Debt Defense – New Jersey Procedure

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    How Consumer Debt Cases Move Through the New Jersey Court System

    If you’ve been sued for a credit card, personal loan, medical bill, or private student loan in New Jersey, your case will move through a clearly defined court process.

    Understanding the steps and deadlines can help you protect your rights, avoid default, and possibly defeat the claim.

    1. New Jersey Court Structure for Debt Cases

    Most consumer debt lawsuits in NJ are filed in:

    • Special Civil Part of the Superior Court – Law Division

      • Handles most collection cases up to $20,000

      • Small Claims Section: For cases up to $5,000 (excluding interest and costs)

      • Regular Special Civil: $5,001–$20,000

      • Simpler procedures than higher courts

    • Superior Court – Law Division, Civil Part

      • Handles civil claims over $20,000

      • Full discovery, jury trials allowed

    2. How a Debt Lawsuit Begins in NJ

    A. Filing the Complaint

    • The creditor files a Complaint stating:

      • The amount owed

      • The legal basis for the claim

      • Copies of relevant contracts or account statements (not always filed initially)

    B. Service of Process

    • Must be served with:

      • The Complaint

      • The Summons (states the time you have to respond)

    • Service can be made by certified/regular mail or personal service.

    • If certified mail is unclaimed but regular mail isn’t returned, service is considered complete.

    3. Time to Respond

    • You have 35 days from the date you are served to file a written Answer with the court and send a copy to the creditor’s attorney.

    • If you do not respond:

      • The creditor can request entry of default

      • They can then move for a default judgment

    4. Discovery Phase

    • Special Civil Part:

      • Limited discovery (generally 90 days)

      • Written interrogatories limited to 5 questions in small claims; up to 10 in regular Special Civil

    • Civil Part:

      • Full discovery (typically 150–300 days depending on case track)

      • Interrogatories, document requests, depositions allowed

    5. Motions

    Either side may file:

    • Motion to Dismiss — If the complaint fails to state a valid claim

    • Motion for Summary Judgment — Ask the court to decide without trial because no material facts are in dispute

    • Motion to Compel — To force compliance with discovery requests

    6. Settlement Conferences & Mediation

    • Many NJ courts schedule settlement conferences early in the process

    • Some cases go to court-annexed mediation before trial

    7. Trial

    • Special Civil Part: Bench trial (judge only), usually short and straightforward

    • Civil Part: Bench or jury trial, following formal NJ Rules of Evidence and Civil Procedure

    The creditor must prove:

    1. They own the debt (especially if a debt buyer)

    2. You entered into a contract or account agreement

    3. The amount claimed is correct and supported by evidence

    8. Judgment

    If the creditor wins, the judgment includes:

    • Principal balance

    • Interest

    • Court costs

    • Attorney’s fees (if allowed by contract or statute)

    A NJ judgment is valid for 20 years and can be renewed.

    9. Post-Judgment Collection in New Jersey

    A judgment creditor can:

    • Garnish wages — Up to 10% of gross wages if earning over $217.50/week (less if lower income)

    • Levy bank accounts

    • Place liens on real property

    Certain funds are exempt, including Social Security, most public benefits, and some retirement accounts.

    10. Appeals

    • You generally have 45 days from the date of final judgment to file an appeal with the NJ Appellate Division.

    • For Special Civil Part small claims, you may request a new trial in the Law Division.

    11. Common Defenses and Violations

    • Statute of Limitations — In NJ, most written contracts have a 6-year limit from default or last payment.

    • Lack of Standing — Debt buyer cannot prove ownership.

    • Improper Service — Service not made in accordance with NJ court rules.

    • FCRA / FDCPA Violations — False credit reporting or abusive collection practices.

    Key Takeaways

    • NJ’s 35-day response deadline is longer than many states — but ignoring the case will still result in a quick default.

    • Debt buyers often lack admissible evidence — demand proof.

    • Even if the debt is valid, negotiation or settlement may save you significant money.

    • NJ’s post-judgment rules allow garnishment and levies, so defending the lawsuit early is critical.

    📞 Facing a debt lawsuit in New Jersey?
    We defend consumers statewide against collection lawsuits, protect wages and bank accounts from improper levies, and hold debt collectors accountable for violations.
    Call 855-978-6564!