North Carolina Debt Collection Laws

Garnishment limits, exemptions, and consumer protections specific to North Carolina

North Carolina (NC) - At a Glance

State Consumer Protection LawNorth Carolina Debt Collection Act (NCDCA)
SourceN.C. Gen. Stat. ยง 75-50 et seq.
Covers Original Creditors?YES - covers original creditors too
Max Wage Garnishment0% of disposable earnings (federal minimum; may be lower)
Bank Levy Exemption$500 in bank
Homestead Exemption$35,000

Key Protections in North Carolina

  • NCDCA covers original creditors (beyond FDCPA)
  • North Carolina BANS wage garnishment for consumer debts
  • No garnishment except for taxes, student loans, child support
  • Collectors must be licensed in NC
  • Significant consumer-favorable protections

Wage Garnishment in North Carolina

After a court judgment, creditors in North Carolina can garnish up to 0% of your disposable earnings (earnings after legally required deductions). This is the federal cap - North Carolina follows federal law on this limit.

Exempt from garnishment: Federal benefits (Social Security, SSI, VA benefits) cannot be garnished by private creditors regardless of state law.

Note: Some or all wages may be exempt from garnishment in North Carolina. Consult a local attorney.

File a Complaint in North Carolina

If a debt collector violates the FDCPA or North Carolina Debt Collection Act (NCDCA):