Amends GS 1-362 to provide that a debtor's earnings for the debtor's personal services that are less than or equal to 30 times the federal minimum hourly wage per work week or 75% of the debtor's net income, whichever is greater, are not subject to attachment or garnishment (was, exempted the debtor's earnings for personal services received at any time within 60 days next preceding the order, from being applied to satisfy the judgment against the debtor when, by affidavit or otherwise, it appears that the earnings are necessary for the use of a family supported wholly or partly by the debtor's labor).
Enacts a new Article 15 to GS Chapter 1C entitled Garnishment of Wages to Enforce Judgments. Provides definitions for the terms (1) disposable earnings - compensation paid or payable for personal services after the deductions required by law are withheld and (2) nonexempt earnings - the portion of the disposable earnings owed to a judgment debtor that are not exempt under GS 1-362, as amended in this act.
Provides that final judgments awarding monetary damages may be enforced by garnishment of wages, except as provided in new GS 1C-1511 (provides that garnishment is not available to enforce deficiency judgments). Provides that there is no exception to garnishment of wages for earnings paid by a city, county, state, or local government authority.
Provides criteria for the issuance of the garnishment order, notice requirements, and service of the order. Presents guidelines for the judgment debtor's filing notice of objection to the garnishment order and for setting a hearing on the objection. Includes additional provisions pertaining to (1) payment to the judgment creditor and fee retention by the employer, (2) the duration of the garnishment order, (3) the priority of garnishment orders when there is more than a single order against a judgment debtor, (4) criteria for applying the payments received, and (5) procedures for handling improper garnishment.
Requires the judgment creditor to deliver a written notice to the employer within five days of satisfaction of the judgment and to notify the clerk of court in writing within 30 days after satisfaction of the judgment.
Makes a conforming change to GS 95-241(a).
Effective October 1, 2011, and applies to civil actions filed on or after that date.