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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

  1. 1

    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. 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.

  3. 3

    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.

  4. 4

    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.

  5. 5

    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.

  6. 6

    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.

  7. 7

    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.

Open the Claim of Exemption guide

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CLAIM OF EXEMPTION / OBJECTION TO WAGE EXECUTION (NEW JERSEY)

Filed under N.J.S.A. 2A:17-50 et seq. and N.J.S.A. 2A:17-56, and New Jersey Court Rule 4:59-1. The judgment debtor states that some or all of the wages or funds being garnished are exempt and objects to the wage execution or asks that the amount withheld be reduced.

  1. COURT AND CASE Court that issued the judgment: [COURT NAME] Case or docket number: [CASE NUMBER] Wage execution number, if any: [WAGE EXECUTION NUMBER]

  2. PARTIES Judgment creditor: [CREDITOR NAME] Judgment debtor (you): [DEBTOR NAME] Debtor address: [DEBTOR ADDRESS] Employer served with the wage execution: [EMPLOYER NAME]

  3. WHAT IS BEING GARNISHED [ ] Wages from my employer named above [ ] Funds in my account at: [BANK NAME] Approximate amount being taken each pay period: $[AMOUNT]

  4. EXEMPTION CLAIMED / REASONS THE ORDER SHOULD NOT STAND I claim that the money is exempt or the withholding is too high for the following reason(s): [ ] The wage execution takes more than 10 percent of my income allowed under N.J.S.A. 2A:17-56. [ ] My weekly disposable earnings are below 30 times the federal minimum wage ($217.50) and are protected. [ ] The money comes from an exempt source: [SOCIAL SECURITY / DISABILITY / VETERANS BENEFITS / PENSION / OTHER]. [ ] The amount withheld leaves me unable to support myself or my family. Amount I ask the court to protect: $[AMOUNT CLAIMED EXEMPT]

  5. SOURCE OF THE FUNDS Describe where the money comes from: [DESCRIPTION OF WAGES OR DEPOSITED FUNDS]

  6. FINANCIAL STATEMENT (attach if the court requires one) Monthly take-home income: $[INCOME] Monthly necessary expenses: $[EXPENSES] Number of people I support: [NUMBER OF DEPENDENTS]

  7. REQUEST FOR HEARING I ask the court to set a hearing on this objection and to protect the exempt money until the hearing is held. If I object after the wage execution has issued, I understand the hearing is set within 7 days of the clerk receiving this objection.

  8. VERIFICATION I declare under penalty of perjury under the laws of the State of New Jersey that the statements above are true and correct.

Debtor signature: [SIGNATURE] Printed name: [NAME] Date: [DATE]

Note: File this written objection with the clerk of the court that issued your judgment and wage execution. New Jersey gives you 10 days after service of the notice of application to object before the order is entered, and you may object at any time afterward. Confirm the current forms and procedure, or have this reviewed by an attorney, before you file.

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.

Frequently Asked Questions

A New Jersey claim of exemption is a written statement you file with the court to protect wages or bank funds from a garnishment. It tells the court that some or all of the money is exempt, meaning the law does not let a creditor take it. You file it with the clerk of the court that issued the judgment, and the court then holds a hearing on your claim.

A wage execution is what New Jersey calls wage garnishment. After a creditor wins a money judgment, it applies to the court for an order that directs your employer to withhold part of each paycheck and send it to the creditor. You get a notice of the application first, which gives you a 10-day window to object before the order is entered.

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. On top of that, weekly disposable earnings below 30 times the federal minimum wage, which is 217.50 dollars, cannot be garnished at all.

When the creditor first applies for a wage execution, you have 10 days after you are served with the notice to tell the court and the creditor in writing why the order should not be entered. You can also object or ask to reduce the amount at any time after the order issues. Because money is withheld while the objection is pending, file as soon as you learn of the garnishment.

Social Security, Supplemental Security Income, disability, veterans benefits, and many pensions and public benefits are exempt from garnishment for ordinary debts, no matter how much you owe. A baseline share of ordinary wages is also protected, and lower earners are shielded entirely. If exempt benefits are frozen in a bank account, a claim of exemption is how you get them released.

New Jersey does not have a separate head-of-household exemption, but family size still matters. The 10 percent cap on wage execution can only be exceeded when your income is more than 250 percent of the federal poverty level for your household size, so supporting more dependents raises that threshold. You can also object and ask the court to reduce the amount withheld based on your finances.

You file your written objection with the clerk of the court that issued the judgment and the wage execution. You state the reasons the order should not be entered, or ask to reduce the amount withheld. The clerk sets the matter for a hearing, and if you object after the order has issued, that hearing is held within 7 days of the clerk receiving your objection.

The court reviews your objection and sets a hearing. If you object after the wage execution has issued, the hearing happens within 7 days of the clerk receiving your objection. At the hearing you show that the money is exempt or that the amount withheld leaves you unable to meet basic needs, and the court can stop, reduce, or leave the garnishment in place.