New Jersey Debt Collection Laws

Garnishment limits, exemptions, and consumer protections specific to New Jersey

New Jersey (NJ) - At a Glance

State Consumer Protection LawNew Jersey Consumer Fraud Act (CFA)
SourceN.J.S.A. ยง 56:8-1 et seq.
Covers Original Creditors?YES - covers original creditors too
Max Wage Garnishment10% of disposable earnings (federal minimum; may be lower)
Bank Levy Exemption$1,000 in bank
Homestead ExemptionNone

Key Protections in New Jersey

  • CFA covers original creditors and collectors
  • Very low wage garnishment cap (10%)
  • Treble damages for CFA violations
  • Attorney fees awarded to winning plaintiffs

Wage Garnishment in New Jersey

After a court judgment, creditors in New Jersey can garnish up to 10% of your disposable earnings (earnings after legally required deductions). This is the federal cap - New Jersey follows federal law on this limit.

Exempt from garnishment: Federal benefits (Social Security, SSI, VA benefits) cannot be garnished by private creditors regardless of state law.

File a Complaint in New Jersey

If a debt collector violates the FDCPA or New Jersey Consumer Fraud Act (CFA):