New Jersey debt statute of limitations

New Jersey limitation periods by type of debt

New Jersey applies a 6-year period to contractual claims and accounts, express or implied.

What the New Jersey statute says

“or for recovery upon a contractual claim or liability, express or implied, not under seal, or upon an account other than one which concerns the trade or merchandise between merchant and merchant, their factors, agents and servants, shall be commenced within six years next after the cause of any such action shall have accrued.”
N.J. Stat. Ann. § 2A:14-1(a)

“or for recovery upon a contractual claim or liability, express or implied, not under seal, or upon an account other than one which concerns the trade or merchandise between merchant and merchant, their factors, agents and servants, shall be commenced within six years next after the cause of any such action shall have accrued.”
N.J. Stat. Ann. § 2A:14-1(a)

“a. Notwithstanding any provision of law or regulation to the contrary, except as otherwise provided in subsection c. of this section, a medical creditor or medical debt collector shall not engage in any collection actions until 120 days after the first bill for a medical debt has been sent and the creditor or debt collector has offered the patient who owes the medical debt a reasonable payment plan.”
N.J. Stat. Ann. § 56:11-59(a) (Louisa Carman Medical Debt Relief Act)

Does paying restart the clock in New Jersey?

An acknowledgment or promise only counts if it is in a signed writing (N.J. Stat. § 2A:14-24).

“In actions at law grounded on any simple contract, no acknowledgment or promise by words only shall be deemed sufficient evidence of a new or continuing contract, so as to take any case out of the operation of this chapter, or to deprive any person of the benefit thereof, unless such acknowledgment or promise shall be made or continued by or in some writing to be signed by the party chargeable thereby.”
N.J. Stat. Ann. § 2A:14-24

New Jersey’s own debt collection law

New Jersey requires anyone operating a collection agency or collecting accounts for others in the state to have a bond on file with the Secretary of State.

“No person shall conduct a collection agency, collection bureau or collection office in this state, or engage therein in the business of collecting or receiving payment for others of any account, bill or other indebtedness,”
N.J. Stat. Ann. § 45:18-1

If a creditor wins a judgment in New Jersey

The statute of limitations is a defense to the lawsuit. If the creditor sues within the deadline and wins — or wins by default because nobody answered — different New Jersey rules take over.

How long a judgment lasts

In New Jersey, a judgment of a state court of record may be revived, or an action brought on it, within 20 years after its date, but not afterward.

“A judgment in any court of record in this state may be revived by proper proceedings or an action at law may be commenced thereon within 20 years next after the date thereof, but not thereafter.”
N.J. Stat. Ann. § 2A:14-5

Wage garnishment

New Jersey caps a wage execution at 10% of the debtor's wages and similar income, unless the debtor's income exceeds 250% of the poverty level for the family size, in which case the court may order a larger percentage (federal limits still apply).

“In no case shall the amount specified in an execution issued out of any court against the wages, debts, earnings, salary, income from trust funds or profits due and owing, or which may thereafter become due and owing to a judgment debtor, exceed 10%, unless the income of such debtor shall exceed 250 % of the poverty level for an individual taking into account the size of the individual's family”
N.J. Stat. Ann. § 2A:17-56(a)

Small claims court

According to the New Jersey Courts' official site, small claims cases are lawsuits for $5,000 or less (larger cases up to $20,000 go to the Special Civil Part).

“Small claims are lawsuits for $5,000 or less. Renters can file for a return of a security deposit of $5,000 or less in small claims court.”
New Jersey Courts, Small Claims Court self-help page (njcourts.gov)

What to do next

1. Find the date of your last payment or account activity — that is usually when the clock started.
2. If a collector contacted you in the last 30 days, dispute in writing first: the validation letter generator asks the collector to verify the debt without admitting it.
3. Do not pay or sign anything on an old debt until you know how New Jersey treats a payment (above).
4. If you are sued, respond by the deadline on the summons and raise the statute of limitations as a defense.

Common questions

How long can a debt collector sue me in New Jersey?

6 years for credit-card debt and 6 years on a written contract, under N.J. Stat. § 2A:14-1. The period usually runs from your last payment or the date of default.

Does a payment restart the clock in New Jersey?

An acknowledgment or promise only counts if it is in a signed writing (N.J. Stat. § 2A:14-24).

Does New Jersey have its own debt collection law?

New Jersey requires anyone operating a collection agency or collecting accounts for others in the state to have a bond on file with the Secretary of State. (N.J. Stat. Ann. § 45:18-1).

How long does a court judgment last in New Jersey?

In New Jersey, a judgment of a state court of record may be revived, or an action brought on it, within 20 years after its date, but not afterward. (N.J. Stat. Ann. § 2A:14-5).

How much of my pay can be garnished in New Jersey?

New Jersey caps a wage execution at 10% of the debtor's wages and similar income, unless the debtor's income exceeds 250% of the poverty level for the family size, in which case the court may order a larger percentage (federal limits still apply). (N.J. Stat. Ann. § 2A:17-56(a)).

What if I am sued on an old debt in New Jersey?

Respond by the deadline on the summons. An expired limitations period is a defense you generally have to raise yourself; a court that hears nothing from you can enter a default judgment.