Wage Garnishment

A mechanism for forcing payment of a debt by withhold a portion of a paycheck. For most debts and judgments, North Carolina law does not permit wage garnishment.

Related Term: 
Judgment
Glossary Terms: 
Trustee
Repossession
Transfer
Deficiency Balance

Frequently Asked Questions

Our frequently asked questions also address Wage Garnishment:

Can my wages be garnished by a creditor in another state?

North Carolina residents are fortunate to not have to routinely deal with wage garnishment. For most ordinary debts, such as credit cards, vehicle repossession deficiency balances, and private medical bills, North Carolina law does not permit wage garnishment as a means to collect the debt. However, North Carolinians sometimes find themselves having their wages garnished on order of another state's courts.

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Blog Posts

We have discussed Wage Garnishment in the following posts on our bankruptcy blog:

Reversing Wages Garnishments and other Seizures in Bankruptcy

Mar 19, 2014

The assistance bankruptcy can offer to a person struggling with having his or her wages garnished is not limited to preventing in the immediate future. It's also possible, in some cases, to get the money back from the creditor who seized it. In considering whether this remedy is available, there are two sets of questions: (1) can the transfer be reversed and (2) does the money go back to the person who filed bankruptcy or does it go to the bankruptcy trustee.

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