A New Jersey Collections Attorney Explains If Your Unemployment Benefits Can Be Touched by Creditors

A common tactic used by creditors attempting to collect money from you is to attach your wages, forcing you to pay them out of every paycheck. This tactic and a bank levy are the two most commonly used tools in a creditor's toolbox if you are employed. In cases where you may have been laid off or lost a job due to situations such as the COVID-19 pandemic, you may question if a creditor can collect debt from your unemployment benefits. An experienced New Jersey debt relief lawyer at Richardson Law Offices can help. 

Unemployment Benefits and Garnished Wages

A creditor cannot take your New Jersey unemployment benefits to pay off a debt. There are certain streams of income that cannot be attached, and unemployment benefits are one of them. Other forms of income that a creditor cannot touch include:

  • Social Security benefits
  • VA benefits
  • Pension money (other than IRA or 401k withdrawals)
  • Child support

If any of these are sources of income, you can be guaranteed that your income will be safe from creditors.

Steps to Take If There is a Judgement Against You

Fortunately, there is no mechanism to garnish unemployment. A creditor can't just serve an execution writ on the New Jersey Department of Labor. But that doesn't mean that you should feel safe and do nothing. If a creditor has a judgment against you, they will eventually find a way to force payment from you. You want payment to be on your terms, not theirs.

One option is to teach out to the creditor's attorney to negotiate an affordable payment plan. Getting the debt under control will certainly make your life much easier and eliminate the stress. As a former creditor's attorney, Steven Richardson has helped many people deal with situations like this by negotiating on their behalf.

If you want more information on how to fight back against your creditors, download the free book The Biggest Secrets Your Creditors Don't Want You to Know. Become empowered and protect your rights.

Are you a visual learner rather than a reader? Do you enjoy watching YouTube to learn new things? Then check out our 3-part video series on how creditors use lawsuits in New Jersey to collect debts. Just click here for more information on how to get the links to get started.

Need Help Making a Deal?

If you live in New Jersey, owe at least $10,000 to a creditor, know you need help and are ready to take action, just click this link to schedule a call with attorney Steven Richardson to discuss your case. You don't want to wait until they have seized some of your assets. 

Steven J. Richardson
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Bankruptcy, Collections, Student Loan, DUI and Traffic Court attorney in Woodbury, NJ.