Suing to Collect Accounts Receivable in New Jersey Special Civil Part Court

   When all else fails, you may consider filing a lawsuit to collect on delinquent accounts. But you may not be comfortable taking this course of action. You may fear that it will be too costly, or that legal fees will end up being more than the amount recovered. However, this is not always the case. Understanding how the Courts operate will help explain why.

  The New Jersey Civil Court system, where money judgments are entered, is separated into three parts, Superior Court, the Special Civil Part, and Small Claims. In Superior Court the amount that can be sued for is unlimited and cases go through the discovery process and take time to get to trial. The Special Civil Part is designed to move cases through more quickly. In the Special Civil Part the limit is fifteen thousand dollars. Small Claims handles cases in which the demand is not more than three thousand dollars.


   Cases filed in the Special Civil Part can come to trial within three months of being filed and trials rarely last more than a few hours. Filing fees are low. Discovery can and should be limited to interrogatories and document demands to avoid the cost of depositions. Most cases are resolved before trial through mandatory mediation on the morning of trial, and often with the Judge’s intervention. When a case is settled the parties file an enforceable settlement agreement, sometimes including a schedule of payments.  


  For cases filed in Special Civil Part, entities such as corporations or limited liability companies must be represented by an attorney under New Jersey law, so retaining an attorney cannot be avoided. Attorneys can be retained either on a contingency, fixed fee, or hourly basis. It’s also possible to combine these with the attorney taking a portion of his or her fee up front, and agreeing to the balance if there is a recovery.  


   This knowledge allows you to consider pursuing bad debts and engaging the legal system to your advantage.   It may also be necessary to do so from an accounting position, as a bad debt sometimes cannot be simply written off without an attempt to collect it. If your business has bad debts or monies owed to it, consider contacting this office, or an attorney of your choice. It may be very worthwhile.

Write a comment

Comments: 9
  • #1

    Woodrow Kriner (Wednesday, 01 February 2017 12:09)

    Have you ever considered about adding a little bit more than just your articles? I mean, what you say is fundamental and everything. However think of if you added some great images or video clips to give your posts more, "pop"! Your content is excellent but with images and video clips, this website could certainly be one of the most beneficial in its niche. Good blog!

  • #2

    Spencer Mclane (Friday, 03 February 2017 07:58)

    For the reason that the admin of this web page is working, no hesitation very rapidly it will be renowned, due to its feature contents.

  • #3

    Ulysses Calder (Friday, 03 February 2017 09:28)

    For the reason that the admin of this web site is working, no hesitation very rapidly it will be famous, due to its feature contents.

  • #4

    home joy (Sunday, 06 August 2017 09:12)

    Choose a zone on your property that seems to have good daylight and might be well ventilated. Working in your basement maybe a closet definitely will really come to close in you after several hours at work and often will not encourage want you to ‘go towards work’ regularly.

  • #5

    perfect portugal property (Sunday, 06 August 2017 09:13)

    Establishments need schooling for start-up costs or or fund expansions. In accordance with your industry, you need several choices for raising the specified capital. Aside from using a savings, factors behind methods from financing are actually debt schooling.

  • #6

    black suit software (Sunday, 06 August 2017 09:14)

    Bill financing is just about the most common route to finance your internet business. You get rid of a lending product and will repay over a number of time. The lender charges appeal and will make a profit in which. The most commonly seen business lenders might possibly be the following:

  • #7

    salt health (Sunday, 06 August 2017 09:16)

    or a lot of us, buying home is the foremost costly not to mention significant money they'll ever previously make throughout their lives. Therefore, it helps to be in the recognize how to spend a mortgage profit wisely.

  • #8

    distributed health (Sunday, 06 August 2017 09:17)

    Previously finalizing typically the purchase of this business, you require one and / or several mail of pre-qualification for the purpose of loans. This simply means going via the loan system with every different lender and wedding users and attendents go-ahead through to buy the business.

  • #9

    family entertainment central (Sunday, 06 August 2017 09:18)

    I . t . consultants manage business clients to ensure the i . t . department on an organization. Consultants benefit companies in your implementation from new technology in your organization.