Effective July 1, 2022, the New Jersey Supreme Court has increased the jurisdictional limits in civil courts. The New Jersey Special Civil Part jurisdictional limit has increased from $15,000 to $20,000. The jurisdictional limit for New Jersey Small Claims Court has also increased from $3,000 to $5,000.
This increase will prove extremely beneficial to Community…
Understanding what can occur during a collection action can be vital in determining which accounts to pursue. One common occurrence is that a debtor files for bankruptcy.
There are two (2) types of consumer bankruptcy filings that may likely be encountered during a collection action. The first is a Chapter 7 Liquidation, meaning that the debtor is liquidating his/her assets. The second is a Chapter 13 Reorganization, in which the debtor proposes to pay creditors some of what creditors are owed over time (3-5 years.); the debtor will file a Chapter 13 Plan that sets forth how the debtor plans to do it.
The purpose of filing a bankruptcy is for the debtor to receive a discharge from personal liability for pre-petition debt (debt incurred prior to the date of the bankruptcy filing). The bankruptcy filing provides a stay of any collection actions against property of the debtor’s estate, including wage execution and bank levies.…
Continue Reading Bankruptcy Considerations in Collection Actions
The New Jersey Uniform Commercial Code (the “UCC”) was amended, effective May 11, 2015, imposing new requirements on the filing of a financing statement to perfect a security interest in collateral within the scope of Article 9 of the UCC. The amendment provides that in order to be sufficient, a financing statement must state that…
When considering collecting a judgment obtained in another state against a New Jersey state resident or a corporation doing business in New Jersey, it is relatively easy to obtain a docketed New Jersey judgment by virtue of N.J.S.A. 2A:49A-25, et. (the “Act”). The process only takes three to four weeks, but it does involve notice…
I am often asked by clients whether prejudgment interest can be obtained from debtors on unpaid claims. Prejudgment interest is usually awarded by the courts in New Jersey only when a written contract exists between the creditor and the debtor which includes a provision for the assessment of interest if payment is not received by the creditor in a timely manner.
Continue Reading Collecting Prejudgment Interest on Debts
Creditors should keep certain things in mind with respect to collection of past-due obligations.
Continue Reading Basic Considerations For Collecting Money In New Jersey
