Bill
Bill > A5617
summary
Introduced
05/05/2025
05/05/2025
In Committee
05/05/2025
05/05/2025
Crossed Over
Passed
Dead
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill would eliminate court filing fees for individuals who are sued to collect consumer debt. The bill provides that no such individual could be charged a court fee to file an appearance, an answer to a complaint, a counterclaim, a cross-claim, or a third-party complaint in the Special Civil Part of the Superior Court, Law Division, including a small claim, or in the Civil Part of the Superior Court, Law Division. The bill defines "consumer debt" as debt incurred by an individual primarily for a personal, family, or household purpose, and includes consumer credit and medical debt as those terms are defined under current law. According to reports, in the majority of lawsuits to collect a consumer debt, the defendant does not respond or try to defend against the lawsuit. As a result, courts often enter default judgments against these defendants, leading to additional fees and interest as well as garnishment of wages and bank accounts. Consumer debt claims are often for relatively small sums, in amounts less than $10,000. This bill is based on Benchmark 5 in the 2024 "Consumer Debt Litigation Index" by the National Center for Access to Justice.
AI Summary
This bill eliminates court filing fees for individuals who are defendants in consumer debt lawsuits in New Jersey's Superior Court. Specifically, the legislation ensures that no individual can be charged a fee to file legal documents such as an appearance, answer to a complaint, counterclaim, cross-claim, or third-party complaint in either the Special Civil Part or Civil Part of the court, including small claims. The bill defines "consumer debt" broadly as debt incurred primarily for personal, family, or household purposes, which includes consumer credit and medical debt. The motivation behind this legislation appears to be addressing the current situation where most consumer debt defendants do not respond to lawsuits, often resulting in default judgments that can lead to wage garnishment and additional fees. By removing court filing fees, the bill aims to lower barriers that prevent individuals from defending themselves in consumer debt cases, particularly for lawsuits involving relatively small amounts (typically less than $10,000). The bill is based on a recommendation from the 2024 "Consumer Debt Litigation Index" and will go into effect 90 days after its enactment.
Committee Categories
Business and Industry
Sponsors (4)
Last Action
Introduced, Referred to Assembly Consumer Affairs Committee (on 05/05/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/A5617 |
| BillText | https://pub.njleg.gov/Bills/2024/A6000/5617_I1.HTM |
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