How to Collect on a Court Judgment in New Jersey
The jury found in your favor, or the judge signed the judgment. Weeks later, your bank account looks exactly the same. Winning a lawsuit is only the first step--collecting the money you're owed can be a separate, and sometimes difficult, process. If the debtor (the person who owes you money) agrees to pay voluntarily, the process may be straightforward. However, when they refuse or fail to pay, Post-Judgment Collection becomes necessary.
As the creditor, you are not only entitled to the judgment amount but also post-judgment interest and certain collection fees. It’s important to take the appropriate legal steps to ensure you receive the full amount you’re owed.
Below are some common tools available to creditors in New Jersey for enforcing a money judgment:
Wage Garnishment
If the debtor is employed in New Jersey and earns more than $217.50 per week, you may be able to garnish their wages. New Jersey limits wage garnishment to the lesser of:
- 10% of the debtor’s gross income, or
- 25% of their disposable income.
Certain sources of income--such as welfare, Social Security, SSI, veterans’ benefits, and unemployment--are protected and cannot be garnished.
Bank Account Levy
A bank levy allows a creditor to freeze and withdraw funds directly from the debtor’s bank account. This process is executed through the sheriff’s office and must follow a court order.
Liens on Property
A lien is a legal claim against a debtor’s assets. In New Jersey, a creditor can place a lien on real property (like a home) or personal property (such as a vehicle). This lien can prevent the debtor from selling or refinancing the property until the debt is satisfied--or can ultimately lead to a forced sale.