Wage Garnishment in New Jersey: Your Rights and Options

In New Jersey, most creditors must sue you first. They need a court judgment before garnishing your wages. Some debts skip this step. Unpaid taxes, child support, and federal student loans can garnish wages without court approval.

Once approved, your employer withholds part of your paycheck. Creditors typically take 10% to 25% of your disposable income. You can object to the garnishment. You may reduce or stop it by proving financial hardship. Filing for bankruptcy also stops most garnishments immediately.

What Is Wage Garnishment?

Wage garnishment lets creditors take money directly from your paycheck. You fall behind on credit cards, personal loans, or medical bills. Creditors use garnishment to collect what you owe.

New Jersey calls this process wage execution or wage attachment. A creditor must sue you and win a judgment first. The court then issues a garnishment order to your employer. Your employer withholds part of each paycheck and sends it to the creditor.

Both federal and state laws govern wage garnishment. New Jersey law determines the process within the state. The law also sets limits on how much creditors can take.

Who Can Garnish Your Wages in New Jersey?

Nearly any creditor can garnish your wages with a court order. Banks, credit card companies, medical providers, and debt collectors qualify. Debt buyers who purchase old debts can also garnish wages.

Some government agencies skip the court process entirely. The IRS can garnish your wages without a lawsuit. Federal student loan servicers have the same power. Child support enforcement offices can also garnish wages without court approval.

This guide focuses on consumer debt garnishments. These require a court judgment first.

The New Jersey Wage Garnishment Process

Creditors must file a lawsuit to garnish your wages. They need a money judgment against you from the court.

The court awards a money judgment in two situations. You respond to the lawsuit but lose the case. Or you ignore the lawsuit and receive a default judgment.

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Notification and Document Requirements

After winning a judgment, creditors must notify you. They submit specific documents to the court to start garnishment. These include a Notice of Application for Wage Execution. The notice tells you the creditor wants to garnish your wages.

Creditors must file a Certification of Service. This proves they sent the notice properly. They also file a Certification in Support of Application for Wage Execution. This document shows how much you owe and where you work.

Creditors can notify you three ways. They can serve you in person. They can send certified mail with return receipt. Or they can use regular mail.

You have limited time to object after receiving notice. You get 15 days if notified by mail. You get 10 days if served in person.

File an objection and the court schedules a hearing. A judge decides whether to approve the garnishment.

How To Object to Wage Garnishment

You need to file specific documents to object. Notify all parties involved in the case.

File a Certification in Objection to Wage Garnishment. Explain why you object or need a reduced amount. Include a Certification of Service showing you sent copies to all parties and lawyers.

Attach supporting documents that explain your situation. Complete a Wage Garnishment Worksheet if requesting a reduction. The worksheet helps the court evaluate your finances.

Find all necessary forms and instructions in the official guide. New Jersey Courts provides How to Object to a Wage Garnishment documentation.

How Much Can Creditors Take From Your Paycheck?

Creditors can’t take more than the judgment amount. The total includes the original debt plus court fees, legal costs, and interest.

Federal and state laws limit weekly garnishment amounts. New Jersey law provides stronger protections than federal law in most cases.

New Jersey allows creditors to garnish the lowest of three amounts. They can take 10% of your income if you earn less than 2.5 times the federal poverty level. They can take 25% of your disposable income for that week. Or they can take any amount over $217.50.

Disposable income is what remains after required deductions. Required deductions include taxes and Social Security. Your disposable income differs from your gross pay.

Only one wage garnishment can be active at a time. Multiple creditors can’t garnish your wages simultaneously in New Jersey.

Certain income types are exempt from garnishment. Social Security and disability benefits can’t be garnished. Veterans’ benefits and workers’ compensation are also protected.

How To Stop Wage Garnishment

You have several options to stop a wage garnishment. Pay the debt in full as a lump sum. Or let the garnishment continue until the balance reaches zero.

Negotiate a repayment plan directly with the judgment creditor. Many creditors accept alternative payment arrangements. A successful negotiation can stop the garnishment.

Filing for bankruptcy stops wage garnishment immediately. The automatic stay takes effect when you file. This legal protection halts most collection actions, including garnishments.

Chapter 7 bankruptcy can eliminate common consumer debts. Credit cards, medical bills, and personal loans often qualify for discharge. Speaking with a bankruptcy attorney helps you understand your options.

Resources for New Jersey Residents Facing Garnishment

You don’t have to face wage garnishment alone. Several organizations provide legal information and support.

• Legal Services of New Jersey (LSNJ) offers legal advice to qualifying residents
• LSNJ Law provides legal information on consumer credit and debt collection
• Volunteer Lawyers for Justice connects residents with pro bono lawyers for consumer law issues
• Consumer League of New Jersey educates consumers about their legal rights