| Q. |
I received a law suit which claims that that I owe a debt the Plaintiff - (The Creditor that filed the law suit against you). |
| A. |
If you are served with a Summons and Complaint and you believe you have a defense to the claim against you, you or your attorney must file a written answer or motion and proof of service with the deputy clerk of the Superior Court within 35 days from the date you received this summons, not counting the date you received it. If you do not file and serve a written answer or motion within 35 days, the court may enter a judgment against you for the relief plaintiff demands, plus interest and costs of suit.
Caution - It has been our experience that Defendants sometime contact the attorneys who represent the creditor who is suing them to dispute the debt. This will not stop a judgment from being entered. Failure to File an Answer to a Complaint May Cause You to Lose a Valid Defense to the Law Suit.
If you cannot afford an attorney, you may call the Legal Services office in the county where you live. Visit the following Directory for the best contact information. If you do not have an attorney and are not eligible for free legal assistance, you may obtain a referral to an attorney by calling one of the Lawyer Referral Services.
Representing Yourself - If you want to represent yourself, you must send an Answer to the court and the the filing fee to file your Answer. Read the information on the Summons Carefully. For an outline of how to file an answer, the evidence you should present to the Court and the fees to be paid when you file go to Pro SE Forms or
NJ Courts Online.
Representation by an Attorney - If the Complaint filed against you seeks payment of a substantial amount of money, it may be in your interest to retain an attorney to represent you. The law requires that before a judgment is entered. proof of the debt must be submitted to the Court in the form required by the Rules of Evidence. A defendant may also benefit from claiming so called Affirmative Defenses. It has been our experience that raising objections and defenses to claims against a defendant may result in either settlement of the claim for a lesser amount or dismissal of the complaint.
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| Q. |
What Action can a creditor take to collect a judgment enter against me by a New Jersey Court? |
| A. |
If judgment is entered against you, the Sheriff or Constable may levy on your bank accounts, garnish your wages or sell your property to pay all or part of the judgment.
Wage Garnishment - A Creditor obtains an Order from the New Jersey Court which requires an employer to deduct money from an employee's gross wages. Garnishment orders may not exceed 10% of the gross salary in New Jersey. Monies may not be withheld if disposable weekly earnings are less than $154.50 per week or $309.00 every 2 weeks. If a debtor has more than one creditor who has obtained a Court Order to allow garnishment, they will be applied in turn. For example, if garnishment orders are obtained by creditors A, B, C, and D, Creditor A will be paid until the amount of the garnishment is satisfied and then Creditor B and then C and then D.
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| Q. |
Will filing a bankruptcy petition prevent wage garnishment and bank levy & sheriff sale. |
| A. |
When a bankruptcy or petition is filed it automatically stays (stops) all collection activity against the petitioner. The intent of the bankruptcy law is to allow consumer debtors who have acted in good faith to get a fresh state. In most cases the bankruptcy law allows the discharge of all consumer debts. In some cases a consumer debtor may even recover property taken from them by a creditor prior to the date of filing of the bankruptcy.
However, whether a consumer debtor can discharge debt can only be determined after a fully evaluation of the income; the net value of all the debtors property; the type of debt owed and when and for what purpose the debt was incurred. It is your interest to consult a bankruptcy attorney about the protection bankruptcy law may provide.
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