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New Jersey Debt Collection Laws: Time Limits, Garnishment and Your Rights

New Jersey debt rules: statute of limitations, wage garnishment limits, protected bank and home exemptions, judgments, collector rules and how to answer a debt lawsuit.

Quick answers for New Jersey

Time limit to sue on a written contract
6 years for a contract claim, written or oral (express or implied, not under seal). N.J.S.A. 2A:14-1
Wage garnishment limit
Stricter than federal law. A wage execution is generally limited to the lesser of 10% of gross pay or 25% of disposable (net) pay, and pay up to 30 times the federal minimum hourly wage per week is protected. NJ Courts, How to Object to a Wage Garnishment in a Special Civil Part Case (CN 12322); Collecting a Money Judgment (CN 10282)
Money protected in a bank account
No general dollar exemption for bank accounts. Child support, welfare, Social Security, SSI, veterans' and unemployment benefits cannot be levied. NJ Courts, Collecting a Money Judgment (CN 10282); How to Object to a Bank Account Levy (CN 12323)
Answering a debt lawsuit
In the Special Civil Part (cases of $20,000 or less), file a written answer with the court within 35 days of getting the summons. If you do not, a money judgment may be entered against you. NJ Courts, Lawsuits $20,000 or less (Special Civil)

Last verified: 2026-10-26

Time limits

Time limit to sue on a written contract6 years for a contract claim, written or oral (express or implied, not under seal).
Source: N.J.S.A. 2A:14-1
Time limit for credit cards and open accounts6 years, the same as other contract claims.
Source: N.J.S.A. 2A:14-1
How long a judgment lastsA writ for a wage execution can last for 20 years; other writs of execution (such as bank levies) expire after 2 years, but the creditor may request new writs or record the judgment as a lien on New Jersey real estate.
Source: NJ Courts, Lawsuits $20,000 or less (Special Civil); Collecting a Money Judgment (CN 10282)

If you are sued

Answering a debt lawsuitIn the Special Civil Part (cases of $20,000 or less), file a written answer with the court within 35 days of getting the summons. If you do not, a money judgment may be entered against you. The court publishes answer packets and forms for self-represented defendants.
In small claims, the defendant must attend the trial as instructed in the summons.
Source: NJ Courts, Lawsuits $20,000 or less (Special Civil)

Garnishment and what creditors can't take

Wage garnishment limitStricter than federal law. A wage execution is generally limited to the lesser of 10% of gross pay or 25% of disposable (net) pay, and pay up to 30 times the federal minimum hourly wage per week is protected. A wage execution is available only if the debtor earns more than $217.50 a week. The debtor can ask the court to reduce it for hardship.
The court guide states the limit in two slightly different ways (10% of disposable earnings in one place; lesser of 10% of gross or 25% of net in its worksheet instructions). The governing statute (N.J.S.A. 2A:17-56) was not read. Medical creditors may not garnish wages of patients with income under 600% of the federal poverty level (P.L. 2024, c. 48).
Source: NJ Courts, How to Object to a Wage Garnishment in a Special Civil Part Case (CN 12322); Collecting a Money Judgment (CN 10282)
Money protected in a bank accountNo general dollar exemption for bank accounts. Child support, welfare, Social Security, SSI, veterans' and unemployment benefits cannot be levied. A debtor whose account is frozen can file a Certification in Objection to Levy, with three months of bank statements, to show the money is exempt.
Source: NJ Courts, Collecting a Money Judgment (CN 10282); How to Object to a Bank Account Levy (CN 12323)
Vehicle exemptionNo separate vehicle exemption. The debtor keeps $1,000 worth of personal property plus wearing apparel; a vehicle registered to the debtor with equity can be seized under a writ.
The underlying statute (N.J.S.A. 2A:17-19) was not read.
Source: NJ Courts, Collecting a Money Judgment (CN 10282)
Claiming an exemptionTo object to a bank levy or wage garnishment in the Special Civil Part, file a Certification in Objection (with a Certification of Service, and for a bank levy, three months of bank statements; for wages, an optional worksheet) with the Special Civil Part office in the county where the case was filed. There is no filing fee. Send copies to the other parties by regular and certified mail. A hearing is generally scheduled within 7 days.
Bank levy packet: https://www.njcourts.gov/sites/default/files/forms/12323_obj_bank_levy.pdf. The deadline to object was not stated in the packets read.
Source: NJ Courts, CN 12322 and CN 12323

Debt collectors and interest

Medical debt protectionsYes (Louisa Carman Medical Debt Relief Act, 2024). Medical creditors and collectors may not report medical debt for services on or after the law's effective date to credit bureaus, and credit bureaus may not report paid medical debt or medical debt under $500. Collection actions must wait at least 120 days after the first bill and an offer of a payment plan, with 30 days' notice. Interest on medical debt, including on judgments, is capped at 3% a year, and wages may not be garnished for patients with income under 600% of the federal poverty level. The Attorney General enforces the law.
Approved July 22, 2024.
Source: P.L. 2024, c. 48 (N.J.S.A. 56:11-56 to -63)
Interest rate limitsInterest on medical debt, including judgments on medical debt, may not exceed 3% a year.
Source: P.L. 2024, c. 48, § 5

Debt & Collections FAQ

What is the statute of limitations on debt in New Jersey?
6 years for a contract claim, written or oral (express or implied, not under seal).
How long can a creditor sue on a credit card debt in New Jersey?
6 years, the same as other contract claims.
How long does a court judgment last in New Jersey?
A writ for a wage execution can last for 20 years; other writs of execution (such as bank levies) expire after 2 years, but the creditor may request new writs or record the judgment as a lien on New Jersey real estate.
How much of my wages can be garnished in New Jersey?
Stricter than federal law. A wage execution is generally limited to the lesser of 10% of gross pay or 25% of disposable (net) pay, and pay up to 30 times the federal minimum hourly wage per week is protected. A wage execution is available only if the debtor earns more than $217.50 a week. The debtor can ask the court to reduce it for hardship.
How much money in a bank account is protected from creditors in New Jersey?
No general dollar exemption for bank accounts. Child support, welfare, Social Security, SSI, veterans' and unemployment benefits cannot be levied. A debtor whose account is frozen can file a Certification in Objection to Levy, with three months of bank statements, to show the money is exempt.
Can a creditor take my car in New Jersey?
No separate vehicle exemption. The debtor keeps $1,000 worth of personal property plus wearing apparel; a vehicle registered to the debtor with equity can be seized under a writ.
What protections apply to medical debt in New Jersey?
Yes (Louisa Carman Medical Debt Relief Act, 2024). Medical creditors and collectors may not report medical debt for services on or after the law's effective date to credit bureaus, and credit bureaus may not report paid medical debt or medical debt under $500. Collection actions must wait at least 120 days after the first bill and an offer of a payment plan, with 30 days' notice. Interest on medical debt, including on judgments, is capped at 3% a year, and wages may not be garnished for patients with income under 600% of the federal poverty level. The Attorney General enforces the law.
What is the maximum legal interest rate in New Jersey?
Interest on medical debt, including judgments on medical debt, may not exceed 3% a year.
How do I respond to a debt collection lawsuit in New Jersey?
In the Special Civil Part (cases of $20,000 or less), file a written answer with the court within 35 days of getting the summons. If you do not, a money judgment may be entered against you. The court publishes answer packets and forms for self-represented defendants.
How do I stop a garnishment or claim an exemption in New Jersey?
To object to a bank levy or wage garnishment in the Special Civil Part, file a Certification in Objection (with a Certification of Service, and for a bank levy, three months of bank statements; for wages, an optional worksheet) with the Special Civil Part office in the county where the case was filed. There is no filing fee. Send copies to the other parties by regular and certified mail. A hearing is generally scheduled within 7 days.

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General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.