New Jersey Debt Relief
New Jersey Credit Card Debt law carries a 6-year Statute of Limitations (SOL) for lawsuits on unpaid debt, including open-ended accounts. The time limit begins from the date of the last scheduled missed payment, but begins again if the debtor makes any additional partial payments. The law allows 35 days to answer a summons for suit, one of the longest response times nationwide. Answers should be sent certified mail to ensure timely delivery and to avoid default judgment for the Plaintiff.
New Jersey judgments are enforceable for 20 years, collecting interest at a rate determined by the New Jersey Division of Investment in the Department of the Treasury. Judgments over $10,000 will be charged an addition 2% per year. The creditor may levy all non-exempt personal and real property belonging to the debtor. No homestead exemption is allowed, but debtors may exempt up to $1,000 in personal property.
Wage garnishments are allowed, but limited to 10% of gross income or 25% of disposal income, whichever is less. No execution may be made against weekly gross wages of $154.50 or less.
Contracts containing a “confession of judgment,” contract language allowing for automatic judgment against the debtor, are recognized by New Jersey Courts. To prevent fraudulent entry of such confessions, the court may ask for additional proof of the debt.
To avoid attachment of wages and property, New Jersey residents should seek an alternative method of resolving the conflict, such as Debt Settlement. These agreements allow for interest free payment plans that help pay down the debt obligation and avoid bankruptcy.