Wage Garnishments in New Jersey

What Is Wage Garnishment?

Wage garnishment is when money is taken directly from your paycheck to pay off a debt. In New Jersey, this process is sometimes called wage execution or wage attachment. It usually happens after you’ve fallen behind on a loan, credit card, child support, or taxes.

Most of the time, a creditor has to go to court and get a judgment before they can garnish your wages. This court order is known as a garnishment order.

Both state and federal laws apply to wage garnishment, but New Jersey law plays the biggest role in how it works in the state.

Who Can Garnish My Wages in New Jersey?

Creditors, debt collectors, and debt buyers may all be able to garnish your wages. But they usually need to sue you and get a court judgment against you first.

⚠️ The IRS, federal student loan servicers, and parents with a child support order can also garnish your wages, but they don't usually need a court judgment first.

For example, if you owe child support, the original order of child support allows for income withholding from the non-custodial parent. If you owe federal taxes, the IRS can garnish your wages using a wage levy. 

This article focuses on wage garnishment for consumer debts.

New Jersey Wage Garnishment Process 

If a creditor in New Jersey would like to use a wage garnishment to collect on a debt, they first have to file a lawsuit in court to get a money judgment against you. 

They can either win the lawsuit and receive a judgment after a trial, or they can win a default judgment if you don’t show up to defend your case.

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Notification & Document Requirements

Once the creditor has the money judgment, they need to notify you and all other parties of the wage garnishment and also file the following documents with the court: 

• Notice of Application for Wage Execution: The notice of application is to inform you of the creditor’s intention to establish wage garnishment against you.

• Certification of Service: This certificate is to prove that the creditor actually notified you of the wage garnishment by sending you the notice of application.

  • In New Jersey, the creditor can notify you in person, via certified mail with a return receipt requested, or by regular mail. 

• Certification in Support of Application for Wage Execution: The certification lists the amount you owe, your employer, and other information the court needs to order the wage garnishment and calculate the amount.

After the creditor has notified you and all other parties involved of the wage garnishment application, they must wait to see if you object.

🗓️ If you were notified via certified and regular mail, then you have 13 days to object to the garnishment. If you were served in person, then you have 10 days to object. 

If you object, then a hearing will be scheduled. At the end of the hearing, the judge will determine if a wage garnishment is appropriate and then issue an order approving the application for the wage garnishment.

How To Object to a Wage Garnishment in New Jersey

To object to the application for wage garnishment, you must notify all parties of the objection and file the following documents with the court: 

• Certification in Objection to Wage Garnishment: This document explains why you’re objecting to the garnishment or why you’re asking the court to reduce the wage garnishment.

• Certification of Service: A certification of service is a document that shows you properly notified the other parties involved and their lawyers.

  • To properly notify all other parties, you must send them copies of all the documents you filed with the court

• Other supporting documents: If you have any documents to support your objection, you must file those documents with the court as well.

If you’re objecting to the garnishment amount and want it reduced, then you also have to file a Wage Garnishment Worksheet. All of the documents you need to file an objection, along with step-by-step instructions, can be found in New Jersey’s civil legal assistance packet, How to Object to a Wage Garnishment in a Special Civil Part Case. 

How Much of My Paycheck Can Be Taken by Wage Garnishment?

In New Jersey, creditors can't take more than what they’re owed according to the judgment. This typically includes the debt amount plus fees, costs, and accumulated interest.

Creditors are also limited in how much they can garnish from you each week. These limitations are determined by federal law and state law. Some states, like New Jersey, provide debtors more protection than federal law. 

Under New Jersey law, a creditor can garnish the lesser of the following options:

• 10% of your income if you earn up to but not more than 250% of the federal poverty level for a household of your size, or 

• 25% of your disposable earnings, also called your disposable income, for that week, or 

• The amount, if any, by which your disposable weekly earnings exceed $217.50. This is 30 times the current federal minimum wage.

Disposable income is not the same as your gross wages.

💡 Disposable income is the amount of your paycheck left after all necessary deductions have been made. Regardless of the above, only one wage garnishment can be in effect at a time, meaning that you can't be subject to two wage garnishments at the same time.

Certain income is also exempt from garnishment in New Jersey. This includes Social Security and disability benefits, veteran’s benefits, and workers’ compensation, among others. 

How To Stop a Garnishment in New Jersey

If a creditor is garnishing your wages, there are generally two ways to stop the garnishment. You can either pay the amount owed by paying a lump sum or allowing the garnishment to continue, or you can file for bankruptcy. In some cases, you can negotiate a repayment plan directly with the judgment creditor to stop the garnishment.

Chapter 7 is the most common type of consumer bankruptcy. Once you file a case, an automatic stay goes into effect, which stops most wage garnishments and other debt collection actions. Chapter 7 can wipe out common consumer debts like credit card bills, medical debt, personal loans, and more.

If you’re considering bankruptcy, you can take Upsolve's free two-minute screener to see if you qualify to use our free filing tool.

Are There Any Resources for People Facing Wage Garnishment in New Jersey?

If you need help with your wage garnishment, resources are available: 

• Legal Services of New Jersey (LSNJ): LSNJ is a legal aid organization that provides legal information and advice to qualifying New Jersey residents.

• LSNJ Law: LSNJ Law is a part of LSNJ. This website provides legal information on various topics, including consumer credit and debt collection. 

• Volunteer Lawyers for Justice: VLJ is a statewide pro bono provider that helps residents of New Jersey with a variety of legal issues, including consumer law issues.

• Consumer League of New Jersey: This nonprofit provides general information about your legal rights as a consumer.