What is garnishment?

Garnishment is a legal process in North Carolina whereby a creditor can take money from the debtor’s wages or bank account to pay off the debt. It is also sometimes referred to as “attachment” or “wage garnishment.” In order for a creditor to successfully garnish a debtor’s wages the creditor must first obtain a court order. This court order outlines how much of the debtor’s wages must be withheld from his/her paycheck and sent to the creditor in order to pay the debt. Generally, the creditor can take a maximum of 25% of the debtor’s net wages. Garnishment is a very serious legal action as it can affect the debtor’s financial life drastically. Not only may it cause financial strain, it can also damage the debtor’s credit score. The creditor must first sue the debtor, win the lawsuit, and obtain a court order before attempting to garnish the debtor’s wages. Because of the seriousness of garnishment, debtors in North Carolina should strive to pay off their debts as quickly as possible. Negotiating with the creditor or creating a payment plan may be the best option in order to avoid the garnishment process.

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What is garnishment?

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