Legal Question in Credit and Debt Law in North Carolina

Debt judgement/ bank levy

Our credit has been good until the past few years. We started our own business, didn't do well, fell behind on bills. We had to let all credit cards and personal loans go just to save our house out of foreclosure. I'm going to court since I cannot pay, they will put a judgement on me. I know that they can't garnish wages in NC for debt, but what about a bank levy, as they told me over the phone?


Asked on 8/09/06, 5:07 pm

1 Answer from Attorneys
Lynn Coleman Attorney-Mediator

Re: Debt judgement/ bank levy

They can levy a bank account, but the money in the account has to be "non exempt". Wages are exempt for 60 days after you earn them. Most IRA's are exempt and college savings plans are exempt with some limitations. If a bank account has money in it that includes money from a job earned within the last 60 days, that portion cannot be taken. There is no similar exemption for earnings from self-employment.

If you have any CD's or accounts with funds that have been on deposit more than 60 days, I recommend you seek specific legal advice. There are other property exemptions by statute. A very general explanation of judgment exemptions can be gleaned from reviewing the official form for declaring exempt property. Go to www.nccourts.org and look for Form AOC-CV-415 using the search features of the web site.

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Answered on 8/10/06, 10:02 pm


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