New Jersey consumers may offer total amounts to insurance companies or other entities in exchange for the flow of revenue that will normally be paid monthly (in exchange, pension contracts). In addition, insurance companies may pay money on behalf of consumers to compensate for personal injuries. In any case, consumers receiving pension payments may be subject to claims for outstanding debts of creditors. Is it a pension? Major Or pension payment Is it subject to foreclosure (foreclosure) by judgment creditors?
Pension funds and pension payments restrict the protection of reimbursers
The New Jersey law (NJSA § 17 B: 24 - 7) states that payment of pensions and pensions is not only exempted from "enforcement, confiscation, detention, quarantine or other legal procedures" but creditors are " Or dismissed that [annuity] Contract. However, there are two major exceptions.
Pension funds and pension payments derived from fraud are not exempt from confiscation
When a New Jersey consumer created a pension I intended to deceive his or her creditors Or engage in other fraud, the creditor can seize the pension or its payment with the permission of the court. If you receive a judgment, you can not create a pension to avoid paying existing creditors. If this is proved, the court may order the principal that was liquidated to pay the obligation, or may permit full amortization of the pension payment for debt repayment. Attempting to deceive creditors may result in criminal proceedings.
A pension of more than $ 500 per month may be partially paid
The law provides a second exception to the general rule that it can not seize a pension. If the annuity payment amount is $ 500.00 per month, the amount exceeding $ 500.00 will be the same as "wage and salary". In addition, if New Jersey consumers receive multiple payments with different contracts, each of which is less than $ 500 per month, if the total exceeds $ 500 in total, the court will decide that the excess payment will be subject to foreclosure by the court There is likely to be. In addition, New Jersey law allows for 10% of total wages and salaries of people to be decorated according to judgment. Let's actually look at this mathematics based on the following example. We assume the following.
1) New Jersey consumers defaulted to a $ 5,000 credit card account.
2) The credit card company appealed to consumers and sent a ruling.
3) Consumers have pensions with a balance of $ 150,000.00.
4) Consumers receive a payment of $ 650.00 per month.
Therefore, consumers can earn a $ 15.00 fee until a judgment is paid. Mathematics:
Payment of $ 650. 00 pension money
- NJSA 17B: 24-7 (a) 500.00 exempted from pursuit to (2)
= 150.00, garnish object
× 10% Maximum garnish ratio
= $ 15.00 decoration amount
Because the New Jersey State Assembly believes creditors should take some form of protection by taking decisions, the pension has received a certain level of exemption from the seizure of creditors. Since they are typically associated with retirees and injured people, we believed that this protection is appropriate, although limited.
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