New Jersey Wage Garnishment Rules

If a debtor is unable to pay a creditor, the creditor may seek a court order to recover the money owed. These judgments can often be enforced by a garnishment, which is a court order that allows the creditor to take money directly from the debtor's income or paycheck. New Jersey allows for garnishments as long as the creditor follows specific rules.

Money Limits

New Jersey allows creditors to garnish up to 10 percent of a person's gross salary. If the debtor earns less than $154.50 a week or $309 every two weeks, no garnishments can be withheld. For any debt owed, the creditor can also charge the debtor interest up to 6 percent per year. New Jersey courts can generally allow garnishments of earned income, but creditors cannot garnish welfare or unemployment benefits, Social Security benefits or income or veterans' benefits.

Time Limits

Depending on the kind of debt for which the garnishment is sought, the creditor may be limited in the amount of time they have to collect. New Jersey differentiates between four different kinds of debts and limits the amount of time a creditor has to collect on them accordingly. The limits are six years for open accounts and written contracts and 20 years on domestic and foreign judgments.

Generally, open accounts are those that have no set limit, like a credit card. A written contract is a debt incurred because of written agreement between the parties, like a line of credit or loan. Domestic judgments are court orders entered by a New Jersey court. Foreign judgments are those issued by courts outside New Jersey.

Process

If a creditor wants to garnish wages in New Jersey, she must petition the court for a writ of execution. This is a legal order that requires the debtor's employer to pay the garnished funds directly to the court officer. The writ must state the amount of debt, the damages actually done, the amount of interest charged, the names of the parties and the creditor's basis for the garnishment (usually the judgment issued by the court). Once the writ is granted, the court orders the debtor's employer to pay the funds to the court, bypassing the debtor. The court then pays the creditor.