Generally speaking, and with few exceptions, North Carolina is one of the few states that does not permit wage garnishment as a method to collect debts. The exceptions are State and Federal taxes, child support, and defaulted student loan. Many pro-creditor proponents object to North Carolina’s lack of wage garnishment laws claiming that it makes the State pro-debtor. However, the lack of wage garnishment may lull some debtors into a false sense of security, as an aggressive judgment creditor can use many other methods to keep a judgment alive and ultimately collectible.
North Carolina’s lack of a statutory scheme of wage garnishment is in contrast to most other states, but not all is roses in those other states. In Georgia, a federal judge has halted garnishments, ruling that the state law that governs the process is unconstitutional. The law is flawed because it doesn’t require creditors to advise debtors of exemptions such as Social Security benefits, welfare payments and workers’ compensation, and it doesn’t provide a timely procedure for determining whether funds should have been exempt.