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Ray, Lawyer
Category: Bankruptcy Law
Satisfied Customers: 41020
Experience:  30 years in civil, probate, real estate, elder law
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I just received a notice to judgement debtor in NJ. Is there

Customer Question

I just received a notice to judgement debtor in NJ. Is there a remedy? This was a claim in another state's court and registered here in NJ. What can be liened?
Submitted: 11 months ago.
Category: Bankruptcy Law
Expert:  Ray replied 11 months ago.

Hi and welcome to JA. Ray here to help you today.

Customer: replied 11 months ago.
did you see the question?
Expert:  Ray replied 11 months ago.

Yes give me a minute

Expert:  Ray replied 11 months ago.

NJ is not a very debtor friendly state.

Here are the few exemptions..


Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- N.J. Stat. Ann. § 25:2-1(b)

Homestead Exemption (Note 3): None

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): None

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): $500/month -- N.J. Stat. Ann. § 17B-24-7

The ones you need to watch out for here are they can go after your homestead, they can garnish wages, and they can garnish your bank account.

You have option here to file Chapter 7 to discharge the judgment and any other debts you may have here.

I appreciate your patience, let me know if you have more follow up.

Expert:  Ray replied 11 months ago.

Law for reference

A:17B-6. Exemptions.

a. The following property of a judgment debtor, who is either anatural person resident in the State of New Jersey or the estate of adecedent who was resident in the State of New Jersey, shall be exemptfrom a writ of execution pursuant to this chapter:

(1) property that federal or other State statute forbids taking tosatisfy a State judgment;

(2) wearing apparel of the judgment debtor other than furs andjewelry; and

(3) goods, cash, bank deposits and similar financial propertycollectible as cash whose aggregate value does not exceed $1,000.00or the amount determined pursuant to subsection b. of this section. Banks and financial institutions may assess a fee of no more than$25.00 per levy against the judgment debtor.

b. The exemptions provided in this section shall not apply if thejudgment being enforced:

(1) arises from the purchase of the same property against whichcollection is sought; or

(2) is for child support; or

(3) is for the collection of taxes or assessments.

(Source: 2A:17-19)

2A:17B-7. Selection of exempt personal property.

a. In consultation with the collection officer, the judgment debtormay select any item or items of personal property whose aggregate value is not greater than the values allowed under paragraph (3) ofsubsection a. of N.J.S.2A:17B-6. The selected item or items shall beexempt from levy.

b. The collection officer shall prepare an inventory of the items ofpersonal property selected for exemption by the judgment debtor andshall include an impartial and honest evaluation of each iteminventoried. The value of an item shall be the price judged to be thatfor which the item would be sold at public sale. Copies of theinventory shall be given to the debtor and to creditor or their counsel,if represented.

c. Within 10 days after receipt of the inventory, either the debtoror the creditor may dispute the value of any item in the inventory bynotice to the other party by submitting a written statement under oathconcerning the value and applying to the court to make adetermination of the value of the items in dispute. The court mayreceive or require testimony or evidence, including expert appraisalsas necessary to make its determination.

d. If neither party disputes the values in the inventory, thejudgment debtor, on the basis of the inventory values, shall selectitems whose aggregate value is not greater than the values allowedunder paragraph (3) of subsection a. of N.J.S.2A:17B-6. These itemsshall be exempt from levy. If either party disputes the values in theinventory, the judgment debtor, on the basis of the values determinedby the court, shall select items whose aggregate value is not greaterthan the values allowed under paragraph (3) of subsection a. ofN.J.S.2A:17B-6. These items shall be exempt from levy.

(Source: 2A:17-20 through 2A:17-28)

2A:17B-8. Receipt of writ of execution.

The collection officer shall record on a writ of execution the dateand time it was received.

(Source: 2A:17-11)

Customer: replied 11 months ago.
can they take one car?
Expert:  Ray replied 11 months ago.

Yes they can take a car here, you can exempt one .You can transfer the car if paid for to a relative here ahead of creditors..

Customer: replied 11 months ago.
This was on my personal name. How about my spouse's items? Can they come after her car etc?
Customer: replied 11 months ago.
is there a certain percentage on the wages?
Expert:  Ray replied 11 months ago.

No only yours here if the judgment in your name.

Limits on Wage Garnishment in New Jersey

There are limits to how much money can be garnished from your paycheck. The idea is that you should have enough left to pay for living expenses.

Federal law places limits on wage garnishment amounts. The states are free to impose stricter limits, and under certain circumstances, New Jersey has done so. That means the both federal and state law dictate how much can be garnished in New Jersey. Here are the rules.

Under federal law, your creditor can garnish:

  • 25% of your disposable earnings, or
  • your disposable earnings less 30 times the federal minimum wage (currently $7.25), whichever is less.

If the amount based on the New Jersey law is less than the amount permitted under federal law, your creditor may only take the lesser amount. Below are the rules under New Jersey law:

  • up to 10% of your income if you earn no more than 250% of the federal poverty level for a household of your size, or
  • up to 25% if you earn more than 250% of the federal poverty level.

Usually it is going to be the 25% here.

Thanks again.

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