North Carolina Fair Debt Consumer Guide
Learn about your legal rights when facing Debt Collector Problems. Research the applicable laws that could help protect you when a debt collector is attempting to seize your assets, garnish your wages or continue collection of a debt that is outside North Carolina's Statutes Of Limitations. North Carolina phone recording laws could assist you in gathering proof of the debt collector's illegal tactics; find out whether recording your debt collector's phone conversation is permitted in your state.
The North Carolina Fair Debt Collection Consumer Practices Guide summarizes North Carolina's laws on wage garnishment, property and asset seizures and state statutes of limitations on debt collection and could provide the ammunition you need to stop or limit creditors and collectors from harassing you, garnishing your wages or bank accounts, and from seizing your property through liens, thus limiting your overall financial exposure.
This Guide does not include information concerning the FTC's Credit Practices Rule, state consumer protection laws or information regarding exemption provisions found in laws other than the state's general exemption laws and is not intended to substitute for the advice of an attorney.
North Carolina Consumer Debt Exemption Laws
If a debt collector threatens to seize your property or your assets, you could be protected under North Carolina’s Consumer Debt Exemption Laws. Read the summarized information below to learn how to protect what you own and what you cannot protect from seizure. You could significantly strengthen your bargaining position with debt collectors by knowing your rights under North Carolina Debt Exemption Law!
North Carolina Statutes
The state of North Carolina opted out of federal bankruptcy exemptions – North
Carolina General Statute § lC-1601(f).
Wages: North Carolina General Statute § 1-362.
Homestead: North Carolina Constitution article X, § 2; North Carolina General Statute §§ lC1601(a)(1), (e).
Tangible personal property: North Carolina General Statutes § 1C-1601.
Benefits, retirement plans, insurance, judgments, and other intangibles:
North Carolina General Statute § lC-I601
North Carolina Debt Statutes of Limitation
Your debt may have expired under North Carolina’s Statutes of Limitations, and may be considered uncollectible. Read the summary below to see the length of time certain types of debt can continue to be collected under the North Carolina Debt Statutes of Limitations, don’t let a collector threaten to take you to court over an expired debt.
North Carolina Debt Statutes of Limitation
Express or implied contract, not under seal: 3 years.
Contract and sale of personal property under seal: 10 years.
Open account: 3 years, NOTE: Each payment renews the SoL on all items purchased within the 3 years prior that payment. If no payment is made, the SoL runs from date of each individual charge. Contracts: From date of breach or default, unless waived or performance under the contract is continued.
Judgments: 10 years
Partial payment BEFORE the SoL expires renews the SoL from date of payment.
Payment AFTER Statute of Limitations expires renews ONLY if, at time of payment, circumstances infer the debtor recognized obligation to pay. Partial payment on open account restarts Statute of Limitations on purchases made within 3 years of payment date, if acknowledgment can be inferred, starts the statute anew as to the full obligation acknowledged, even if all of the charges were not made within the last three years. NC Continued...
Partial payment by one debtor does not renew the statute of limitations as against any a co-debtor unless that co-debtor agreed to, authorized or ratified the partial payment.
Partial payments do NOT have any affect the ten-year limitation on enforcing or renewing judgments.
Bankruptcy, Death or Disability: Filing of a bankruptcy tolls the statute of limitations for the enforcement of contracts and judgments.
The death, minority, disability or incompetence of a debtor also tolls the limitation period until such time as a personal representative of the estate or a guardian of the incompetent or minor is appointed.
North Carolina Wage Garnishment Procedural Requirements
Wage garnishment doesn’t mean a debt collector or creditor is entitled to take all your money. Under North Carolina’s Wage Garnishment Laws, there are limits and protections on just how much can be taken from your paycheck.
Read the summary below to learn your garnishment rights under North Carolina law.
North Carolina Wage Garnishment Procedural Requirements
After the issuing or return of an execution against property of the judgment debtor and upon affidavit that any person or corporation has property of said judgment debtor, or is indebted to him in an amount exceeding ten dollars, the court or judge may, by order, require such person or corporation, or any officer or members thereof, to appear at a specific time and place, and answer concerning the same. The court or judge may also, in its or his discretion, require notice of the proceeding to be given to any party to the action, in such manner as seems proper. N.C. Gen. Statute. _ 1360. The court or judge may, by order, forbid a transfer or other disposition of, or any interference with, the property of the judgment debtor not exempt from execution. N.C. Gen. Statute. _ 1358. After the issuing of an execution against property, all persons indebted to the judgment debtor may pay to the sheriff the amount of their debt, or as much thereof as is necessary to satisfy the execution; and the sheriff's receipt is a sufficient discharge for the amount paid. N.C. Gen. Statute. _ 1359.
Interest Rate at which Judgments Accrue The legal rate of interest shall be eight percent per annum. N.C. Gen. Statute. _ 241. In an action for breach of contract, if the parties have agreed in the contract that the contract rate shall apply after judgment then interest on an award in a contract shall be at the contract rate after judgment, otherwise it shall be at the legal rate. Interest on an award in an action other than contract shall be at the legal rate. N.C. Gen. Statute. _ 245 (1986).
North Carolina (Debt Collector) Call Recording Law
Under North Carolina State and Federal Call Recording Laws, you could record the actual phone conversation with a debt collector in your efforts to stop debt collectors from calling! North Carolina is a one party consent state, meaning only the permission of one person on the call is necessary to record. YOU ALONE can be considered the one party to give consent, thus you do not need a debt collectors permission to record the phone conversation in the state of North Carolina.
Research and find additional information about Federal Call Recording Laws and learn what call recording procedures are legal in other states.
