What Happens If You Default on a Credit Card in North Carolina?

by Jane Meggitt ; Updated July 27, 2017
If you're sued over a credit card default in North Carolina, consider contacting an attorney.

Defaulting on a credit card wreaks havoc with your credit score and could land you in bankruptcy court, but North Carolina offers more protection than most areas. That's because North Carolina is one of only a few states that doesn't permit wage garnishment for credit card debt. In addition, under state law you can't be sued for a credit card debt if it's been four years or more since you last made a payment.

Statute of Limitations

If your credit card default falls within the North Carolina statute of limitations -- less than four years -- the creditor can sue you. If granted a judgment lien, the credit card company might place a lien on your real estate, motor vehicles or other personal property. The lien stays with the property when you sell or refinance the property, or otherwise attempt to transfer the title. At that point, the lien holder can collect the money owed from the judgment -- including accrued interest.

North Carolina Wage Garnishment

Wage garnishment means that an unpaid creditor has sued in court and received a judgment against the debtor. The debtor's employee is then directed to remove a percentage of the debtor's take-home pay and send it directly to the creditor. In North Carolina, that only applies to alimony, child support, taxes, student loan debt and a few other categories -- not credit cards.

About the Author

Jane Meggitt has been a writer for more than 20 years. In addition to reporting for a major newspaper chain, she has been published in "Horse News," "Suburban Classic," "Hoof Beats," "Equine Journal" and other publications. She has a Bachelor of Arts in English from New York University and an Associate of Arts from the American Academy of Dramatics Arts, New York City.

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