How much of my wages can be garnished in North Carolina?

Question

Accepted Answer

North Carolina is one of four states (with TX, PA, SC) that bars most ordinary creditor wage garnishment.

1. Federal Floor

15 U.S.C. § 1673(a) caps garnishment at the lesser of 25% of disposable earnings or amount above 30× federal minimum wage ($217.50/week). States may go stricter.

2. North Carolina Rule

N.C. Gen. Stat. § 1-362 exempts from execution "earnings of the debtor for his personal services, at any time within 60 days next preceding the order, [if] necessary for the use of a family supported wholly or partly by his labor." Combined with N.C. Const. art. X § 1 (homestead/personal property exemption), this effectively blocks ordinary judgment creditors from wage garnishment. Permitted categories under N.C. statute and federal preemption:

State taxes (N.C. Gen. Stat. § 105-242 — Attachment and Garnishment by Secretary of Revenue);

Child support (N.C. Gen. Stat. § 110-136);

Court-ordered restitution;

Federal student loans;

Ambulance services unpaid (N.C. Gen. Stat. § 131E-49);

Overpayments of public assistance.

3. Special Categories

Child/spousal support: Up to 50-65% under 15 U.S.C. § 1673(b) and § 110-136.5 (income withholding).

IRS levy: 26 U.S.C. § 6334.

Federal student loans: 15% under 20 U.S.C. § 1095a.

State tax (NCDOR): 10% of gross wages by default under § 105-242; may be increased.

4. Head-of-Household Exemption

The § 1-362 protection essentially functions as a family-support exemption; the debtor demonstrates wages are necessary for family.

5. Process (Permitted Garnishments)

For state taxes, NCDOR issues a Notice of Garnishment directly without court order under § 105-242(c). For child support, the IV-D agency issues income withholding. Permitted private claims (rare) require judgment then writ of execution.

6. Multiple Garnishments

Support orders have priority; state tax garnishments queue.

7. Employer Anti-Retaliation

15 U.S.C. § 1674 prohibits firing for a single garnishment.

8. Bank Garnishment vs Wage Garnishment

After judgment, creditors may pursue bank accounts via supplemental proceedings under N.C. Gen. Stat. § 1-352. State exemptions (§ 1C-1601) cover up to $5,000 cash for resident with dependents, plus federal benefit protections under 31 C.F.R. Part 212.

This is legal information, not legal advice.