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Judgment liens have to be satisfied before the property can be sold or refinanced. Second, judgment creditors can levy upon your personal property or bank accounts. Third, your wages can be garnished. Garnishment is when the Court orders your employer to pay a portion of your pay directly to the judgment creditor.
Under New Jersey law, each debtor is entitled to an exemption protecting $1,000 of personal property from collection to satisfy a judgment. In addition, welfare, social security and unemployment benefits are protected from judgment levy.
And some states also allow judgment liens on the debtor's personal property -- things like jewelry, art, antiques, and other valuables. In New Jersey, a judgment lien can be attached to real estate only (not personal property).
This motion is filed by a debtor to avoid certain liens on property. The motion may be filed on negative notice or it may be set for a hearing, and it must be served upon all affected parties. There is no filing fee unless it is filed as a multi-part motion with a Motion to Reopen Case.
Debtors in New Jersey can protect certain personal property during Chapter 7 bankruptcy, such as clothing and some of their household goods and furnishings. There are state exemptions for certain disability benefits and miscellaneous exemptions that can protect assets like pensions, stocks, and life insurance proceeds.