North Carolina Laws on Wage Garnishments, Statute of Limitations on Debt and Bankruptcy Property Exemptions
WAGE GARNISHMENT EXEMPTION: All of last 60 days earnings needed for family's support; garnishments not granted to general creditors (only for government services and taxes)
MAXIMUM INTEREST RATE: Legal: 8% Judgment: 8%
STATUTE OF LIMITATIONS ON ENFORCEMENT:
Open Account (credit card): 3 years
Sale of Goods: 4 yearsWritten Contract: 3 yearsDomestic Judgment: 10 yearsForeign Judgment: 10 yearsBAD CHECK LAW DAMAGES: $500 or three times the check amount, whichever is less, but not less than $100
NORTH CAROLINA BANRUPTCY PROPERTY EXEMPTIONS (General Statutes of North Carolina):
Cannot use federal exemptions, but can claim the federal non-bankruptcy exemptions
The State of North Carolina has exempted the property and income below from seizure by the bankruptcy court to pay creditors:
Real Property: Real or personal property claimed as residence up to $10,000 [1C-1601(a)(1)]
Personal Property: Animals, appliances, clothing, furnishings and household goods, books, musical instruments and crops, up to $3,500 total (can add $750 additional per dependent, but can't exceed $3,000 for all dependents) [1C-1601(a)(4)]; automobile up to $1,500 [1C-1601(a)(3)]; health aids, unlimited amount [1C-1601(a)(7)]; implements, books and tools of trade up to $750 [1C-1601(a)(5)]; burial plot up to $10,000 in lieu of real estate exemption [1C-1601(a)(1)]; personal injury and wrongful death recoveries, unlimited amount [1C-1601(a)(8)]
How to Deal with Debt Collectors
Federal and State Laws Regarding Debt Collection
State Laws Regulating Wage Garnishments
Insurance / Annuities: Fraternal society benefits, unlimited amount [58-24-85]; life insurance policy or proceeds, unlimited amount [1C-1601(a)(6)], employee group life policy or proceeds, unlimited amount [58-58-165]
Pensions / Retirement Plans: IRAs, unlimited amount [1C-1601(a)(9)]; legislators, unlimited amount [120-4-29]; firefighters and rescue workers, unlimited amount [58-86-90]; municipal and county employees, unlimited amount [128-31]; teachers, unlimited amount [135-9]; state employees, unlimited amount [135-95]; law enforcement officers, unlimited amount [143-166-30(g)]
Public Benefits / Entitlements: Unemployment compensation, unlimited amount [96-17]; workers compensation, unlimited amount [97-21]; crime victims compensation, unlimited amount 15B-17]; aid to blind and families with dependent children, unlimited amount [108A-36]; special assistance, unlimited amount [111-18]
Wages: Earned but unpaid wages received sixty days before filing for bankruptcy, amount needed for support [1-362]
Miscellaneous: Business partnership property, unlimited amount [59-55]; any property up to $3,500 in lieu of real estate or burial plot exemption [1C-1601(a)(2)]
