North Carolina Collection Laws

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Highlights


  • North Carolina's statute of limitations on most debts is 3 years.
  • North Carolina does not permit wage garnishment.
  • Bank accounts are not exempt from attachment by judgment creditors.
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Learn North Carolina's Rules For Garnishment, Liens, and Foreclosure

A collection agent or law firm that owns a collection account is a creditor. A creditor has several legal means of collecting a debt, if you are unable to pay the debt voluntarily. Before the creditor can start trying to force you to pay a debt, the creditor must go to court to receive a judgment. See the Bills.com resource Served Summons and Complaint to learn more about this process.

If you do not have a persuasive defense, admit to owing the debt, or fail to respond to the lawsuit or appear in court, the presiding judge may decide to grant a judgment to the creditor. A judgment is a declaration by a court that the creditor has the legal right to demand a wage garnishment, a levy on the debtor’s bank accounts, and a lien on the debtor’s property. A creditor that is granted a judgment is called a "judgment-creditor." Which of these tools the creditor will use, if any, depends on the circumstances. We discuss each of these remedies below.

North Carolina Wage Garnishment

The most common method used by judgment-creditors to enforce judgments is wage garnishment, in which a judgment creditor contacts your employer and requires the employer to deduct a certain portion of your wages each pay period and send the money to the creditor.

n most states, creditors may garnish between 10% and 25% of your wages, with the percentage allowed determined by state law. See the Bills.com Wage Garnishment article to learn more.

The North Carolina Department of Labor Web site sums up the state’s garnishment laws: “Under North Carolina law, an employer may be ordered to withhold wages from an employee and pay them to a creditor for the following types of debts: taxes, student loans, child support, alimony, and payment of ambulance services in certain North Carolina counties. However, the courts of North Carolina are not permitted to order an employer to withhold wages for other types of debts such as car loans, credit card debt, and other personal debt items.”

North Carolina treats sister-state judgments differently, however. “If a court from another state issues a valid order under that state’s laws requiring an employer to withhold a North Carolina employee’s wages for payment of a debt, the employer does not violate the North Carolina Wage and Hour Act by obeying that order.”

North Carolina garnishment restriction is found in Chapter 1, Section 362 of the North Carolina General Statutes. In addition, various North Carolina court cases, such as Harris v. Hinson, 87 N.C. App. 148,360 S.E.2d 118 (1987) have confirmed that future earnings are not subject to creditor attachment for non-priority debts.

Involuntary attachment of Social Security benefits or pensions for payment of consumer debt is not permitted under federal law, and is therefore forbidden in all states, including North Carolina. These benefits generally retain their exempt status even after they are deposited into a bank account, so a creditor cannot levy a bank account if the debtor can demonstrate that the money in the account came from pension or Social Security payments. We often recommend that people segregate those funds from by depositing the benefits into a separate bank account to avoid comingling of exempt and non-exempt funds, which can make defending an exemption claim much more difficult.

Levying Bank Accounts

A levy means that the creditor has the right to take whatever money in a debtor’s account and apply the funds to the balance of the judgment. Again, the procedure for levying bank accounts, as well as what amount, if any, a debtor can claim as exempt from the levy, is governed by state law. Many states exempt certain amounts and certain types of funds from bank levies, so a debtor should review his or her state’s laws to find if a bank account can be levied. In some states levy is called attachment or account garnishment. The names may vary but the concept is the same.

In North Carolina, bank accounts are not generally exempt from attachment by judgment creditors, so be careful about depositing money into a bank account if you have a judgment against you. Even though wages are exempt from garnishment in NC, once you deposit your paycheck into your bank account, a judgment creditor may be able to seize 100% of the funds on deposit. For this reason, it may be wise to ask your employer to pay you by physical check instead of direct deposit until you can resolve any outstanding judgments against you; receiving a physical check will give you the flexibility to cash the check rather than depositing it, thereby preventing the seizure of the funds through a bank levy.

To claim an exemption under NCGS § 1-362, go to the North Carolina Court System Web site and search for form AOC-CV-415.

Lien

A lien is an encumbrance -- a claim -- on a property. For example, if the debtor owns a home, a creditor with a judgment has the right to place a lien on the home, meaning that if the debtor sells or refinances the home, the debtor will be required to pay the judgment out of the proceeds of the sale or refinance. If the amount of the judgment is more than the amount of equity in the debtor’s home, then the lien may prevent him from selling or refinancing until he can pay off the judgment.

North Carolina laws governing the execution of judgments, including liens and other means of enforcement, are found in the North Carolina General Statutes, Articles 23 - 33. In regard to the creation of liens, NCGS §1-234 states, “A judgment docketed pursuant to G.S. 15A 1340.38 shall constitute a lien against the property of a defendant as provided for under this section;” this means that a properly entered judgment automatically creates a lien on any property belonging to the judgment debtor. In addition to liens created by court judgments, mechanics and contractors (and similar laborers and professionals) have the right to place liens on a property on which they have worked, if the owner fails to pay for the repairs or improvements made by the worker; such liens are created without judicial process and can be enforced without court intervention. For example, a mechanic who has repaired your automobile is not required to return the car to you until you pay him as agreed for his services.

You can find a list of the types of personal and real property that are exempt from seizure to pay outstanding judgments in Article 16, § 1C 1601 of the North Carolina General Statutes; while this list is not exhaustive, it is a good starting point when researching North Carolina laws concerning the enforcement of judgments.

If you reside in another state, see the Bills.com Liens & How to Resolve Them article to learn more.

North Carolina Statutes of Limitations

Each state or commonwealth has its own statute of limitations on civil matters. Here are some of North Carolina’s statute of limitations for consumer-related issues:

Account/Type Years Statute
North Carolina statutes of limitations. Source: Bills.com
Credit card 3 Channel Grp., LLC v. Cooper, No. COA09-874, 2010 N.C. App. Lexis 312 (N.C. Ct. App. Feb. 16, 2010)
Spoken contract 3 N.C. Gen. Stat. § 1-52(1)
Written contract 3* N.C. Gen. Stat. § 1-52(1)
Mortgage contract 3 N.C. Gen. Stat. § 1-47(4)
Promissory note 3 N.C. Gen. Stat. § 1-52(1)
Judgment 10 N.C. Gen. Stat. § 1-47(1)
* A contract signed under seal has a 10-year statute of limitations (N.C. Gen. Stat. § 1-47(2)). North Carolina adopted the 4 year Uniform Commercial Code (UCC) statute of limitations with regard to contracts for the sale of goods and lease contracts (N.C. Gen. Stat. § 25-2-725(1)).

North Carolina law prohibits any collection efforts on accounts owned by a debt buyer (such as collection agents) where the statute of limitations clock has expired. North Carolina requires collection agents make specific disclosures to the consumer about the time-barred nature of the debt before collecting and when accepting payments on accounts owned by the original creditor.

When the statute of limitations clock starts depends on the circumstances and the particular statute. In North Carolina, the clock starts when the contract is breached. In other words, a contract to repay the balance owed on a credit card is breached when the defendant fails to make a payment when due. The clock may be paused (called "tolled") under some circumstances, or renewed. In North Carolina, a new promise to repay an existing debt will toll the statute of limitations period, but this promise must be in writing. A partial payment resets the clock.

ollection agents violate the FDCPA if they file a debt collection lawsuit against a consumer after the statute of limitation expired (Kimber v. Federal Financial Corp. 668 F.Supp. 1480 (1987) and Basile v. Blatt, Hasenmiller, Liebsker & Moore LLC, 632 F. Supp. 2d 842, 845 (2009)). Unscrupulous collection agents sue in hopes the consumer will not know this rule.

North Carolina Collection Agency Act and North Carolina Debt Collection Act

The NC Debt Collection Act is similar to the federal Fair Debt Collection Practices Act (FDCPA) in many respects, but broadens some definitions of terms and people defined narrowly by the FDCPA. For example, the FDCPA does not apply to original creditors, but the NC Debt Collection Act applies to any person engaged in debt collection from a consumer.

NC Collection Agency Act governs the behavior of collection agencies and debt buyers. Both laws prohibit abusive debt collection conduct and provide for civil liability in the amount of actual damages, statutory damages, and reasonable attorney’s fees. In addition to actual damages, a consumer may recover statutory damages of at $500 to $4,000 per violation, plus attorney’s fees.

Collection agencies must be licensed to operate in North Carolina (N.C. Gen. Stat. § 58-70-15(a)), and non-resident collectors must post a $10,000 bond. A collection agency must identify itself in correspondence, including its permit number, true name and address, on all correspondence (N.C. Gen. Stat. § 58-70-50). When working for the original creditor, the collection agency must provide a written receipt for any consumer payments, including:

  1. Pre-numbered receipt by the printer and used and filed in consecutive numerical order
  2. The name, street address and permit number of the permit holder
  3. The name of the creditor or creditors for whom credited
  4. The amount and date paid
  5. The last name of the person accepting payment.

Copies of all receipts issued must be kept in the collection agent’s office for 3 years.

When the collection agent owns the collection account, it must issue a receipt that complies with the five requirements just mentioned, plus:

  1. Show the name of the creditor or creditors for whom collected, the account number assigned by the creditor or creditors for whom collected, and if the current creditor is not the original creditor, the account number assigned by the original creditor
  2. Clearly state whether the payment is accepted as either payment in full or as a full and final compromise of the debt, and if not, the receipt shall state clearly the balance due after payment is credited.

See N.C. Gen. Stat. § 58-70-70 to learn more about the receipt requirements in particular, and Chapter 58 to read the entire statute.

North Carolina Spousal Debt

Generally, spouses are not liable for the other spouse’s debts in North Carolina. However, North Carolina follows the common law doctrine of necessaries (also called the doctrine of necessities). Spouses are responsible for each other's medical costs (Alamance County Hospitals, Inc. v. Neighbors, 315 N.C. 362, 338 S.E.2d 87 (1986) and North Carolina Baptist Hosps., Inc. v. Harris, 354 S.E.2d 471, 472 (N.C. 1987)). The Harris court mentions the North Carolina doctrine of necessaries applies to minor children, too.

North Carolina Payday Loans

North Carolina outlaws payday loans both at in-state storefronts and from online lenders. According to the North Carolina attorney general’s office, "Internet payday loans are not legally enforceable in our state, although some Internet lenders who are based overseas or on Indian reservations claim not to be subject to North Carolina law. We are currently fighting online payday lenders in court."

Recommendation

Consult with a North Carolina attorney experienced in civil litigation to get precise answers to your questions about liens, levies, and garnishment in North Carolina.

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  • 35x35
    Apr, 2013
    Jeremy
    I live and work in Japan but my home of record is in North Carolina. During a routine trip home in early 2012, I discovered a negative entry on my credit report by DFAS (Defense Finance & Accounting) for a supposed delinquency in June 2011 for about $1300. Although I am a Veteran, the last time I worked on a military base was in 2007 as a contractor. To make a long story short, through much investigation and going back and forth with a collections agencies (they were nice to me for whatever reason), I eventually found out that the delinquency is from a hospital stay on Yokosuka Naval Hospital, Japan. Putting aside the fact that I was billed almost $7,000 for a two night stay in the hospital just for an infection, it turns out that my health insurance provider didn't pay the full amount. I had provided accurate mailing and contact information to the Navy Hospital several days after my stay but it appears that their system could not input all of the parts of my Japan address so they just mailed it out with an incomplete address. I had also told the hospital to call me if there are any problems but I never heard anything and never saw anything on my credit report so I just assumed that it got paid and all is great. The information above is what I gathered over the past year trying to figure out what the hell is going on. I submitted disputes to Equifax but they just say that the information on file is accurate. I contacted the collection agencies to let them know that I don't think the bill is accurate because I don't know what it is for (at the time) but the agencies say that this is a difficult situation since I live in Japan. Apparently they are not allowed to communicate to foreign addresses. I then sent DFAS a 26-page tome of everything that had happened with evidence of my correct mailing address and attempts to make sure I had no billing issues. However, the packet was returned because the address listed on Equifax's report was incorrect. I then filed a complaint with the Consumer Financial Protection Bureau which of course, they just replied with an updated DFAS address and stating that they contacted Equifax and DFAS but I need to work with the Collection agency to resolve the issue. Arrghh!!!! This is so frustrating. I guess I should contact my health insurance provider to find out why they didn't pay the full amount but I don't think this is fair to be thrown into collections for the Navy Hospital's screw up as I can't resolve or pay something that I didn't know about. Not only that, I was denied a credit card limit increase even though I keep the balance at zero because of the entry on my credit report. I was also supposed to receive a claim from the TSA because they destroyed my luggage a few years back but the funds where garnished by DFAS because of my alleged delinquency. Is there anything I can do to get a favorable outcome besides just sucking up my pride and paying the bill? Thank you in advance for your advice.
    0 Votes

    • 35x35
      Apr, 2013
      Bill
      You are in uncharted waters as far as I am concerned regarding all parties' relationships to DFAS. The only suggestion I can offer, and I admit it is not very insightful, is to contact your local DFAS office of customer service representative to learn if the DFAS offers a dispute procedure for these types of situations. The DFAS Web site is unclear on this subject, but I would be surprised if none were available.
      0 Votes

  • 35x35
    Nov, 2012
    john
    I had a gym membership before I left for the military, and a called and cancelled it a month before I left and they said, "You're good to go, be safe." Now I'm back and I go to the gym to rejoin and they said, "Your account is turned over to collections, call them, you owe $800." I called the collector and he was really rude and basically said f- off. I asked to talk to a manager, and he refused. The gym is refusing to fix their mistake. I'm mad because I went to serve, and they screwed me over. What should I do?
    0 Votes

    • 35x35
      Dec, 2012
      Bill
      Four routes to work on this are:
      1. Continue speaking with the gym, addressing the management or owner, and impressing upon them what you were told and your desire to continue being a member of the gym.
      2. If you have any access to the JAG office or other resources available through the VA, find out if you have any protections due to your service duty.
      3. Speak with an attorney, to see if you have any cause of action.
      4. Try to work out a settlement with the collector.
      0 Votes

  • 35x35
    Jun, 2012
    Tim
    My wife lost a car due to job loss. She went from making $70k/year to $34k. The balance is just a little over $10k and the creditor has repeatedly stated they will not settle. They have now served her with a Civil Summons. My thought process is to let them get the judgement. Our home, solely in her name, still has a balance of what the current market says its worth. Would they still be able to place a lien on it and if so would it expire after 10 years, unless they renewed the judgement.
    0 Votes

    • 35x35
      Jun, 2012
      Bill
      I dislike your idea of waiting passively for a judgment. Consult with a lawyer about filing an answer and make the creditor prove your spouse owes the debt.

      A lien is a possible outcome of a judgment. A lien is possible regardless of how much or little equity the owner has in the property.
      0 Votes

    • 35x35
      Jun, 2012
      Tim
      After thinking about it I consulted an attorney. His idea is a Chapter 13 so we'll see what happens next week. Thanks for taking the time to answer.
      0 Votes

    • 35x35
      Jun, 2012
      Bill
      Glad to hear you consulted with a lawyer. A chapter 13 will force the creditor to accept the payment plan the bankruptcy trustee determines you can afford, and may discharge any remaining balance after the plan concludes. This is strong medicine for both parties, but sometimes this is the only option when a creditor refuses to negotiate in good faith.
      0 Votes

  • 35x35
    Apr, 2012
    michael
    I went through a messy divorce 4 years ago in North Carolina. As a result I had serval credit cards default and my house foreclosed. How long until I can clear it off my credit report?
    0 Votes

    • 35x35
      Apr, 2012
      Bill
      Please read the Bills.com article Fair Credit Reporting Act for answers to your credit report-related questions.
      0 Votes

  • 35x35
    Apr, 2012
    Tracey
    If there is a judgment against me can my house be in jeopardy if it is in both my and my spouse's name? The debt is only in my name?
    1 Votes

    • 35x35
      Apr, 2012
      Bill
      Reread the original answer above to see your general rights and liabilities. In particular, read the section on liens. I assume based on the page where you posted your question you reside in North Carolina. For more specific legal advice about your situation, consult with a North Carolina lawyer who has consumer law experience.
      0 Votes

  • 35x35
    Apr, 2012
    T
    I had an eviction from an apartment community. My dad co-signed. They filled a judgment against him and are saying they will have the Sheriff come out and seize property if the debt is not paid. Can they seize property? It was my apartment but they are not pursuing me, they are going after him as my co-signer. Also, what is the best way to settle? I would like to have a payoff. I owed $2,600 then $4,000 but now they are saying I owe $6,000. What steps do I need to take to get this cleared up?
    0 Votes

    • 35x35
      Apr, 2012
      Bill
      A creditor may pursue either or both co-signers to a contract. The fact you resided in the property does not make you any more or less liable for the contract under the law.

      The claim of a sheriff seizing property is interesting. In law, this equitable remedy is known as "replevin." I did a quick, and probably incomplete, search of North Carolina law for replevin and found it is allowed, but not for the type of situation you described. However, I hasten to add I am not a North Carolina lawyer nor am I trained in North Carolina law, and therefore am incompetent to offer you a legal opinion about your situation. Consult with a North Carolina lawyer who has consumer law experience, and in particular, ask if replevin is allowed here.
      0 Votes

  • 35x35
    Apr, 2012
    Cj
    Last August my wife had to be taken by EMS to the hospital. Due to this occurance we accumilated mant large medical bills. We began paying on each of them but were not able to pay them in full due to other things coming up so when we received our Federal and NC State tax refund we used this to pay the outstanding medical bills including the EMS bill. The next month my wife's paycheck was almost $300 short. After investigation she learned this was due to an EMS bill garnishment. After speaking with EMS billing, the County Tax Dept, and my wifes employer we learned it would take 6-8 weeks to receive a refund. She received no notice that the garnishment would be occuring. Any Suggestions on how to resolve this??
    0 Votes

    • 35x35
      Apr, 2012
      Bill
      Consult with a North Carolina lawyer who has employment law or civil litigation experience. You may have a cause of action against the EMS collection agent for failing to follow North Carolina's civil procedure laws. Or, if the collection agent is based outside of North Carolina, you may have a cause of action for failing to follow the FDCPA, a federal law.
      0 Votes

  • 35x35
    Apr, 2012
    melissa
    Last year, I joined a debt management program to help me with 2 credit cards and a person loan. One of my credit cards was settled. The other day I was contacted by a law firm about my personal loan from a bank. I have gotten anything in the mail yet from them. I do own the debt so if they get a judgment against me how can they go about recovering the debt I owe.
    0 Votes

    • 35x35
      Apr, 2012
      Bill
      First, contact your debt management program administrator, presumably a credit counselor, and describe the telephone call you received. If you receive any letters or documents relating to any of your enrolled debt, share those with your credit counselor immediately. Your credit counselor should already be in contact with the bank regarding the personal loan, so it is surprising an attorney representing the lender would contact you.

      Second, regarding your question about what can happen if the creditor goes to court and receives a judgment, please reread the original answer above to learn about your rights and liabilities.
      0 Votes

  • 35x35
    Mar, 2012
    Jim
    My mother had a stroke three years ago and was unable to pay her credit card. She does not work and has no income except Social Security. She recently received a summons for civil trial. There is no way she can go to it. She and my father have a house that is paid off and in both their names. Their bank account is also in both their names. He is retired and his only income is Social Security as well. Could they put a lien on the house? If they did how long could it stay? If their health got worse and they wanted to transfer the house to me would a lien keep that being able to be done? Also can they seize their bank account since it is a joint bank account? Thanks for your help
    0 Votes

    • 35x35
      Mar, 2012
      Bill
      I assume your parents reside in North Carolina. If so, please review the original answer above, and follow the hyperlinks to related Bills.com content to learn the answers to your questions about liens and levies. You mentioned a summons to appear. The best gift you could give your parents is to help them hire a local lawyer who has consumer law experience. He or she will attend the trial on your mother's behalf and represent her interests.
      0 Votes

  • 35x35
    Mar, 2012
    Paul
    I called a drain field company to give me a estimate on a new drain field. He calls it a service, no written estimate or service was given when he finished he wanted $90. i thought he was kidding. I payed him by check after i calmed down. i left messages he never call back, i stopped payment now he sent letter for payment never was told there was a charge is why i stopped payment. I am in North Carolina. Says he taken me to small claims for payment. Do i have to pay? Thank you
    0 Votes

    • 35x35
      Mar, 2012
      Bill
      Depends. If the person who looked over your property took measurements and dug around to analyze the soil, and otherwise spent time analyzing your problem, then the $90 seems fair. Ditto if you live 30 minutes away from the company's office, and the inspector/estimator spend time on your property and explained the diagnosis to you. Your question does not describe the value you received for the person's time. Why don't you appear for the small claims hearing and let the judge decide if $90 was reasonable?
      0 Votes

    • 35x35
      Mar, 2012
      Paul
      There was no work done at all never no measurements, shovel, or any other work just verbal never went to septic tank or walked property, was only told a price and permits were needed, talked more about family the owner was not present they are about 10 to 15 miles away thank you so much for your response you can email me if you like or post Thank You for your time.
      0 Votes

  • 35x35
    Mar, 2012
    Anne
    My husband was stationed in NC while in the Marines 15 years ago, while there he got a speeding ticket and a Failure to Appear. We now live in Utah and he is unable to get a UT drivers license because there is a judgement against him for these items totalling over $2000. We have contacted the counties in NC and they are not willing to work with us on payments. If it is a city, county or state judgement against him, should the statute of limitation of 10 years be enacted and these items removed? Thanks.
    0 Votes

    • 35x35
      Mar, 2012
      Bill
      Consult with a North Carolina lawyer who has experience in litigating consumer law issues in the county where the offense occurred. He or she will advise you of your rights and, more importantly, any negotiating tactics that may resolve the debt for less than the amount the county claims your spouse owes.
      0 Votes

  • 35x35
    Feb, 2012
    Craig
    Hello. I live in NC. I have over $110,000 in student loan debt that I received at several various Florida schools and one in Charlotte, NC over 20 years ago. I did attempt to make payments but never finished a degree at any of the schools and could not afford to make even the income sensitive payments that they were requesting. They are now garnishing my wages for 15% of my wages. I do owe the money, but based on my wages alone, I cannot even make the minimum payment of just the interest of around $800 per month (A Sallie Mae Rep even agreed with me that it was impossible about 4 years ago when I made about $2.00 more per hour) I know about claiming hardship status and filing bankruptcy and chapter 7 & 13 options....My question is about my wife and her new income. She is going to be making about $60,000 per year. If I file for a hardship under student loan guidelines, will they take her income into consideration even though we have only been married for 10 years, and she was no where around when I incurred these debts? If i tried to seek an income sensitive payment plan, even if it is an option for me, would they also take her income into consideration for this also? Thank you in advance for your answer. I appreciate your site and forums.
    0 Votes

    • 35x35
      Feb, 2012
      Bill
      The answer would depend on the type of loans that you have. If they are federal student loans then you might qualify for an Income Based Repayment. Your wife's income would be included if you are filing jointly. Read the Bills.com article about IBR Student Loan Repayment for more information.
      0 Votes

  • 35x35
    Feb, 2012
    DEDRA
    I have recently went go and apply for to buy a home in( I live in greensboro, NC). I was told that I have a judgement from 8/15/04 on my credit report from a auto accident one year prior to that. I want to know this being an old judgement (04) do I still have to pay this off? Can the creditor sue me anymore since this is in place already? And what are the statues of limitations that I should go by to resolve this issue or help me with my case? Also is this something i can do on my own or will i need attorney representation?
    0 Votes

    • 35x35
      Feb, 2012
      Bill
      The original answer above discusses the basics of your rights and liabilities in North Carolina. One of my rules at Bills.com is, "If a reader asks, 'Do I need a lawyer?'" my answer is always "Yes!" A lawyer's time is not cheap, but acting in ignorance of your rights can be very expensive indeed.

      Even if you had not asked if you need a lawyer, I would have recommended you consult with one anyway, because resolving a judgment can be tricky.
      0 Votes

  • 35x35
    Jan, 2012
    Don
    A creditor has a judgement against my wife and yesterday the sheriff's office served her with papers to file for her property exemptions, which she is filling out but hasn't filed yet. She has no property such as real estate, cars, or anything else other than her clothes and other personal belongings, in her name and she hasn't been employed in over 10 years. The bank account is in my name only, as is our car and we rent our home. Can a creditor seize property or a bank account that is in my name since we are married?
    0 Votes

    • 35x35
      Jan, 2012
      Bill
      You ask this question on the North Carolina page, so based on the context I will assume you and your spouse are North Carolina residents. In some community property states, creditors can reach property owned by both spouses. However, North Carolina is not a community property state. Because North Carolina is a common law state, there is no means I know of for a creditor to reach a spouse's separately owned property.
      0 Votes

  • 35x35
    Jan, 2012
    Chris
    I have a substantial credit card debt that i have been unable to pay. My last payment was in May 2009. In September of 2009 I received a letter notifying me my account was being closed and i have not received a statement since November 2009 nor have i been contacted by the bank. Of course i have received numerous calls from debt management companies posing as debt collectors. My question is concerning the statute of limitation. After 3 years, am i clear of this debt if i have not received notice of being sued for the balance? Thanks
    0 Votes

    • 35x35
      Jan, 2012
      Bill
      From your question it seems like the 3 year limit is not up. However, if you feel that the statute of limitations is up, then consult with a local attorney as to your rights. It is still possible to be sued after the 3 year period.
      0 Votes

  • 35x35
    Jan, 2012
    Lynda
    I represent a company that provides outdoor recreation services. We were given a personal check by a woman who brought many daycare students to enjoy our services. She immediately stopped payment on the check saying that her son had been sick and she needed the money for him. I've been looking for theft of services laws in North Carolina and cannot find them. I've written her and her boss several demand letters with no luck. What would be a good next step?
    0 Votes

    • 35x35
      Jan, 2012
      Bill
      You can sue the women for the stop payment on the check. I recommend that you speak with an attorney specializing in banking laws and regulations in your area.
      0 Votes

  • 35x35
    Jan, 2012
    John
    I live in North Carolina and have 2 judgments against me for credit cards I could not pay due to a job loss. These cards were in my name only. I have nothing in my name - everything is jointly owned with my spouse. Can the judgment creditor put a lien on our house or attach our joint bank account?
    0 Votes

    • 35x35
      Jan, 2012
      Bill
      If a judgment-creditor obtains a court judgment against you then a bank levy can be placed on a joint bank account, and a lien on your personal property, whether it is titled in your name alone or titled jointly. Close or abandon joint accounts. Joint accounts are open to a bank levy. In addition, I suggest you read the Bills.com article about debt relief.
      0 Votes

  • 35x35
    Jan, 2012
    CARL
    I have a Judgment against former employer for unpaid wages in North Carolina. I am not a collection agency. It is lawful to post on the internet the Judgment info such as case#, state, and Judgment Debtor name? This is already public information, but I was told by a collection agency that it would violat Federal and state laws, leaving me open for a lawsuit.
    0 Votes

    • 35x35
      Jan, 2012
      Bill
      Read the Fair Debt Collection Practices Act before you publish any information about the debt on the Internet or elsewhere. Failure to comply with the FDCPA may result in civil damages.
      0 Votes

  • 35x35
    Jan, 2012
    mitchell
    I got a writ of execution on a judgment against my company. My company is listed as the defendant. They list personal property or real property of the defendant. Can they levy all my accounts or just the one's under the name of my company? Also can they come after my personal property that's in my name, or the company's?
    0 Votes

    • 35x35
      Jan, 2012
      Bill
      The answer to your questions depends on how you organized your business. If your business is a sole proprietorship or a partnership, then your business and you are one in the same, from a liability perspective.

      However, if your business is some form of corporation, was incorporated according to the rules in your state of incorporation, was funded properly, you followed all of the formalities of electing officers and kept records of board meetings, and you did not treat the corporate accounts as your personal piggybank, then you and your business are separate.

      Consult with the lawyer you may have used when forming your business to learn what personal liability you have for the judgment against your business.
      0 Votes

  • 35x35
    Jan, 2012
    Kevin
    I was 3 payments late on my car payment and turned it into the bank, and still owned the difference i payed what i could when i could. Now about two months ago i got a sheriff give me a property exempt papers and lost them when i found the is was after the 30day. Now i got served a writ of execution. I'm on unemployment i have a car that i drive to look for jobs and take my son to school, also the other car my wife drives to work and school we still own money on. we live in NC is there anything i can do?
    0 Votes

    • 35x35
      Jan, 2012
      Bill
      Since the writ of execution has been made, and you did not file the request for property exemption, I believe it is too late to stop the judgment. However, since I am not a lawyer, I cannot give you legal advice. I recommend that you speak with a local lawyer. If you cannot afford a lawyer then call your county bar association and ask for the names of the organizations that provide no-cost legal services to people with low or no income in your area. Make an appointment with one of the organizations, and bring all of the documents and letters you have regarding the debt to your meeting. The lawyer you meet will advise you accordingly.
      0 Votes

  • 35x35
    Dec, 2011
    Crystal
    Hi. My husband has an old Discover card debt. We were making payments to the creditor Smith and Debnam until he lost his job last December. Of course we couldn't make payments on it. Instead of trying to work with us, they went ahead and had the sheriff contact us. We received a letter today stating that the sheriff's office holds an execution for the collection of money for the debt. What can the creditor legally do to us. My husband is the only one working, we've already lost our home to forclosure. We have nothing of value and my husband's pay just makes the bills each month with a little left over for groceries and gas.
    0 Votes

    • 35x35
      Dec, 2011
      Bill
      Under North Carolina law, a judgment-creditor may not garnish a resident's wages, unless the judgment-creditor has a non-North Carolina judgment. Judgment-creditors can place a levy on a judgment-debtor's bank account or personal property.

      What to do? First, close or abandon any joint accounts. Second, your spouse should remove any funds deposited in his accounts, as he could lose them if a levy is placed upon them. Third, negotiate a new settlement to resolve the debt.
      0 Votes

  • 35x35
    Nov, 2011
    Yvette
    I have a judgement on my credit report that is paid in full. I would like to have it removed. The judgment was for rent payments. What are my options if any???
    0 Votes

    • 35x35
      Nov, 2011
      Bill
      You can try disputing the judgment, and it could be that the court that issued the judgment does not take the proper steps to verify its existence. Another option is to consult with a professional credit repair company, as long as you keep in mind that there is no guarantee that efforts you make on your own or with a professional will necessarily succeed.
      0 Votes

  • 35x35
    Nov, 2011
    Ebonee
    Hi Bill. I recently had a company notify me of a debt on a personal loan from 2004. They are saying I never made any payments which I know I did and threatning to "come after me" now that they have my currect contact information. I am in the military and at the time I incurred this debt I was not living in NC. The creditor is not located in NC either. Would the statute of limitations apply to me since I am and have always been a legal NC resident and now live here. Any advice would help. Thanks!
    0 Votes

  • 35x35
    Oct, 2011
    Robert
    now what if the doctor desputes the claim that he told me the services where at no charge? doesnt the 3 year statute of limitations protect me or no?
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      If an opponent contradicts one side's statement of what a spoken contract contained, then it is time to look for evidence on both sides. For example, gather written statements from other former employees that the free services for employees' pets was promised to them too. Also, the passage of eight years before initiating collections suggests the employer had the free-services policy. Depositions of an opponent also can reveal the terms and conditions of spoken contracts.

      You mentioned your state's statute of limitations. This may be a viable affirmative defense depending on when the delinquency started. Again, consult with a lawyer in your state who has litigation experience to learn more about your rights and potential liabilities.
      0 Votes

  • 35x35
    Oct, 2011
    Robert
    Hello, I worked for a vet clinic about 8 years ago. When I worked there the Doctor told me "I will take care of your animals at no charge while you are employed here". Come to find out, he kept track of the services by charging a house account for the services and has now sent me to collections for the money. Again this was 8 years ago. He never asked me to pay any fees when I was working there. Any advice?
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      Macy's does not make its employees repay the employee discounts they received while employed, for example. The vet's promises were a form of contract, and a fringe benefit of your employment. Consult with a lawyer in your state who has experience in litigating contract disputes. I am willing to bet that when your lawyer fires off a letter explaining the the vet that spoken contracts are enforceable under your state's laws, he or she will cease collection efforts.
      0 Votes

  • 35x35
    Oct, 2011
    M
    Question: In December 2005, I was given an opportunity loan program packet from an online university. I attended one class and dropped the program. From what I am now finding out via consolidating my government loans, this packet included a private loan from Sallie Mae. According to the college, $2467 was received from this loan, but only $967.94 of it was used for the program. $1499.06 was returned to the lender on Feb 22, 2006. I've had two collection agencies recently contact me over the loan, I directed them to my consolidator until I learned that this could not be consolidated because it is a private loan. I was informed that the loan interest rate is 13.25% and the only payment received by their records was in October 2006 (which must have been the $1499.06 that the college returned). According to the collection agencies (two different ones), the repay is around $2300 to $2400 as the account continues to collect around $60 a month in interest. NC Statute of limitations is 3 years on written contracts, can this account continue to accrue interest and should I be paying back twice the principle on a private student loan? If I don't pay, what recourse do they have in NC? They continue to stress that they need a good faith payment ASAP to keep from putting a lien on my home, but I think that this is to restart the statute and lock me into what they claim is the full principle amount of over $2000. The actual principle is $967.94, and at $60 a month in interest, does not sound as if they have been applying that correctly over all of this time. On a simple monthly loan of $968 at 13.25% over 5 years, the interest would only be $360 ($1328 total)and on a simple interest loan at daily APR (which one collection agency stated it MUST be as they aren't sure) would be a total of $641 over the span of 5 years on a loan for $968 ($1609 total). $60 a month in interest does not sound feasible as it does not fit the loan maturity model. Any advice would be appreciated.
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      I would be interested to see the drop policy of the school. In the schools I attended, a student had the option of dropping classes early in the semester and incur a small fee that was a fraction of the full tuition. Paying a full quarter or semester's fee for attending one class seems unreasonable and unfair.

      I agree that making a "good faith" payment is almost certainly a ploy to reset the statute of limitations. Why do I conclude this? Collectors for private student loans have no administrative power to garnish wages. The Carolinas outlawed wage garnishment by judgment creditors. Therefore, the Dept. of Education could get a wage garnishment for delinquent borrowers in those two states, but private student lenders may not. To get a lien on your real property, the collection agent would need to file a lawsuit against you, get a judgment, and then use the judgment to get the lien. Doing so would be a long process. Your "good faith" payment will not prevent a pending lien.

      Consult with a lawyer in your state. My guess, note that word choice, is your lawyer will advise you to stand pat and pay nothing. Should the collection agent file a lawsuit against you, defend yourself by showing that the initial amount due was unreasonable given your attending one class, and that the present amount due is contrary to your state's usury law and the amount stated in the contract.
      0 Votes

  • 35x35
    Oct, 2011
    Alfred
    Hi back in July I accidentally caught a farmer's field on fire. The fire marshal did not say i had to pay any thing, but I was told to pay $1000 to the farmer for his losses, in order to avoid getting sued.So, Ii paid $100 of the $1000 supposed owed, but nothing was every judged a mandatory ruling. Then, I lost my job and couldn't pay. I was 18 year old at that given time still am but I am worried that I could still get sued, because I now have a job. Is there a time limit on civil suits in North Carolina? Please tell me asap.
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      If my understanding of your state law is correct, the farmer has three years to file suit against you for property damage in North Carolina, according to my reading of N.C. Gen. Stat. § 1-52(4). Consult with a lawyer in your state who has experience in civil litigation to learn authoritative answer.
      0 Votes

  • 35x35
    Sep, 2011
    al
    if i have a judgement against me and fiancee for $5000 for unpaid rent, can a lien be placed on my car? we don't own a home, all i own is one vehicle free and clear. oh i live in North Carolina by the way. also if i last paid rent in January 2011, would i be free and clear from the collection of this unpaid rent 3 years after the last day i paid landlord in January 2011?
    0 Votes

    • 35x35
      Sep, 2011
      Bill
      Review the original answer above for a discussion of what remedies a judgment-creditor can take against a North Carolina consumer.

      Regarding your second question, you may be asking about the statute of limitations on debt. You mentioned a judgment. In North Carolina, as in many states, a judgment is valid for 10 years. If the creditor has a judgment against you, then your state's other statutes of limitation do not apply.
      0 Votes

  • 35x35
    Aug, 2011
    Denna
    Bill - I hate that so many of us hard working Americans are going through the same thing. Hopefully we are ALL learning not to get into credit card debit to begin with from now on. Like others I too am learning this lesson. I live in NC and am facing a possible judgement on an old credit card debit. I have 1 have settled and 3 still out there. One of which is coming hard. All 3 of them I have not paid on since November 2008. I went to a debit relief company who took my money to pay themselve 1st without paying anything to my debits. After $1,000.oo paying them, I got wise and cancelled. So by this time I was well into not making payments to the credits. I also at that time was pregnant and got laid off! So being married we keep my husband's credit great and continued to let go on my 3 credit cards. Now 1 of them has come at my hard with serving me with legal papers and judgement is around the corner. Several questions - since I am so close to the 3 year limit, the 2 that I have not heard from other than an letter here and there, should I continue to ignore? On the one that has legally served me, they want $6700.00. I have made $100.00 payments for the past 3 months before they had me served. I tried to settle today for $2000.00 they will not settle for less than $5200.00 they said. I am still withing the 30 day window according to the civil summon paperwork last week I was served to write a reply letter. The real estate attorney advised me our home is safe because the credit card is in my name only and our house loan is in mine and my husband name. My car is paid off. My bank account and small savings account are joint accounts. Also we are expecting a good tax refund next year. Can the judgement come after tax refunds if my husband and I file jointing? I do not work. I would appreciate any help you can provide so I know which direction to head. I understand that debit is mine and I am trying to settle, they just want more than what I have to give them! But I also don't know what I should do about the other 2 who are out there just have not come after me with civil summons. Respectfully.
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      I can't give you legal advice, because only an attorney is legally allowed to do so. However, I will share some thoughts with you.

      If a judgment is issued against you, joint bank accounts are at risk. All funds should be held only in your spouse's name. A lien can be filed against you that would encumber the home. That means if you tried to sell or refinance the home, the lien would need to be paid, even if it were against only you. I do not believe that there is any risk for losing the home.

      In some states, a paid off car can be seized and sold to pay off a judgment-debt. I do not know if that is the case in NC or not. Your tax return should be safe; a credit card judgment-creditor does not have the ability to take your tax return.

      My gut feeling is that you should continue to negotiate at the level you can afford to pay. I do think you should consult with an attorney, to see whether or not your car is at risk. If not, and you keep all the funds in your husband's name, the creditor will have a tough time getting blood from a stone. Don't agree to a high dollar settlement, especially if you can't see it through.

      I think you will have to work to negotiate settlements with each of your creditors. Perhaps your tax refund can be a source to use to reach lump sum settlements with all of them.
      0 Votes

  • 35x35
    Aug, 2011
    Lisa
    I was co-buyer on auto-loan, 3years ago, when my ex was late with payment. I called the company and asked that they send a statement and copy of the contract. I was going to make payment and get the car. The company never sent me anything. My ex sent me a notarized statement that I have nothing to do with car. I didn't know anything until month ago was served with court summons. I have house in my and my father's name that's not paid off, a car that's not paid off. I don't refuse to pay, but the company never could get a car from my ex. Is it possible I can settle with company in court or they will demand full amount what is more then 20K?
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      It could be possible to negotiate a settlement. The fact that North Carolina has strong wage protections increases your leverage.

      As you are finding out, the notarized document your ex gave you is not binding on third parties, such as the car finance company. However, the document may have created an obligation between you and your ex that your ex breached.

      I think that you should speak to an attorney.
      0 Votes

    • 35x35
      Aug, 2011
      Lisa
      Bill ,thank you very much for your website, it's very helpful.
      0 Votes

  • 35x35
    Aug, 2011
    Samantha
    I have a really high balance on one of my credit cards. I've struggled for two years to make my payment every month and on time. I have never been late on this bill or any of my other bills. I have great credit, but my budget is stretched to the max. I own my home and have a car and 1 other credit card with a balance. I've contacted the credit card company on at least 3 different occasions in the last year, the latest being about 6 months ago to see if i could get lower payments temporarily, or lower my interest to give me some kind of relief. They won't do anything...not even budge. I'm seriously contemplating not paying this bill. Can you tell me what will happen other than my credit score be lowered. I have a home and other credit card in good standing that are not in danger. This is the only thing that is putting me over monthly. Can I rebound without paying this credit card company. What are my options. I know I will get a judgment against me eventually. When does that normally happen. I've never been in this situation before. If i stop paying will my other credit card company raise my credit limit or close my account. As far as i know they can't put a lien on my home or car. How will this affect my student loans. I live in NC. Any idea how long I will have before my account is charged off and sent to to court for judgment. Thank you
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      Defaulting on your payment obligation should not be your first course of action, in my opinion.

      Is part of the reason you are having problems paying the bill related to your interest rate? If so, speak with a credit counseling program.

      You did not specify how high a debt that you have and different people have different ideas of what a 'really high balance' is. If it is over $10,000, I suggest that you also speak with a reputable debt settlement firm. North Carolina has strong protections for wages, if a creditor gets a judgment against you. That, combined with the new FTC rules that make it so that you pay no fee to the debt settlement firm before your account is settled, makes settlement well worth examining. Keep in mind that your credit will take a big hit, if you go this route, and that you likely have to include all your credit card accounts in the program (though you may be able to keep one card open for emergencies, but not for regular use).

      How long it takes to be sued or even if you are going to be sued is difficult to answer. It is usually the case that the debt is first going to go into the hands of a collection agency, somewhere around six months after your first delinquency. The collection agent may try to work with you or may be aggressive about legal actions. In a state where wages can't be garnished by a credit card judgment-creditor, it is my feeling that creditors are less likely to pursue legal action. However, it is still their right to do so. If a judgment is obtained against you, it can definitely lead to a lien on your home, a levy on your bank account, and may even put a car you own at risk.
      1 Votes

  • 35x35
    Jul, 2011
    Allie
    I am anticipating a judgement being granted against me shortly. My husband has his own individual account, but it was funded with joint funds- IE: funds that were in a joint account were transferred to his individual account. Are those funds at risk because at one time they were jointly my funds or are they protected solely because they are in his individual account? If I were to have my wages direct deposited to his account, would the entire account be at risk of being levied even though the account does not have my name on it anywhere? We are in NC. Thank you!
    0 Votes

    • 35x35
      Jul, 2011
      Bill
      Let us say for the sake of argument that the judgment-creditor discovers the transfer of funds from a joint account to your spouse's account. The judgment-creditor would have to go before a judge and argue that the transfer was made for the purpose of avoiding an account levy. I do not know if the burden of proof would fall to the judgment-creditor or the judgment-debtor to show transfer was (or was not) permitted under their state's laws. Consult with a lawyer in your state who has consumer law experience to receive a more precise analysis on the transfer question.

      Regarding the direct deposit, again, consult with a lawyer in your state to learn how your local courts have answered the issue of depositing wages into an account that is not in the wage earner's name. I would be surprised if it was prohibited.
      0 Votes

  • 35x35
    Mar, 2011
    scott
    Bills, what is stat of limitations in nc on a federal payroll debt....specifically dfas
    0 Votes

    • 35x35
      Mar, 2011
      Bill
      It is not possible for me to answer your question about a Defense Finance and Accounting Service debt without knowing more about the circumstances surrounding the debt. Consult with a North Carolina lawyer who has experience with civil litigation. He or she will be able to ask you questions, determine the nature of the debt, can research North Carolina and federal law, and can advise you precisely.
      0 Votes

    • 35x35
      May, 2011
      Rebecca
      Is a joint bank account exempt from garnishment if I direct the bank to establish the account as joint tenancy? The debt owed is only in my name.
      0 Votes

    • 35x35
      May, 2011
      Bill
      In all jurisdictions I am aware of, a joint account is vulnerable to a judgment on any account owner.

      Joint accounts create more problems than they solve. Accordingly, I advise readers to avoid joint accounts of all types. If two (or more) people need to exchange money, I suggest they open separate accounts at the same credit union or bank and set up that institution's mechanism for making transfers between accounts.

      You can tell your bank or credit union whatever you want, but financial institutions must follow a court's orders. As I mentioned above, each person should open their own separate account using their own tax ID or Social Security number. That way, only the person with the judgment is at risk of an account levy.
      1 Votes

  • 35x35
    Mar, 2011
    Mike
    I just received an insurance bill, dated 2/03/11, for $38.00 for services received on 3/14/2006. I lived in Mississippi at that time but now live in North Carolina and canceled the insurance in 2006 prior to us moving. The charge was discovered during an audit and the statute of limitations for both states is 3 years. When does the statute of limitations begin or is it beyond? Is this something that can be sent to an collection agency? Or should I just pay it off?
    0 Votes

    • 35x35
      Mar, 2011
      Bill
      The statute of limitations starts running from the date of your last payment on the account. If you are receiving a bill, I feel it is safe to assume that the bill could be turned over to a collection agency.

      I recommend that you first dispute the bill with the insurance agency, working your way up the chain of command until you get satisfaction. It is reasonable to complain about not receiving a bill for five years. If the insurance company does not meet your request, you can choose to pay the bill, to avoid the account being turned over to a collection agency and appearing as a collection account on your credit report. It is not 'fair' for you to pay a bill you should not have to pay, but it may be the path of least resistance to avoid any potential problems. Before you choose to pay the bill, check with the state agency that regulates insurance in Mississippi and see if they can offer any assistance.
      0 Votes

    • 35x35
      Mar, 2011
      Mike
      I canceled the insurance in 2006, so the statutes of limitations should begin at that time?
      0 Votes

    • 35x35
      Mar, 2011
      Bill
      I am reluctant to answer yes or no without knowing more about the situation.
      1. What was the term of the insurance contract? When was it supposed to expire?
      2. When was your last payment? When was the next payment due?
      3. You mentioned canceling the contract. Did you do so in writing?
      4. Are you planning to apply for credit soon? If so, paying the $38 is a cheap way to preserve your credit score if it is in the 700s. On the other hand, if your score is terrible, why worry about another derogatory item on your credit history?

      As I mentioned in this and my earlier answer, $38 is small amount to fret, especially if you have a lofty credit score.

      0 Votes

  • 35x35
    Dec, 2010
    sarah
    I foresee a judgement being placed on me in the near future. I am probably going to close on selling my house within the next 2 weeks. Would it be illegal to put the proceeds from the sale in a bank account in someone elses name? Would this money still be able to be garnished if they know its mine because it is what I gained by selling my home? If this is legal, would they have the right to take it even though I sold the house before the judgement was ordered?
    0 Votes

    • 35x35
      Dec, 2010
      Bill
      Generally speaking, what you described becomes illegal if a court orders you to present a description of your assets in a sworn statement and you do not include the diverted, hidden assets. If you do not disclose your assets held by others, you can be cited for contempt of court, perjury, or both. State laws on this question vary. Consult with an attorney in your state who will explain your state's rules to you.
      0 Votes

  • 35x35
    Dec, 2010
    Mark
    Thanks for all the information. My wife and I are going through a foreclosure. The house is in my wifes name only and the deed is not in my name either. It appears that the house will go through foreclosure. My question is my wife has some old unsecured credit card debt. I know they cant garnish her wages for that debt if judgement is reached against her, but can they gain access to our checking account if that account is in my name only and the debts are 100% in her name? Also will this process affect my credit at all since everything is in my wifes name? Thanks for the great info.
    0 Votes

    • 35x35
      Dec, 2010
      I will assume you are a North Carolina resident based on your asking your question on the North Carolina Collection Laws page. If so, North Carolina is not a community property state, which means a spouse's separate debts remain separate. Your separate financial accounts cannot be reached by creditors if, as you mentioned, the mortgage was in your spouse's name only. There is no such thing as a "marital credit score." Your credit can be terrific (or terrible) and that will have no impact at all on your spouse's credit unless you have joint accounts or one of you is an authorized user on the other's.
      0 Votes

    • 35x35
      Sep, 2011
      Sharon
      I'm sick of paying bank fees, so I went to Walmart got one of their cards. I direct deposit my checks, pay my bills and do everything I can do with a checking account except no fees. And no one can attach my money like they can if you're money is in a checking account..
      0 Votes

    • 35x35
      Sep, 2011
      Bill
      Walmart Moneycard accounts are not immune or exempt from account levy, nor are wages paid into a Walmart Moneycard account exempt from wage garnishment if your state allows wage garnishment.
      0 Votes

  • 35x35
    Dec, 2010
    Shelley
    If I owe NC taxes, what is the procedure for them to levy my bank account? DO they have to send me a notice saying they are going to do it? I do not work and have no income other than my husbands.
    1 Votes

    • 35x35
      Dec, 2010
      Bill
      North Carolina allows its tax authority to garnish wages and seize tax refunds. I am unable to find the North Carolina law or administrative procedure the North Carolina tax authority has to levy bank accounts. Consult with a North Carolina lawyer who has experience in tax litigation to learn an answer to your question.
      0 Votes

    • 35x35
      Dec, 2010
      Shelley
      Thank you so much for replying!
      1 Votes

  • 35x35
    Nov, 2010
    Thanks for this great article. I live in NC and CA is threatening to levy my NC bank account for taxes I owed for 1995. Can they do that? Does it matter whether I have a commercial bank account or a credit union?
    0 Votes

    • 35x35
      Nov, 2010
      Bill
      Whether the account is at a commercial bank, credit union, or some other account such as an investment brokerage, is irrelevant. As the above answer states, your financial accounts are available for levy if the creditor has a judgment against you. I use the term "bank account" because that is what most readers have, but as suggested by your question, it is too limiting.
      0 Votes

  • 35x35
    Nov, 2010
    Thank you bill for your knowledge on this subject.
    0 Votes

  • 35x35
    Sep, 2010
    Bill
    Please see the Bills.com resource Credit Card Debt Settlement to learn how to settle a credit card debt. Also read the Bills.com resource Served Summons & Complaint to learn more about the process you are entering. I urge you to seek legal counsel regarding this matter so that you better understand your rights and liabilities under North Carolina law.
    0 Votes

  • 35x35
    Sep, 2010
    JB
    Hey Bill, Great work! I was just served a summons from a mega bank. They want their $2,700 ( I can't blame them ). Unfortunately, I don't have the funds to pay them. They defaulted the credit card account after i was 2 days late in paying. The interest (28%) was killing me and they wouldn't negotiate the rate, so i stopped paying. I live in NC so I know I'm well protected. I co-own a home with my father and have one 2 vehicles with combined value of around $2200. What should I do?
    7 Votes