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What do I do if a creditor attaches my wages in NJ?

 

A:

A common tactic used by creditors attempting to collect money from you is to serve your employer with a wage execution, which essentially forces them to deduct a payment to them out of your pay check.  This, along with a bank levy, are the two most commonly used tools in a creditor's toolbox, and they each have their pros and cons.

Bank levies are a "roll of the dice" in hopes of hitting a peak in your account's running balance.  If timed right, it can result in a lot of money collected right away, with no limit other than the balance owed.  A wage attachment, or execution, is more likely to result in money paid, but there are limits, and the debt can be paid out over months or even years.   But what do you do if it happens to you?

What Do You Do?

A creditor seeking to attach wages must first put you and your employer on notice by filing and serving a Notice of Application for Wage Execution.  You would then have ten (10) days to file a written objection witht he court and have them schedule a hearing.  If you do nothing, an Order for Wage Execution will issue and, barring attachments with a prior claim, the deductions will start.  If you file the objection, there are a limited number of defenses, among them:

  • You no longer work for that employer (although the creditor will eventually find that out and the attachment will fail)
  • You already have a wage attachment in place (in which case the creditor will simply preserve its place in line, unless the current one is permanent, such as for alimony or child support)
  • The stream of income is exempt (e.g. Social Security benefits)
  • Your gross wages are below $217.50 per week.
In essence, a wage attachment is a wakeup call to do something about your outstanding debt.  You need to speak to an attorney as soon as you get the initial notice to see if you have any applicable defenses.  I have helped many people facing these levies to address these debts and get on with their lives.  Contact my office for a free consultation.

 




Have more questions about bankruptcy?  Get the answers to the most frequently asked questions by downloading my free book, Top Questions People Ask About Filing Bankruptcy in New Jersey.  It will give you the answers you need all in one place.  Then call me at 888-857-8418 or contact me through this site for an appointment for a free consultation to discuss your case.





The Law Office of Steven J. Richardson serves New Jersey, including:  Gloucester, Camden, Burlington, Salem, Cumberland and Atlantic Counties and surrounding New Jersey communities, including Woodbury, Colonial Manor, North Woodbury, Woodbury Heights, Deptford, Thorofare, Gloucester City, Washington Township, Blackwood, Brooklawn, Westville and Pitman.

Richardson Law Offices
40 Newton Avenue
Woodbury, NJ 08096
Phone: (856) 686-9910
Fax: (856) 686-9911