WAGE GARNISHMENT EXEMPTION (G.S. 1-362 / 15 U.S.C. § 1673): For wage garnishments, 75% of a debtor's disposable earnings are exempt. Only the lesser of (a) 25% of disposable earnings, or (b) the amount by which weekly disposable earnings exceed 30 times the current federal minimum wage ($7.25/hr = $217.50/wk) may be withheld. Both federal and state law apply; the debtor receives the greater protection.
BANK / OTHER GARNISHMENT: Debtors may claim personal property exemptions up to $5,000 ($10,000 for head of household) under G.S. 1-362. Social Security, SSI, veterans benefits, and certain pension funds may be fully exempt under federal law. Garnishees must comply within 20 days of service of the writ.
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OPEN CLAWDE VERSION →GARNISHMENT — KEY POINTS
- Writ served on garnishee (employer or bank) — commands them to withhold and pay over property owed to debtor
- 75% of wages are exempt under G.S. 1-362 and federal law — only 25% may be garnished
- Garnishee must respond (answer) within 20 days of service — G.S. 1-440.21
- Continuing garnishment on wages runs until judgment satisfied or debtor leaves employment
- Bank accounts: one-time levy on funds on deposit at time of service
- Social Security, SSI, veterans benefits, and ERISA pensions generally exempt from garnishment
- Failure of garnishee to answer = default judgment against garnishee — G.S. 1-440.22
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