Wage Exemptions -- State System
New Jersey Law Wage Garnishment Limits
New Jersey garnishment law protects 90% of wages if under 250% of poverty.
New Jersey scored an "D" in the the NCLC grading of state wage garnishment protections, because it preserves more of a worker’s wages than the minimum required by federal law.
Federal Non-Bankruptcy Law
(available only if using State System)
Federal "non-bankruptcy" law also offers exemption protection for wages.
Wage Garnishment — Federal System § 522 (no exemption)
Can New Jersey debtors use the Federal Bankruptcy exemptions instead of New Jersey exemptions?
Yes. Federal exemptions are available.
The Federal Bankruptcy Exemptions under 11 U.S.C. § 522(d) are available to you if
- you haven't lived in any state longer than 180 days for a while,
- or
- if your state allows the Federal exemptions as a choice.
New Jersey collections law and federal labor law (a federal non-bankruptcy exemption) set limits on what wages can be garnished.
The Wage Garnishment exemption in bankruptcy is for "earned by unpaid wages"... that is wages you'd earned as of the date you filed, but hadn't been paid for yet.
In a few states, the exemption protects earlier wages deposited in a bank account.
As the NCLC pointed out in a 2019 survey of state wage garnishment laws, some states fail to guarantee that a debtor can earn a poverty wage free of garnishment.
See also on LegalConsumer.com
From Elsewhere on the web:
- Wage Garnishment in New Jersey (UpSolve.org): UpSolve features state specific articles on wage garnishment in each state.