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A:
A common tactic used by creditors attempting to collect money from you is to attach your wages, which essentially forces you to make a payment to them out of every pay check. This, along with a bank levy, are the two most commonly used tools in a creditor's toolbox. There are three things to bear in mind should a creditor attempt to attach your pay in New Jersey.
First, there is a cap on what can be collected out of each pay. This cap consists of the lowest amount of:
These caps are set by New Jersey law, and judges must follow them, but sometimes a judge will bend the rules and lessen the withholding after a hearing.
Second, you can only have one wage execution at a time. If you already have one in place when another creditor comes along, then that second levy does not get added to the first. On the other hand, that does not mean that the levy goes away; that creditor simply gets in line behind the first and waits for that one to be paid in full. Creditors can, in effect, line up at the payroll office waiting to get paid on a first come, first served basis.
Third, there are certain streams of income that cannot be attached, such as Social Security benefits, VA benefits, etc. If that is your sole source of income due to retirement or disability, then that income is safe.
There are defenses to a wage execution, but fighting one is not for the faint of heart. If you are facing a wage execution, contact my office right away to discuss your options.
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.