Expert: Jason Shear, Esq. - 11/20/2008

Question
In a previous answer it was stated that in NJ the maximum  garnishment is 10% of gross income.  However, I have heard that if your income is above a certain level, then the max garnishment is up to the discretion of the court, up to the federal max of 25% of disposable income.  Is the limit really 10% or does it depend on your income?

Answer
Luther:

Hope all is well.  In New Jersey the limit is 10% of gross income or 25% of disposable earnings, whichever is less, but no execution on gross wages of $154.50 or less a week.  However, in both the Law Division and Special Civil Part, in order to levy execution against your wages, the judgment creditor must provide notice to you that a wage execution is being sought.  

In New Jersey, the Notice must state that an application is being made for a wage execution; you have 10 days to notify the court clerk and the collection attorney that you object to the wage execution and the reasons for the objection; and, if you object within 10 days, a hearing will be held to determine whether a wage execution should be issued.  

In the State of New Jersey only one execution against your wages may be satisfied at a time.  Your employer may retain 5% of the funds deducted under the wage execution as compensation for your employer's administrative expenses.  

Hope this was helpful.  Good luck.  If you have any other questions please do not hesitate to write or call.

Very truly yours,
Jason Shear, Esq.
NY Consumer Lawyer
Admitted in NY & NJ
(716) 566-8988