What happens if I am unable to pay a small claims court judgment?

If you are unable to pay a small claims court judgment in North Carolina, the court may order a Wage or Bank Account Garnishment. A Wage Garnishment is an order that your employer withhold a certain amount of your salary until the judgment is paid off. This amount is determined based on the amount of the judgment, the amount of money you make, and the amount of money needed to cover your necessities such as food, rent, and utilities. A Bank Account Garnishment is an order that the bank withholds a certain amount of money from your account, to be applied to the judgment, until it is fully paid off. In either case, you should note that the person who won the judgment against you also has the option to pursue a Money Judgment- which allows them to collect the funds that you owe them from any assets or property you may own. Additionally, they may report to the credit bureaus that you have an unpaid debt, which could hurt your credit score. Therefore, if you find yourself unable to pay a small claims court judgment in North Carolina, it is important to contact the court as soon as possible and explain your situation. They may be able to delay the collection process or work out an alternate payment plan. Depending on your situation, it is also a good idea to consult with a lawyer to explore all of your legal options.

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What happens if I am unable to pay a small claims court judgment?

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