Sometimes, when a debtor and the person seeking collection of the debt are in dispute about how much money is owed or when the money should be paid, they may seek out an arbitrator. The arbitrator's job is to mediate the conflict between the two parties, seeking a mutually agreeable arrangement. In North Carolina, the arbitrator cannot garnish the debtor's wages himself, as the debt is not owed to him, and he is a neutral party in the dispute.
Arbitration
When a debt goes to arbitration in North Carolina, it means that two parties in the dispute have agreed to seek the counsel of an outside party. The party is intended to be unbiased and is authorized to help broker a solution to the conflict outside of the court system.
Garnishment
When a debt is owed to a party in North Carolina, the party has the right to seek payment by suing the debtor, as long as the statute of limitations on the debt has not expired. When this happens, a judge will hear the merits of the case and decide whether the debtor is indeed liable for the debt. Only if the judge finds the debtor liable, and the debtor continues to refuse to pay the money owed according to the judge's orders, can the judge order the debtor's wages garnished.
Civil Judgment
The only person who can seek a civil judgment in North Carolina against a debtor is the person to whom the debtor owes money, or someone acting in her stead. As with most civil cases, only an interested party can sue in a civil lawsuit. As an arbitrator is merely hired to advise the two parties, he has no legal interest in the case, and therefore cannot sue the debtor.
Considerations
While an arbitrator cannot legally garnish a person's wages -- all garnishments attempted without the permission of a judge are illegal -- she can advise the person seeking collection of the debt to petition a judge for an order of garnishment. In addition, the arbitrator can suggest that the debtor put aside a portion of his salary to repay the creditor, but she can't make him do it.
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