Can credit card companies garnish wages in NJ?
Daniel Santos
Updated on February 03, 2026
For example, if you are behind on credit card payments or owe a doctor’s bill, those creditors cannot garnish your wages (unless they sue you and get a judgment). Your wages can be garnished without a court judgment for: unpaid income taxes.
Can a credit card company sue you in NJ?
Yes. In fact, these days it is quite common for creditors to file lawsuits to collect debts. In New Jersey, the credit card company usually files their lawsuit in the county where you live. Moreover, most credit card lawsuits are filed in the Special Civil Part Courts.
Can credit card tips be garnished?
In other words, the federal rules do not allow garnishment of cash tips or tips left on credit cards. The tips are not paid through a pay check, they are not collected by the Restaurant and distributed to the employee at a later time, and the Restaurant has no control over the employee’s tips.
How long can creditors pursue a debt in NJ?
6 years
| New Jersey Statute of Limitations on Debt | |
|---|---|
| Mortgage debt | 6 years |
| Medical debt | 6 years |
| Credit card | 6 years |
| Auto loan debt | 4 years |
How long can a creditor come after you in NJ?
six years
New Jersey has a statute of limitations of six years on all types of loans, including those from written contracts and credit cards. If a consumer’s debt is more than six years overdue, the lender can no longer take action in order to collect the debt. N.J.S.A.
Can a creditor garnish your wages in New Jersey?
New Jersey law limits the amount that a creditor can garnish (take) from your wages for repayment of debts. The New Jersey wage execution laws (also called wage garnishments or attachments) are even stricter than federal wage garnishment laws. For the most part, creditors with judgments can take only 10-25% of your wages.
Can a credit card company garnish your paycheck?
Credit card companies can garnish (take) your wages just like most other creditors. However, before taking part of your paycheck, the credit card company must first: sue you in court. obtain a money judgment, and. get a court order directing your employer to deduct funds.
How much can employer deduct from child support garnishment in NJ?
In New Jersey, an employer can subtract 5 percent of the amount being sent to the creditor, not from the debtor’s wages. An employer can deduct a fee of $1 directly from the debtor’s wages for processing a garnishment for child support.
How much can an employer deduct from a creditor garnishment?
Some states allow employers to deduct a small fee directly from the debtor’s wages for administering a creditor garnishment. In New Jersey, an employer can subtract 5 percent of the amount being sent to the creditor, not from the debtor’s wages.
