TOMS RIVER, NJ – New Jersey residents facing default judgments may have legal options to reopen their cases and address outstanding debts through proper court procedures. Ocean County debt negotiations lawyer Daniel Straffi Jr. of Straffi & Straffi Attorneys at Law (https://www.straffilaw.com/vacating-default-judgments-getting-a-second-chance-to-settle-your-debt/) explains the process for vacating default judgments and the legal grounds available under New Jersey Court Rule 4:50-1.
According to Ocean County debt negotiations lawyer Daniel Straffi Jr., a default judgment occurs when a creditor sues for unpaid debt and the defendant fails to respond within New Jersey’s required 35-day timeframe. Once entered, these judgments allow creditors to garnish wages, levy bank accounts, and place liens on real estate. “Even first-time defendants can lose up to 25% of their gross earnings through wage garnishment if their income exceeds 250% of the federal poverty level,” Straffi explains. “Many people discover their bank accounts have been frozen only when their debit card is declined.”
Ocean County debt negotiations lawyer Daniel Straffi Jr. notes that New Jersey law provides specific grounds for vacating default judgments under Court Rule 4:50-1. The most commonly used grounds include excusable neglect and void judgment due to improper service. To succeed under the excusable neglect standard, defendants must demonstrate both a reasonable explanation for failing to respond and a meritorious defense to the underlying lawsuit.
Straffi emphasizes that timing is critical when seeking to vacate a default judgment. “For motions based on mistake or excusable neglect, defendants must file within one year of the judgment being entered,” he notes. “This one-year period is a hard deadline, and courts favor defendants who act promptly after discovering the judgment.”
The debt negotiations lawyer points out that valid reasons for excusable neglect include service at an incorrect address, hospitalization or serious medical issues, being out of state during the response period, or failure by the creditor to properly notify the defendant of the default. Simply stating “I forgot” or “I was busy” typically does not constitute excusable neglect under New Jersey law.
“Defendants must also demonstrate a meritorious defense to the underlying debt,” advises Straffi. “Common defenses include mistaken identity, incorrect debt amounts, expired statute of limitations, or lack of proper documentation proving the debt is owed.” The statute of limitations for most debts in New Jersey is six years from the date of last payment.
The process requires filing formal motion papers with the court, including a Notice of Motion, Certification detailing the facts, a Brief arguing the legal basis, and an Answer to the original complaint. In Ocean County, these documents are filed with the Superior Court in Toms River. Court fees typically include approximately $25 for Special Civil Part cases, plus the fee for filing the Answer.
For homeowners in Ocean County, default judgments create particular concern because judgments docketed in the Law Division automatically create liens on New Jersey real estate. “These liens are filed with the Ocean County Clerk in Toms River and remain attached to the property for 20 years,” Straffi explains. “The lien must be satisfied before the homeowner can sell or refinance.”
Bankruptcy can provide additional protection for those facing default judgments. The automatic stay that takes effect when bankruptcy is filed immediately stops wage garnishments and bank levies. Most unsecured debts underlying collection judgments can be discharged in bankruptcy, and the timing of bankruptcy filing can prevent judgment liens from attaching to real estate.
“Successfully vacating a default judgment puts defendants back in the driver’s seat for negotiating settlements,” notes the Ocean County attorney. “Creditors often become more willing to settle for reduced amounts once the easy path to collection is removed.”
For New Jersey residents dealing with default judgments or facing collection lawsuits, early legal intervention can preserve important rights and prevent long-term financial consequences. Those seeking guidance on vacating default judgments may benefit from consulting with experienced legal counsel familiar with New Jersey court procedures.
About Straffi & Straffi Attorneys at Law:
Straffi & Straffi Attorneys at Law is a New Jersey law firm focused on debt negotiations, bankruptcy, and consumer protection. Led by attorney Daniel Straffi Jr., the firm represents individuals and businesses throughout Ocean County and New Jersey. For consultations, call (732) 341-3800.
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Company Name: Straffi & Straffi Attorneys at Law
Contact Person: Daniel Straffi, Jr.
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Phone: (732) 341-3800
Address:670 Commons Way
City: Toms River
State: New Jersey 08755
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Website: https://www.straffilaw.com/