Your debt collection rights in New Jersey
In New Jersey, your main protection against collectors is the federal Fair Debt Collection Practices Act, as the Third Circuit applies it. A creditor generally has six years to sue on a contract debt, a promise to pay restarts the clock only if it is in a signed writing, and a wage execution may not take more than 10 percent of your gross pay in the ordinary case.
A letter arrives about a debt from years ago, offering to "settle" for a fraction. Or a collector says it will take your paycheck. Or a summons from the Special Civil Part is stuck in your door. If you live in New Jersey, the rules come from federal law, New Jersey statutes and the federal appeals court that sits over New Jersey.
Here is what applies, in one place.
The federal Act does most of the work
The FDCPA covers third-party collectors, debt buyers and lawyers who regularly collect consumer debts (15 U.S.C. § 1692a(6)). In New Jersey, as everywhere, a collector may not:
- Call before 8 a.m. or after 9 p.m. (§ 1692c(a)(1)), or keep calling after a written request to stop (§ 1692c(c)).
- Tell your family, friends or employer about the debt (§ 1692c(b)).
- Threaten action it cannot take or does not intend to take (§ 1692e(5)), or misstate the amount or legal status of the debt (§ 1692e(2)(A)).
- Collect any amount not authorized by the agreement or permitted by law (§ 1692f(1)).
- Sue you in the wrong place. A collector's suit must be filed where you signed the contract or where you live (§ 1692i(a)(2)).
The Act allows actual damages plus statutory damages of up to $1,000, and requires a company found liable to pay the consumer's reasonable attorney's fees and costs. The deadline is one year from the violation (15 U.S.C. § 1692k).
Six years, and a signed writing
New Jersey's statute of limitations for contract and account actions is six years after the claim accrues (N.J.S.A. 2A:14-1). Two details matter.
First, an acknowledgment or promise to pay made only in words does not restart the clock on a simple contract claim. It must be in a writing you signed. Do not sign anything that acknowledges an old debt before you know where you stand.
Second, once the six years have run, a debt collector may not sue or threaten to sue on the debt (12 C.F.R. § 1006.26(b)). Bills to shorten New Jersey's period for consumer debts have been introduced; none had been enacted as of September 2026.
The Third Circuit on "settlement" letters
New Jersey sits in the Third Circuit. In Tatis v. Allied Interstate, LLC, 882 F.3d 422 (3d Cir. 2018), a New Jersey consumer received a letter offering "$128.99 in settlement" of a gym debt more than ten years old, well past the six-year limit. The district court dismissed her case because the letter did not threaten suit.
The Third Circuit reversed. It held that a letter offering to "settle" a time-barred debt could mislead the least sophisticated debtor into believing the debt was legally enforceable, which can violate § 1692e. It joined the Fifth, Sixth and Seventh Circuits. It also said a settlement offer is not deceptive in every case and did not require any specific disclosure. See the Tatis story and zombie debt.
After a judgment: the 10 percent rule
The New Jersey courts' own wage execution form, issued under N.J.S.A. 2A:17-56 and federal law, tells the employer to withhold the least of three amounts: 10 percent of gross weekly pay, 25 percent of disposable earnings, or the amount by which disposable weekly earnings exceed a set floor. In no event may more than 10 percent of gross salary be withheld, and only one wage execution is satisfied at a time.
The same form says you may object or apply for a reduction at any time by filing a written statement with the Clerk and sending a copy to the creditor or its lawyer, and a hearing will be held within 7 days. It also states that no employer may fire an employee because of a garnishment.
If you have been sued, do not ignore the papers
The time to answer is short and is stated on the summons. The six-year limit and the venue rule are defenses you raise by answering. Read sued by a debt collector.
The Consumer Fraud Act
New Jersey's Consumer Fraud Act lets a person who suffers an ascertainable loss of money or property from an unlawful practice recover threefold damages, and requires the court to award reasonable attorneys' fees, filing fees and costs (N.J.S.A. 56:8-19). Whether a particular collection practice is an "unlawful practice" under the Act depends on the facts, so treat it as a possible additional claim, not a given.
What to do this week
- Find the date of your last payment on the account and compare it to six years.
- Do not sign an acknowledgment or payment plan on an old debt until you know whether the limit has run.
- Keep every letter, especially any that offers to "settle" an old debt.
- If your wages are being garnished, check the math against the 10 percent cap and file a written objection if it is wrong.
The New Jersey page collects the state rules.
Sources: 15 U.S.C. §§ 1692a, 1692c, 1692e, 1692f, 1692i, 1692k; 12 C.F.R. § 1006.26(b); N.J.S.A. 2A:14-1; N.J.S.A. 56:8-19; Tatis v. Allied Interstate, LLC, 882 F.3d 422 (3d Cir. 2018) (opinion); New Jersey Courts, Order and Execution Against Earnings, CN 11471 (rev. July 1, 2022).
Common questions
How long does a creditor have to sue me in New Jersey?
Generally six years after the claim accrues for contract and account actions (N.J.S.A. 2A:14-1). Contracts for the sale of goods are handled under a different section. Bills to shorten the period for consumer debts have been introduced, but none had been enacted as of September 2026.
Can a collector ask me to settle a debt that is too old to sue on?
In Tatis v. Allied Interstate, the Third Circuit held that a letter offering to settle a time-barred debt could mislead the least sophisticated debtor into thinking the debt was legally enforceable, which can violate the FDCPA. The court did not say every settlement offer on an old debt is unlawful; it depends on the letter.
How much of my paycheck can be garnished after a judgment?
Under the New Jersey court's wage execution form, the employer withholds the least of 10 percent of gross weekly pay, 25 percent of disposable earnings, or the amount disposable earnings exceed a set weekly floor, and never more than 10 percent of gross salary. You may object or ask for a reduction at any time, and a hearing is held within 7 days.
Tell us what they did.
One conversation with an attorney, in your language. We tell you which laws the collector or the credit bureau broke, which deadline runs first, and what to save this week. If it is not a case we can take, we say so and tell you where to go.
(718) 484-7510The FDCPA and the FCRA require a company found liable to pay the consumer’s reasonable attorney’s fees and costs. Our fee arrangement is confirmed in a written retainer before we begin. English, Russian and Spanish in-house; an interpreter for any other language.