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TN garnishment honored in NC?

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Bill Bixby

Junior Member
What is the name of your state (only U.S. law)? NC

Had a garnishment in TN 4 years ago for credit card dept. Moved to NC for a new job and over 3 years later the garnishment showed up on my paycheck. Was told by my fellow employees that NC doesn't allow garnishment for credit card debt. Is this garnishment allowed and if so can it be overturned in some way? They are taking almost $300/week or 25% of my check which I guess is max allowed by law.
 


Proserpina

Senior Member
What is the name of your state (only U.S. law)? NC

Had a garnishment in TN 4 years ago for credit card dept. Moved to NC for a new job and over 3 years later the garnishment showed up on my paycheck. Was told by my fellow employees that NC doesn't allow garnishment for credit card debt. Is this garnishment allowed and if so can it be overturned in some way? They are taking almost $300/week or 25% of my check which I guess is max allowed by law.
NC is allowed to honor a foreign judgment according to our friends at NOLO.

http://www.nolo.com/legal-encyclopedia/north-carolina-wage-garnishment-law.html

You can read what the DOL says here: http://www.dor.state.nc.us/collect/taxpayer_faq.html

There's also this: http://www.ncleg.net/gascripts/BillLookUp/BillLookUp.pl?Session=2015&BillID=S+632 - although you should note that the bill is not yet law.
 
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justalayman

Senior Member
What is the name of your state (only U.S. law)? NC

Had a garnishment in TN 4 years ago for credit card dept. Moved to NC for a new job and over 3 years later the garnishment showed up on my paycheck. Was told by my fellow employees that NC doesn't allow garnishment for credit card debt. Is this garnishment allowed and if so can it be overturned in some way? They are taking almost $300/week or 25% of my check which I guess is max allowed by law.
from the second link

Under North Carolina law, an employer may be ordered to withhold wages from an employee and pay them to a creditor for the following types of debts: taxes, student loans, child support, alimony, and payment of ambulance services in certain North Carolina counties. However, the courts of North Carolina are not permitted to order an employer to withhold wages for other types of debts such as car loans, credit card debt, and other personal debt items. While the North Carolina courts are not permitted to garnish wages based on these debts, creditors in other states may be able to get an order of garnishment under their own states’ laws. It is not a violation of the North Carolina Wage and Hour Act for an employer to withhold an employee’s wages if required to do so by law. If a court from another state issues a valid order under that state’s laws requiring an employer to withhold a North Carolina employee’s wages for payment of a debt, the employer does not violate the North Carolina Wage and Hour Act by obeying that order.
the only question is: is the $300 25% of net or gross? They are allowed 25% of disposable earnings which would be net pay, not gross. The difference between net and gross pay is already disposed of, you might say.
 

Bill Bixby

Junior Member
the only question is: is the $300 25% of net or gross? They are allowed 25% of disposable earnings which would be net pay, not gross. The difference between net and gross pay is already disposed of, you might say.
Yes its net. Just a big chunk when I just started getting back on my feet. No way to fight it then?
 

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