New Jersey Fair Debt Consumer Guide
Learn about your legal rights when facing Debt Collector Problems. Research the applicable laws that could help protect you when a debt collector is attempting to seize your assets, garnish your wages or continue collection of a debt that is outside New Jersey's Statutes Of Limitations. New Jersey phone recording laws could assist you in gathering proof of the debt collector's illegal tactics; find out whether recording your debt collector's phone conversation is permitted in your state.
The New Jersey Fair Debt Collection Consumer Practices Guide summarizes New Jersey's laws on wage garnishment, property and asset seizures and state statutes of limitations on debt collection and could provide the ammunition you need to stop or limit creditors and collectors from harassing you, garnishing your wages or bank accounts, and from seizing your property through liens, thus limiting your overall financial exposure.
This Guide does not include information concerning the FTC's Credit Practices Rule, state consumer protection laws or information regarding exemption provisions found in laws other than the state's general exemption laws and is not intended to substitute for the advice of an attorney.
New Jersey Consumer Debt Exemption Laws
If a debt collector threatens to seize your property or your assets, you could be protected under New Jersey’s Consumer Debt Exemption Laws. Read the summarized information below to learn how to protect what you own and what you cannot protect from seizure. You could significantly strengthen your bargaining position with debt collectors by knowing your rights under New Jersey Debt Exemption Law!
New Jersey Statutes
The state of New Jersey has NOT opted out of federal bankruptcy exemptions.
Wages: New Jersey Statutes Annotated §§ 2A:17-50, 2A:17·56, -56.9, and -56.12.
Tangible personal property: New Jersey Statutes Annotated §§ 2A:17-19,
2A:26-4, and 38A:4-8.
New Jersey Debt Statutes of Limitation
Your debt may have expired under New Jersey’s Statutes of Limitations, and may be considered uncollectible. Read the summary below to see the length of time certain types of debt can continue to be collected under the New Jersey Debt Statutes of Limitations, don’t let a collector threaten to take you to court over an expired debt.
New Jersey Debt Statutes of Limitation
Conversion of an instrument for money: 3 years, (N.J.S.A.12A: 3-118(g)).
Sale of goods under the UCC: 4-years, (N.J.S.A. 12A; 2-725).
Real or personal property damage, recovery and contracts not under seal: 6 years (N.J.S.A. 2A: 14-1).
Demand Notes when no demand is made: 10 years. If demand made: 6 years from date of demand, (12A: 3-118(b)).
Obligations under seal for the payment of money only, except bank, merchant, finance company or other financial institution: 16 years, (N.J.S.A. 2A: 14-4) actions for unpaid rent if lease agreement is under seal, (N.J.S.A. 2A: 14-4).
Real estate: 20 years, (N.J.S.A. 2A: 14-7); Judgments: 20 years, renewable, (2A: 14-5); Foreign judgments: 20 years (unless period in originating jurisdiction is less), (2A: 14- 5).
Unaccepted drafts: 3 years from date of dishonor or 10 years from date of draft, whichever expires first, (12A: 3- 118(c)).
New Jersey Wage Garnishment Procedural Requirements
Wage garnishment doesn’t mean a debt collector or creditor is entitled to take all your money. Under New Jersey’s Wage Garnishment Laws, there are limits and protections on just how much can be taken from your paycheck.
Read the summary below to learn your garnishment rights under New Jersey law.
New Jersey Wage Garnishment Procedural Requirements
Process to enforce a judgment or order for the payment of money and process to collect costs allowed by a judgment or order, shall be a writ of execution. The amount of the debt, damages and costs actually due and to be raised by the writ, together with interest thereon by the party at whose instance it shall be issued before its delivery to the sheriff or other officer. In aid of judgment or execution, the judgment creditor may examine any person, including the judgment debtor, by deposition or as provided by Rule 6:72, except that service of an order for discovery or an information subpoena shall be made as prescribed by Rule 1:52 for service on a party. The court may make any appropriate order in aid of execution. The writ may be issued either by the court or the clerk of the court. N.J. R. Civil. P. 4:591.
The court may, upon the filing by the judgment creditor of a petition verified by the judgment creditor or the creditor's agent or attorney Statuteing the amount due on the judgment, make an order, upon good cause shown, requiring any person who may possess information concerning property of the judgment debtor to appear before the attorney for the judgment creditor or any other person authorized to administer an oath and make discovery under oath concerning that property at a time and place therein specified. An information subpoena may be served upon the judgment debtor, without leave of court, accompanied by an original and copy of written questions and a prepaid, addressed return envelope. The information subpoena and written questions shall be in the form and limited to those set forth in Appendix XIL. N.J. R. Civil. P. 6:72. Service shall be made as provided in Rule 4:44 (personal service) or by registered or certified mail, return receipt requested, to the party's last known address; or if the party refuses to claim or to accept delivery, by ordinary mail to the last known address; or if no address is known, by ordinary mail to the clerk of the court. N.J. R. Civil. P. 1:52.
In aid of execution, the court, out of which the execution is issued, upon proof by the oath of the party, showing facts establishing that any person owes the judgment debtor or holds money or property in possession or action in trust for the judgment debtor, or for his or its use over and above such property as is exempt or reserved by law, may make an order forbidding the payment of such debt, or the transfer of such property or money by or to such debtor, or any third person until the further order of the court. N.J. Statute. Ann. _ 2A:1765.
Every court officer or other person levying on a debtor's property shall, on the day the levy is made, mail a notice to the person whose assets are to be levied on Statuteing that a levy has been made and describing exemptions from levy and how such exemptions may be claimed. The notice shall be in the form prescribed by Appendix VI to these rules and a copy thereof shall be promptly filed by the levying officer with the clerk of the court. N.J. R. Civil. P. 4:591.
New Jersey (Debt Collector) Call Recording Law
Under New Jersey State and Federal Call Recording Laws, you could record the actual phone conversation with a debt collector in your efforts to stop debt collectors from calling! New Jersey is a one party consent state, meaning only the permission of one person on the call is necessary to record. YOU ALONE can be considered the one party to give consent, thus you do not need a debt collectors permission to record the phone conversation in the state of New Jersey.
Research and find additional information about Federal Call Recording Laws and learn what call recording procedures are legal in other states.
