Debt in New Jersey is a common issue. However, like many areas of the law, it has a statute of limitations. See below to better understand New Jersey laws surrounding debt collection if you have significant debt. Consider contacting a lawyer about debt litigation if you feel you do not owe the money.

What is the statute of limitations?

New Jersey has a statute of limitations for different types of debt. The deadline is six years for a mortgage, credit card, medical, and state tax debt. For auto loans, the deadline is four years. This does not mean debt collectors cannot pursue you for your debt payments. It only means they cannot bring you to court after a certain amount of time. Once the statute of limitations passes, debt collectors cannot garnish your wages. However, your credit report will still note the debt you carry for seven years.

When does the deadline start?

If you do not know when your statute of limitations is up, you can contact the debt collector for a verification letter. The deadline for litigating your debt starts from the date of your last payment. Once you do not make a payment past the statute of limitations, your debt becomes time-barred.

Seek legal help if you have serious debt issues and do not take any action without understanding your rights.