In a recent session of the North Carolina General Assembly, House Bill 10 was introduced which may allow an additional means to collect civil judgments. Often, the only way to collect judgement is to try to force an execution (seizure, sale) on the defendent's (debtor's) property, such as real estate or personaly property (vehicles, equipment, etc.). Currently the law allows for certain exemptions from collection like an allowance for real property, vehicles, tools of trade, etc.
In situations where the defendant owes money and does not have anything to collect from, the judgement may be uncollectable. Sometimes after a judgment is entered, the debtor may choose not to purchase any property in his or her name to prevent collection (like leasing property or titling in another's name). Obviously this can be frustrating to persons who are owed money due to the harm caused by another (such as an auto accident).
Currently, even if the defendant is working there is not a means to collect money from thier paychecks. The new law attempts to address this issue. Under proposed the proposed version of N.C. Gen. Stat. s 1-362 one can obtain an order that will direct an employer to garnish an employee's wages as payment towards a judgment. Employers will be allowed to retain a fee for thier compliance with the order of up to $5.00 per pay period which will essentially be lost by the creditor as a convenience fee for the service. Typically, garnishment in North Carolina is often only allowed for payment of child support, taxes, etc.
This new means to garnish wages could have a significant impact to persons who have been hurt, injured and/or damaged by persons who do not have a strong net worth, but who like many of us, hold a job but need to be held accountable for wrongs that they have done. Additionally, this may enable more victims who have legitimate and valid claims to seek compensation for thier loss, and may make it easier to find a lawyer to handle thier case.
If you or anyone has been injured or damaged by someone else, please feel free to give us a call at (919) 934-6187.
by Ron Trimyer
Our website is www.mastschulz.com and you can email me at ron@mastschulz.com
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