New Jersey debt: six years to sue, a 10% wage cap, and long-lived judgments
New Jersey gives creditors six years to sue on most consumer debts, including credit cards. Its wage garnishment cap is lower than the federal one, usually 10% of gross pay, but a judgment can be enforced for up to 20 years, so avoiding one matters more than in most states.
Free check first. If a dispute letter makes sense, it costs $29 ($19 for military, veterans, seniors and people with disabilities) with three follow-ups.
Who is asking you to pay?
Look at the company name at the top of the letter or in the caller ID.
New Jersey at a glance
- Most consumer debt
- 6 years (N.J.S.A. 2A:14-1)
- Credit cards
- 6 years
- Restarting the clock
- A voluntary payment may
- Wage garnishment
- Usually 10% of gross pay
- State's own debts
- Up to 25% of gross, with limits
- Judgments
- Up to 20 years
- Deceptive collection
- Consumer Fraud Act, triple damages
General information about New Jersey law, with sources below. Not legal advice.
Six years to sue in New Jersey
Six years for most contract and open-account debt, including credit cards (N.J.S.A. 2A:14-1). Some debts differ: one New Jersey firm notes car loans have four years, and retail-only store cards may be treated differently depending on the contract.
A voluntary payment may restart the six years. Federal law bars suits and threats of suits on time-barred debt.
Wage garnishment: the 10% cap
A wage execution is limited to the least of 10% of gross weekly pay, 25% of disposable earnings, or the amount above 30 times the federal minimum wage, so for an ordinary creditor the 10% of gross figure usually controls (N.J.S.A. 2A:17-56).
The State itself can seek up to 25% of gross earnings for its own debts, but only if the person's income stays above 250% of the federal poverty level. A credit card company, hospital or debt buyer gets the ordinary cap.
New Jersey's protections sit on top of federal law; our page on stopping a wage garnishment explains both.
Why a New Jersey judgment is worth avoiding
A judgment can be enforced for up to 20 years, and a wage execution stays in place until the judgment is paid or the job ends. A lawsuit you ignore can follow you for two decades, so answer any summons by its deadline, even on an old debt.
Before it gets that far, the federal dispute right applies: a written dispute inside the validation period makes the collector stop until it mails verification.
Compare the 6-year limit with every other state in our statute of limitations on debt by state table.
Limits vary a lot between states: by comparison, Oregon sets 6 years and Wisconsin sets 6 years for similar debts.
Not sure a New Jersey collector is genuine? Check our guide to fake debt collectors, then ask for validation in writing.
New Jersey residents often hear from national agencies like Cavalry SPV and ConServe; see our guides to each.
For the court side of a New Jersey debt, from the summons to a possible judgment, see how to defend a debt collection lawsuit.
New Jersey's Consumer Fraud Act
The New Jersey Consumer Fraud Act (N.J.S.A. 56:8-1 and following) covers deceptive debt collection and provides for triple damages and attorney's fees.
Debt buyers based in New Jersey include Velocity Investments in Wall Township.
Questions people ask about debt in New Jersey
What is the statute of limitations on credit card debt in New Jersey?
Six years under N.J.S.A. 2A:14-1, the same as most contract and open-account debts.
How much of my paycheck can be garnished in New Jersey?
Usually no more than 10% of gross pay. The limit is the least of 10% of gross, 25% of disposable earnings, or the amount above 30 times the federal minimum wage.
How long does a judgment last in New Jersey?
Up to 20 years, and a wage execution stays in place until the judgment is paid or the job ends.
Does a payment restart the clock in New Jersey?
A voluntary payment may restart the six years. Check your dates before paying on an old account.
What can I do about deceptive collection in New Jersey?
The Consumer Fraud Act covers deceptive debt collection and allows triple damages and attorney's fees.