Debtors should be warned that North Carolina law allows creditors with a judgment to collect the money owed to them under certain circumstances and in certain ways. However, North Carolina doesn’t allow the garnishment of a employee’s paycheck for debts such as auto loans, credit cards, personal loans, and mortgages. North Carolina law will allow garnishment of a employee’s wages for taxes, child support, student loans, ambulance services payments (in certain North Carolina counties), and alimony.
Debtors should be warned that while North Carolina law prohibits the garnishment of wages on certain debts, the money that is owed to creditors in states other than North Carolina can be collected by a order of garnishment under other state laws. If required to do so by law, an employer can withhold an employee’s wages with a valid garnishment order from another state for repayment of a debt (The employer would not be violating the North Carolina Wage and Hour Act by honoring such a order — See Article 2A, Wage and Hour Act, § 95-25.8, Withholding of wages).
Debtors should also we warned that while it is illegal for a North Carolina employer to withhold wages from a employee to pay unpaid debts such as auto loans, credit cards, personal loans, and mortgages — the individual’s wages may be at risk of being seized if they are deposited in a bank account. If a creditor obtains a judgment in North Carolina against a debtor for money owed to them, they must follow a legal process to collect on that judgement. Under North Carolina law, the creditor with the judgment must send a Notice of Right to Designate Exempt Property to the debtor. The debtor will then only have 20 days to file a response and if they don’t respond, the debtor’s exemptions will be waived which will include the exemption of wages earned within the last sixty days and wages that are reasonably necessary for family uses that is supported by the employee’s job. Be careful because these creditors will repeatedly send these notices in the hope that the debtor at some point will slip up and not respond in time which will waive the exemption.
For debtors seeking other questions and answers in regards to North Carolina wage garnishment laws, they are advised to seek the advice of a private attorney. Residents can contact the North Carolina Lawyer Referral Service by calling (919) 677-8574 (Cary/Raleigh) or toll-free in NC only at (800) 662-7660. For those unable to afford a attorney, debtors may be eligible for legal advice through free legal assistance by contacting the Legal Aid of North Carolina office in Raleigh at (919) 856-2564.
In addition, a employee that believes that their employer is deducting a garnishment order that is more than what is allowed by the law, they can file a complaint with the NC Wage and Hour Bureau by calling toll-free (800) 625-2267 or (919) 807-2796 (Raleigh).
InfoAviator Publishing is a organization determined to help consumers facing wage garnishment activity that are currently residing in the counties of (but not limited to) Cumberland, Lincoln, Burke, Brunswick, Buncombe, Orange, Union, Durham, Guilford, Sampson, Chatham, Wake, Carteret, Cleveland, Wayne, Wilson, Polk, Randolph, Granville, Caldwell, Harnett, Duplin, Lenoir, Robeson, Columbus, Nash, Stanly, Alamance, Haywood, Davidson, Rowan, Iredell, Rockingham, Onslow, Franklin, Johnston, Mecklenburg, Pitt, Craven, Wilkes, Cabarrus, Forsyth, Catawba, Henderson, Moore, New Hanover, Surry, Lee, Gaston, and Rutherford in the state of North Carolina.