When a person is deeply into debt with creditors, he may face a number of actions designed to secure the collection of the money that he owes. These tactics can range from the relatively innocuous -- contact by phone and email -- to the aggressive -- the attempted garnishment of the debtor's wages. In North Carolina, creditors are allowed to seek garnishment if they have been awarded damages in a civil case, but only for certain types of debts.
Civil Suits
In order to secure the garnishment of a debtor's wages, a creditor must first file a lawsuit against the debtor in a civil court. Often, creditors will file lawsuits for the breach of the loan contract. If a court awards a party damages in a case, the party is granted a number of new legal options in securing payment of the money. For some types of debt, garnishment is available.
Garnishment
In North Carolina, only garnishments that have been authorized by a judge are legal. Even if a party has been legally awarded damages in a lawsuit, he cannot attempt to garnish the debtor's wages unless a judge has given him permission to do so. In North Carolina, an employer is required to set aside money from a debtor's paycheck if he is presented with a garnishment order. However, orders will be issued only for damages arising from certain types of debts.
Types of Debts
According to the North Carolina Department of Labor, wage garnishment is an option only if the judgment for which a person is seeking payment stems from a particular type of debt. The only kinds of debts that are eligible for garnishment are debts from taxes, student loans, alimony, child support and the use of county ambulances. Judgments stemming from other types of debts or judgments cannot be collected through garnishment.
Considerations
These limitations placed on the collection of debts apply only to debts that have originated in North Carolina and in which the suit has been tried in a North Carolina. If a person is employed by a North Carolina employer and is served a garnishment order that originates from out of state, the order can be applied regardless of what type of debt the civil judgment derived from.
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