Attorney at Law
Acting Administrative Director of the Courts, Glenn A. Grant, J.A.D. issued a Notice to the Bar dated August 20, 2024 setting forth New Jersey post-judgment interest rates for 2025.
The Interest rate on judgments not more than the $20,000 monetary limit of the Special Civil Part at time of entry will be 5.50% effective January 1, 2025.
The Interest rate on judgments greater than the $20,000 monetary limit of the Special Civil Part at time of entry will be 7.50% effective January 1, 2025.
Mr. Eichenbaum was appointed to serve on the New Jersey Supreme Court Special Civil Part Practice Committee for its 2020-2022 term. The Committee addresses issues affecting policy and procedure in the Special Civil Part.
Mr. Eichenbaum served as Moderator and a speaker in a May 2020 Webinar “Keys to Practicing in Special Civil Part.” The Special Civil Part is a section of the Superior Court of New Jersey Law Division. It has jurisdiction over claims up to $15,000 and landlord-tenant matters.
The webinar was presented for the New Jersey Institute for Continuing Legal Education. Topics discussed by Mr. Eichenbaum included Special Civil Part jurisdictional limits, types of matters heard, service of process, entry of default and judgment, discovery, and motion requirements.
New Jersey law permits judgment creditors to levy upon a judgment debtor’s personal property or debts due to the judgment debtor from third parties.[1] Typically, this involves a levy upon a bank account (although levies can be made upon commissions due, rents due, etc.).
“A levy pursuant to a writ of execution is the court officer’s method of taking control of property.”[2]
A writ of execution setting forth the name and location of the bank account to be levied upon is filed with the court. After the writ is processed by the court, it is issued to a court officer or sheriff, who then serves the execution upon the judgment debtor’s bank.
If a successful levy is made, the court officer or sheriff sends an affidavit of levy to the judgment creditor’s attorney setting forth the date and amount of the monies attached. The judgment debtor’s account is now “frozen” up to the amount levied upon; these funds are unavailable to the judgment debtor.
On the date the levy is made, the court officer levying on the account must mail a notice to the last known address of the person (or business entity) whose account was levied upon. This notice must state that a levy was made, describe exemptions from levy and how such exemptions may be claimed.[3]
After receiving a copy of the court officer’s affidavit of levy, a motion for a “turnover” order must be filed. The turnover motion seeks a court order directing the bank (or other third party) to turn over the monies levied upon to the court officer or sheriff. As one judge put it, “[t]he turnover proceeding is the mechanism by which courts … direct a bank holding the debtor’s funds to pay those funds over to creditors rather than to the debtor.”[4]
New Jersey Court Rules provide, however, that “no turnover of funds…may be made, in any case, until 20 days after the date of the levy and the court has received a copy of the properly completed notice to debtor.” [5]
Entry of the turnover order creates an obligation for the bank to turn the money over the levying creditor.
Once the court officer receives a filed copy of the court order, he or she recovers the monies from the bank (or other third party) and remits the same to the creditor or creditor’s attorney.
[1] N.J.S.A. §2A:17-63. This statute provides:
Order to garnishee to pay debt After a levy upon a debt due or accruing to the judgment debtor from a third person, herein called the garnishee, the court may upon notice to the garnishee and the judgment debtor, and if the garnishee admits the debt, direct the debt, to an amount not exceeding the sum sufficient to satisfy the execution, to be paid to the officer holding the execution or to the receiver appointed by the court, either in 1 payment or in installments as the court may deem just.
[2] Sylvan Equip. v. Washington & Son, Inc. 292 N.J. Super. 568, 573 (N.J. Super., 1995)
[3] NJ Court Rule 4:59-1(h)
[4] Judge Donald Steckroth in In re Flores, No. 10-34546, United States Bankruptcy Court (D.N.J. Jan. 6, 2011) citing N.J.S.A. §2A:17-63
[5] NJ Court Rule 4:59-1(h)
A wage execution is an order issued by a judge directing an employer to deduct money from a judgment-debtor’s wages.
N.J.S.A. § 2A:17-50 allows execution (garnishment) of the “wages, debts, earnings, salary, income from trust funds, or profits of the judgment debtor.” The amount to be deducted on a wage execution may not exceed 10% of the defendant’s gross salary. Monies may not be withheld if disposable weekly earnings are less than $217.50 per week or $435.00 every 2 weeks.
The proceedings are initiated by sending the judgment debtor a Notice of Application for wage execution by certified and ordinary mail. The Notice advises the defendant that the judgment creditor is seeking a wage execution order; that the defendant must file a written objection within ten (10) days; that if the defendant objects within ten days, the matter will be scheduled for hearing; and that if no objection is filed, no further notice will be given and an Order will be signed by the Judge as a matter of course.
Once the wage execution is served upon the defendant’s place of business by the court officer or sheriff it becomes a lien and continuing levy upon the defendant’s wages, earnings, salary or profits due. Unlike some other jurisdictions, there is no need to “renew” the wage execution; it remains in effect until it is fully satisfied or the defendant leaves the place of business. Remittances are made by court officers and sheriffs on a regular basis.
Only one wage execution may be satisfied at a time, and such executions are satisfied in the order of priority in which they are served.
Under New Jersey law, the judgment debtor can request–and is entitled to–a hearing to challenge the wage execution even after it is served.
As compensation for an employer’s administrative expenses, the employer is entitled to retain 5% of the funds deducted under a wage execution. N.J.S.A. §2A:17-53.
If the employer or other entity required to make payment fails or refuses to make the deductions/payments required by the execution, the employer may be sued by the judgment creditor. N.J.S.A.§2A:17-54
Richard S. Eichenbaum, P.C. 