New JerseyState Collection Laws

STATE INTEREST RATES AND USURY LIMITS:

• Maximum General Rate: 6% or 16% when there is a written contract specifying a rate of interest

• Contract Rate: For loans in the amount of $500,000 or more, the interest rate stated in the contract must not reduce the amount outstanding to less than $50,000. N.J. Admin. Code tit. 3, § 1-1.1 (West, WESTLAW through March 18, 2002; 34 N.J. Reg. No. 6)

• Judgment Rate: 8%

• Corporate Rate: Any agreed upon rate.

 

LEGAL AGE:

• Age of Majority: 18

• Any minor older than 15 may acquire ownership under any contract for annuities or for insurance. N.J. Stat. Ann. § 17B:24-2 (West, WESTLAW through L.2001, c.457)

 

DEBT RESPONSIBILITY: DOCTRINE OF NECESSARIES

• A pregnant woman who is a minor may have the same legal capacity as a person of legal age and there is no parental consent to a hospital needed in order for her to give birth to her child.

• Both spouses are liable for the necessary expenses incurred by either spouse and both partners can decide how they want to pay their debts.

 

STATUTE OF LIMITATIONS FOR CIVIL ACTIONS:

• Every Action at Law: 6 years after the cause of any such action shall have accrued. N.J. Stat. Ann. § 2A:14-2(a) – (b) (West, WESTLAW through 2004 First Annual Session of 211th Leg.)

• Judgments: 20 years

 

This information is not to be construed as legal advice. Legal advice must be tailored to the specific circumstances of each case. Although we attempt to provide up-to-date information, laws and regulations often change. We make no claims, promises, or guarantees about the accuracy or completeness of this document. For legal advice please contact an attorney. 

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