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For most types of debts in New Jersey, the statute of limitations is six years. However, the statute of limitations is 20 years on judgments, and there are other specific types of debts that may have a different statute of limitations.
One way to deal with a judgment is by getting the creditor to issue a warrant of satisfaction stating that the judgment is no longer owed. This will only be issued if the judgment is paid in full or the parties come to another arrangement through settlement.
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).
Jointly owned accounts Thus, a bank levy may only freeze half the funds if the co-owner is not the debtor. New Jersey further protects the non-debtor co-owner from having his or her contributions levied if that person could prove his or her net contributions to the account (e.g. pay stubs). N.J. Ann. Stat.
The creditor can often place a lien on your property, such as a house or car. The lien must usually be paid off before you can sell the property. Seize assets. Sometimes, a creditor can get a court order to seize other assets or personal property you own, such as a vehicle or real estate, to satisfy the debt.
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.
A judgment from another state can be enforced by docketing it with the Clerk of the Superior Court in Trenton. It will then be a lien on any real estate owned by the debtor in New Jersey and other collection efforts must be made through the Sheriff's Office in the county where the debtor has assets.
In New Jersey all plans, including IRAs, are generally exempt from creditor claims, until the money is distributed. Under federal law, many retirement accounts are generally protected except for Traditional IRAs and Roth IRAs.