Tag Archives: Debt Collection

How New Jersey Debt-Collection Judgments Work

If you’ve been sued for credit-card debt in New Jersey and you’re trying to decide what to do, you will need to know how New Jersey debt-collection judgments work.

Pay Attention To The Lawsuit Timeline

If you’ve been sued for debt collection in New Jersey, you should pay close attention to the timeline. Look closely at the papers you received – the first papers, the ones that start a lawsuit, are the summons and the complaint. The summons should be on the front. It may look like a mostly pre-printed form that has been filled in here and there. In some kinds of lawsuits, you will see a date somewhere in the middle of that form that is the date your written answer is due. In other kinds of lawsuits, there won’t be a date in the middle of the summons.

Which Part Of The Court Is The Lawsuit In?

The two main kinds of debt-collection lawsuits in New Jersey are those that are filed in Special Civil Part and those that are not. Ways to tell the difference is that in Special Civil Part lawsuits: 1) The plaintiff will be seeking $15,000 or less (it could be a little more with attorney fees added on); 2) The docket number will have “DC” in it; 3) The upper right-hand corner of the complaint will have “Special Civil Part” in the name of the court.

Special Civil Part vs. Law Division

Most credit-card debt-collection lawsuits that are not in Special Civil Part are situated in regular Law Division. You’ll need to look closely at the papers you receive, since the Special Civil Part lawsuits will say “Law Division” on them, but if they also say “Special Civil Part,” that means they’re not in the regular Law Division. Regular Law Division lawsuits seek to collect more than $15,000 and their docket numbers have “L” in them instead of “DC”.

Small Claims Part

Note that yet another category of lawsuit in this area could be small claims lawsuits, which have “SC” in the docket number, but this type isn’t typically used for credit-card debt collection. Small claims lawsuits typically less than $3,000 in dispute, most often involving parties who are not represented by attorneys.

Why It Matters Which Part The Lawsuit Is In

The reason it’s important to distinguish Special Civil Part collection lawsuits from regular Law Division lawsuits is that the procedure for obtaining a judgment against the defendant is a little different for each type of lawsuit.

Service Of Special Civil Part Lawsuits

As mentioned above, the first thing that happens in Special Civil Part lawsuits is that each defendant receives service of the Summons and the Complaint, usually by mail from the courthouse. The documents are sent via both certified mail, return receipt requested and regular mail. If both of these pieces of mail are returned to the court, service was not good. If at least one of them does not get returned, the court deems that as good service.

So if you’re trying to dodge service, it doesn’t do you any good to ignore the certified mail that’s waiting for you at the post office.

What Happens If You Don’t Respond

You’ll get 35 days – until the date listed on the front middle portion of the Summons – to file your written answer to the court along with proper payment of the filing fee and to send a copy to the other side. If you don’t file the answer by the answer date, the Special Civil Part automatically “enters default” against you. All this means is that the court is recognizing that you did not file a timely answer.

How New Jersey Debt-Collection Judgments Work

Then, after the court enters default against you, the other side (the plaintiff) can file a request or a motion to enter judgment against you for the full amount of money that they are seeking to collect.

You might receive a copy of this request or motion or you might not, depending on circumstances. The timing here is almost entirely dependent on the efficiency of the attorney representing the plaintiff. Some attorneys get these papers in to the court on the first possible date and some attorneys let the case lapse for 6 months or more. Most fall somewhere in between. It can help to know the practices of the various attorneys’ offices.

What If Nothing Happens?

If the case lapses for 6 months with no judgment, the court will administratively dismiss the case. That doesn’t mean you win. Administrative dismissal only means the court wants to get the case off its active rolls as quickly as possible. The other side can always file a motion to revive the case.

How New Jersey Debt-Collection Judgments Get Collected

Once the other side gets its judgment, they can start filing motions with the court to allow them to collect on the judgment, usually via wage garnishment or bank levy.

How Law Division Differs

If the case is in regular Law Division, the procedure is similar, but not exactly the same. The main difference is that the other side must file papers with the court asking it to enter default against you, declaring that you did not timely file a written answer.

Then, once they get their entry of default, the rest of the procedure is the same – the other side files papers requesting a judgment against you. And once the judgment is entered, they can start trying to collect.

What To Do When You Get A Lawsuit

Once you receive a lawsuit, you should start paying close attention to the timeline outlined above. Seek attorney help as soon as possible, either to help you file a written answer and continue defending against the lawsuit, or to settle it, or maybe even both. You’ll need to provide an attorney with a full copy of the papers and tell them everything you think you might know about the underlying facts of the lawsuit.

If you’ve been sued in New Jersey and you need help, call (201) 676-0722 to schedule a free telephone consultation with attorney Jennifer Weil, or go to my Setmore page.

Struggling to Make Minimum Credit Card Payments? Explore Your Options

Struggling to make minimum payments on your credit card debt and unable to save any money? You may want to consider bankruptcy as an option for debt relief. If your credit card debt has become overwhelming, debt settlement and bankruptcy are the two main options for financial relief.

While debt settlement may seem like an attractive option, it can often be more expensive than bankruptcy. You will have to pay back at least a portion of your debt, and there’s no protection from debt collection lawsuits.

On the other hand, filing for bankruptcy offers protection from debt collection activities such as lawsuits. With Chapter 7 bankruptcy, you may be able to have your entire credit card debt discharged for the cost of attorney fees and filing fees. If you file for Chapter 13, you’ll pay back a portion of your debt under the protection of bankruptcy from debt collection activity.

It’s important to weigh your options and consider the financial and legal implications before making a decision on debt relief. Contact a bankruptcy attorney to discuss your options and determine if bankruptcy is the right choice for you.

Do you have questions about whether you should file for bankruptcy? Schedule a phone consultation with attorney Jennifer Weil on the Setmore page.

How to get your creditors to stop harrassing you

Stop Sign
Image by ladybeames via Flickr

One way to get your creditors to stop harassing you is by filing for bankruptcy. But how does filing for bankruptcy stop creditor calls and letters? Through something called the “automatic stay”.

The automatic stay in bankruptcy can be a powerful benefit for debtors who feel that they are being hounded by creditor phone calls and letters. It can prevent further harassment from debt collectors.

After a bankruptcy is filed, creditors must stop attempting to collect on debts as a result of the automatic stay, which takes effect just after filing. Practically speaking, you should wait until creditors receive notice of the filing before they know to stop contacting you.

Or, your lawyer may send out letters of representation to your creditors, which can put a stop to the creditor calls and letters for a while prior to your bankruptcy filing. For example, if the credit card companies are really annoying you, have a talk with your lawyer and see whether letters of representation can be arranged.

Exactly what does the automatic stay protect the debtor from? Debt collection calls, wage garnishment, lawsuits, foreclosure sales, and repossessions.

What types of actions are NOT stayed? Actions regarding family support, such as child support or alimony; criminal prosecutions; and tax assessments or audits.

How long does the automatic stay last? Until the debtor’s bankruptcy discharge comes through or until a creditor asks a judge and successfully gets the automatic stay lifted.

What happens when a creditor violates the automatic stay? Then that creditor may be subject to civil penalties, such as the payment of damages.

If you have a question about bankruptcy, feel free to contact the Hoboken Bankruptcy Attorney at 201-676-0722 or at jweil@jenlawyer.com.