptions where a creditor may be able to seek more than a 25 percent garnishment.
How Wage Garnishment Works Explained by a New Jersey Collections Lawyer
Generally, a wage garnishment is an order by a judge or government agency to your employer. Your employer will then withhold the ordered amount from your paycheck to help repay your debts. Some common situations where a court may order your wages garnished include:
- Credit Cards. Failure to pay your credit card bills on time may lead to wage garnishment;
- Taxes. The government may garnish your wages without a court order in cases of unpaid taxes;
- Student Loans. More and more students are unable to cope with the increasing costs of education; and
- Unpaid Mortgage and House Payments. Debts owed to your bank often times lead to garnishment orders.
Contact a New Jersey Collections Attorney
If you have any questions about remedies for a collections dispute such as wage garnishment, you will want to contact an experienced attorney. To learn more about wage garnishments and your collections case, contact an attorney at Snelllings Law LLC by calling 973.265.6100.