New Jersey
Last reviewed: 2026-09-15
New Jersey consumers have rights under both federal law (FDCPA, FCRA) and New Jersey's Consumer Fraud Act. The information below is general and was last reviewed on the date shown — verify with the cited sources before relying on it.
State laws and court rules change. The information below is general and was last reviewed on the date shown. Verify any deadline or rule with the official source cited, or consult an attorney licensed in New Jersey.
Debt-Collection Lawsuit Basics
In New Jersey, a debt-collection lawsuit typically begins with a Complaint served on you. In the Special Civil Part (for claims up to $5,000, raised to $20,000 in some courts), you generally must file an Answer within 35 days. In the Law Division, the deadline may differ. Do not ignore court papers — missing the deadline can lead to a default judgment.
Sources
- N.J. Court Rules R. 6:1 (Special Civil Part procedures)
- New Jersey Courts self-help resources
Wage Garnishment
New Jersey generally follows the federal limit: garnishment is limited to the lesser of 25% of disposable earnings or 30 times the federal minimum wage per week. Some income is exempt. Court orders are required for most garnishment.
Sources
- 15 U.S.C. § 1673 (CCPA federal limit)
- N.J.S.A. 2A:17-50 (garnishment procedures)
Bank-Account Restraints and Exempt Funds
After a judgment, a creditor may restrain your bank account. Federal benefits (Social Security, SSDI, VA) are generally exempt and banks must protect a portion of automatically deposited exempt benefits. You may need to claim exemptions to release additional frozen funds. Act quickly — deadlines can be short.
Sources
- 31 C.F.R. § 212 (exempt benefits protection)
- N.J. Court Rules R. 4:59 (enforcement of judgments)
Statutes of Limitation
In New Jersey, the statute of limitations for most written contracts (including many credit card debts) is generally 6 years. A time-barred debt generally cannot be collected through a lawsuit. Do not make a payment or promise to pay on an old debt without understanding it could restart the limitations period.
Sources
- N.J.S.A. 2A:14-1 (6-year limitation for contracts)
Official Resources
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Information is general in nature and may not apply to your specific situation. Laws vary by state and change over time. Nothing on this platform should be used as a substitute for the advice of a competent attorney licensed in your jurisdiction.