New Jersey Claim of Exemption
File a New Jersey claim of exemption to stop wage garnishment. Learn the 10 percent cap, what income is exempt, and how to object to a wage execution.
Introduction
A New Jersey claim of exemption is a written request you file to protect some or all of your wages or bank funds from garnishment. An exemption is money the law says a creditor cannot take. New Jersey calls wage garnishment a wage execution: after a creditor wins a judgment, it can ask the court to order your employer to withhold part of each paycheck. You can push back in writing. When the creditor applies for a wage execution, you have 10 days after you are served to tell the court and the creditor why the order should not be entered, and you can object or ask to reduce the amount at any time after the order issues. New Jersey caps ordinary wage garnishment at 10 percent of your disposable income, and lower earners are protected entirely. Money is withheld while your objection is pending, so act quickly. DocDraft prepares a New Jersey claim of exemption from your details, and attorney review is available before you file.
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Key Things to Know
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A New Jersey claim of exemption is a written statement you file with the court to protect some or all of your wages or bank funds from garnishment. It tells the court the money is exempt, meaning the law does not let a creditor take it.
- 2
New Jersey calls wage garnishment a wage execution. Under Court Rule 4:59-1, you have 10 days after you are served with the notice of application to tell the court and the creditor why the order should not be entered, and you can object at any time after the order issues.
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New Jersey caps ordinary wage garnishment low. Under N.J.S.A. 2A:17-56 a creditor can take no more than 10 percent of your income, unless your income exceeds 250 percent of the federal poverty level for your family size, in which case the court may allow a larger percentage.
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A federal floor protects lower earners. If your weekly disposable earnings are less than 30 times the federal minimum wage, which is 217.50 dollars, they are shielded, so a paycheck below that line generally cannot be garnished at all.
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Some income is exempt no matter the debt. Social Security, disability, veterans benefits, and many pensions and public benefits are protected, and a claim of exemption is how you free those funds if a bank has frozen them.
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Money is withheld while your objection is pending. Because each paycheck is garnished until the court resolves your objection, filing your written statement quickly limits what you lose.
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Filing an objection gets you a hearing. If you object after the wage execution has issued, the court holds a hearing within 7 days of the clerk receiving your objection, where you show the money is protected.
Key decisions before you file
Before you file a Claim of Exemption in New Jersey, a few decisions shape the document: which option to choose and what each one means. The Claim of Exemption guide walks through them.
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New Jersey Requirements for Claim of Exemption
New Jersey Filing Deadline and Office
File the New Jersey claim of exemption with the correct office, the court or the levying officer as New Jersey directs, within the state's window after the garnishment is served. Money is usually held until the claim is decided, so filing late can forfeit wages the law would otherwise protect.