Legal Question in Credit and Debt Law in New Jersey

Wage garnishment

A couple of years ago I opened a credit card account through a company, after being let go of my job the credit card was my only means of money. Before I knew it I was $5000.00 in debt to this company, not being able to meet the monthly payments I defaulted on the debt. I recently received a letter from a law firm stating that they were taking me to court to receive payment. I contacted an agency to speak on my behalf and call the law firm to make someking of arrangement. The deal that was offered to me by the law firm was in the range of $600.00 a month, far more than i can afford. The agency then told me to let the law firm garnish my wages because by NJ law they could only take 10% of my earnings. Is this correct? Is this a smart thing to do? I'm definitely willing to come to some sort of arrangement with the law firm but the arrangement should be reasonable. If I were to pay them $600.00 a month I wouldn't be able to survive. Could someone please offer me some advice on my situation, I'm confused in the matter.


Asked on 10/29/04, 1:36 pm

1 Answer from Attorneys
Alan Albin Alan S. Albin, Attorney at Law

Re: Wage garnishment

The first thing to come to grips with is that you are responsible to repay debts that you incur. You do not dispute that you actually borrowed the money and defaulted on the debt. Therefore, assuming it is not your intention to file bankruptcy over this, ultimately you will need to repay the debt to get out from under it.

Since you know that you cannot afford to pay the $600/month payment plan you have been offered, then it would be pointless to agree to that offer, because you would end up defaulting on that agreement as well.

Whatever it is that you owe, if you cannot negotiate it to a lower amount, you eventually will have to pay. The quicker you pay it off, the quicker you will be beyond this issue.

So, based on your question, I would advise you to get a second job and/or work overtime, cut expenses to the bone, and use all available extra funds to pay off the undisputed amount of your debt as soon as possible.

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Answered on 10/29/04, 7:13 pm


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