How a Credit Card Collects on a Judgment in New Jersey

While New Jersey protects consumer rights regarding debt collection practices, credit card companies can use the courts to collect payment. When the courts rule against the debtor, judgments may include immediate payment, installments or garnishments and levies. If the debtor does not comply with the judgment, creditors may request a property lien.

Lawsuit Process

Once a credit card becomes delinquent, creditors attempt to collect payment by contacting the debtor. If negotiations fail, credit card issuers may file a civil lawsuit. The court investigates the claim and the debtor's defense when applicable. A judgment for the creditor results in ordering the debtor to pay the amount due. Failure to respond to a court order may result in a default judgment against the consumer. If the debtor does not pay, creditors may file a writ of execution against wages, bank accounts or personal property.

Garnishment

Valid wage garnishment applies when the debtor makes more than $217.50 per week excluding exempt income types. A credit card company may garnish up to 10 percent of a person's income. Greater garnishment amounts apply for individuals with incomes exceeding 250 percent of the poverty level. Additionally, the debtor's bank account may be levied or personal property sold for the amount owed. Incomes exempt from wage or bank garnishments include Social Security benefits, child support, disability compensation, Veteran's benefits and unemployment funds.

Liens

If garnishment is not an option, a debt collector may file the civil judgment with the New Jersey Superior Court. Once recorded, the judgment effectively places a lien on real estate owned by the debtor. If the debtor attempts to sell real estate in New Jersey, the credit card company will be paid from the proceeds. Additionally, creditors may place a lien for previous out of state judgments by providing the New Jersey Superior Court with a copy of the judgment.

Consumer Debt Collection Rights

Creditors can attempt to collect valid debt by contacting the debtor. However, they cannot harass, threaten, intimidate or use misleading or deceptive practices to collect. A debt collector cannot collect amounts in excess of the original card agreement. Within five days of initial contact with a debtor, the creditor must provide a notice of the original creditor's name, total amount owed and consumer instructions on how to dispute the debt. Debt collectors violating consumer rights may be fined penalty fees, court and attorney costs and damages to the consumer.