COLLECTION LAWS – NEW JERSEY (NJ)
(1) Pre-Judgment Interest Rate: The pre-judgment interest rate in New Jersey is determined by the court and is subject to the provisions of the New Jersey Court Rule 4:42-11. This rule allows the court to award prejudgment interest at a rate it deems reasonable. Pursuant to R. 4:42-11(b), interest rates in tort actions after January 1, 1988 are the same
as the post-judgment interest rates set forth under New Jersey Court Rule 4:42-11(a).
(2) Post-Judgment Interest Rate: Post-judgment interest rates are governed by New Jersey Court Rule 4:42-11(a) and vary from year to year, in accordance with a complex formula specified in the rule. These rates go into effect on January 1 of each year. In particular, Rule 4:42-11(a)(ii) provides “the annual rate of [post judgment] interest shall equal the average rate of return, to the nearest whole or one-half percent, for the corresponding preceding fiscal years terminating on June 30, of the State of New Jersey Cash Management Fund (State accounts) as reported by the Division of Investment in the Department of the Treasury.” Effective September 1, 1996, if the judgment exceeds the monetary limit of the Special Civil Part (currently $20,000), 2.0% should be added to the aforementioned interest rate, pursuant to R. 4:42-11(a)(iii).
(3) Statute of Limitations for Written Contract: The statute of limitations for a written contract in New Jersey is generally six years. According to N.J. Stat. § 2A:14-1, an action to enforce a written contract must be brought within six years from the date the cause of action accrued.
(4) Statute of Limitations for Oral Contract: For an oral contract, the statute of limitations in New Jersey is also six years. N.J. Stat. § 2A:14-1 applies to both written and oral contracts.
(5) Statute of Limitations for Open Account: The statute of limitations for an open account, which includes debts for goods sold and delivered, is also six years in New Jersey. This is governed by N.J. Stat. § 2A:14-1.
(6) Statute of Limitations for Contract for Sale of Goods: In New Jersey, the statute of limitations for a contract for the sale of goods is four years. This is based on the Uniform Commercial Code (UCC) as adopted in New Jersey, specifically N.J. Stat. § 12A:2-725.
(7) Statute of Limitations for Promissory Note: The statute of limitations for a promissory note in New Jersey is six years. This is governed by N.J. Stat. § 2A:14-1.
(8) Statute of Limitations for Enforcement of Domestic Judgment: The statute of limitations for the enforcement of a domestic judgment in New Jersey is 20 years. Pursuant to N.J. Stat. § 2A:14-5, a judgment may be enforced within 20 years from the date it was entered.
(9) Statute of Limitations for Enforcement of Foreign Judgment: In New Jersey, a foreign judgment may be enforced within 20 years from the date of its entry or the date it became enforceable in the jurisdiction where it was originally obtained. This is governed by the Uniform Enforcement of Foreign Judgments Act, found in N.J. Stat. § 2A:49A-25.
(10) Garnishment Exemptions: New Jersey law provides certain exemptions from garnishment, protecting certain types of income or property from being seized to satisfy a debt. These exemptions include, but are not limited to, Social Security benefits, workers’ compensation benefits, certain retirement funds, and certain public assistance benefits. The specific exemptions are outlined in N.J. Stat. § 2A:17-19.
Disclaimer: Please note that the presented content is an outline of legal regulations, serving as a general overview rather than an exhaustive representation of comprehensive statutes. It is crucial to recognize that this outline does not constitute “legal advice.” Moreover, it is important to acknowledge that subsequent changes to the listed statutes may occur subsequent to this publication. It is recommended to consult an attorney in the jurisdiction to confirm the information is up-to-date and accurate.