| North Carolina at a glance | |
|---|---|
| Time limit to sue on card debt | 3 years for contract debts, including credit cards. |
| Deadline to answer a debt lawsuit | 30 days in district and superior court. |
| Wage garnishment | Ordinary consumer creditors generally can't garnish your wages in North Carolina. |
| Where to complain | North Carolina Department of Justice consumer complaint |
How long creditors have to sue
3 years for contract debts, including credit cards. Debt buyers can't sue on debts they know are past the limit and must send written notice at least 30 days before suing. (N.C.G.S. §§ 1-52, 58-70-115)
The time limit for suing is separate from credit reporting: most negative items can stay on your credit report for up to 7 years from when you first fell behind, regardless of state.
If you're sued in North Carolina
Answer deadline: 30 days in district and superior court. Check your own summons for the exact date, because missing it usually means a default judgment.
Court help: NC Courts: lawsuits.
Step-by-step help and common defenses are in our lawsuit and garnishment guide.
What's protected if there's a judgment
Your paycheck
Ordinary consumer creditors generally can't garnish your wages in North Carolina. Exceptions include taxes, student loans, child support and alimony. Earnings from the last 60 days are also protected if needed to support your family. (N.C.G.S. § 1-362; NC Department of Labor)
Your bank account
There's no automatic dollar amount, and exemptions must be claimed or they can be lost. Respond to any exemption notice quickly. (N.C.G.S. § 1C-1601)
Everywhere in the US, Social Security, SSI and VA benefits are generally off-limits to private creditors, and banks must automatically protect two months of those benefits when they're direct-deposited.
Debt collectors in North Carolina
Collection agencies need a permit from the North Carolina Commissioner of Insurance, and the state Debt Collection Act covers other collectors. Federal rules still apply on top of state law. See your rights and free dispute letters.
Debt settlement and debt relief companies
North Carolina makes for-profit debt adjusting, including most fee-based debt settlement, a crime. Licensed North Carolina attorneys and certain nonprofit credit counseling agencies are exempt, with fee limits for the agencies. Under federal law, debt relief companies that sell by phone can't charge fees until they've settled at least one of your debts. Read how settlement works.
Medical debt
Through a state Medicaid program, many participating hospitals have relieved qualifying old medical debt and agreed to limit credit reporting. More in our medical bills guide.
Where to complain or check a company
Sources
- N.C.G.S. § 58-70-115
- NC DOL: garnishments
- N.C.G.S. ch. 14, art. 56 (debt adjusting)
- NCDHHS medical debt relief
Laws and dollar amounts change, and court rules vary by county. This page is general information, not legal advice. For your situation, contact a legal aid office or a North Carolina consumer attorney.