North Carolina Judgment Law — A Plain-English Guide

In North Carolina, a money judgment entered in Superior Court becomes a lien on the judgment debtor's real property in the county where the judgment is docketed. The lien attaches automatically upon docketing and remains in effect for 10 years from the date of entry.

A properly docketed NC judgment lien can: - Attach to real property the debtor owns in that county - Cloud title and prevent sale or refinance without satisfaction - Survive the debtor's death and attach to estate property - Be enforced through execution, levy, and sheriff's sale procedures

District Court judgments do not automatically create real property liens. A District Court judgment must be transferred to Superior Court and docketed to create a lien. Small claims judgments have separate enforcement procedures.

This is a general overview — consult NC-licensed counsel for your specific judgment file.

An NC money judgment is enforceable for 10 years from the date of entry. This is the most critical timing consideration in NC judgment recovery.

Key points: - The 10-year clock starts on the date the judgment is entered, not the date of the underlying debt - A judgment that has passed the 10-year mark without renewal is generally unenforceable - NC law permits one renewal for an additional 10-year period - Renewal requires filing an action on the judgment before the original 10-year period expires - A renewed judgment creates a new 10-year enforcement period - A judgment that expires without renewal cannot be revived — the enforcement opportunity is permanently lost

If your judgment is approaching the 10-year mark, time is critical. We can review the file and determine whether renewal is still possible.

North Carolina law provides exemptions that protect certain debtor property from execution. Understanding these exemptions is critical to evaluating whether a judgment is collectible.

Key NC exemptions include: - Homestead exemption: Up to $35,000 in equity in a primary residence (or $60,000 if the debtor is 65 or older, or if the property is owned as tenants by the entirety and only one spouse is the judgment debtor) - Personal property exemption: Up to $5,000 in personal property (furniture, appliances, clothing, etc.) - Tenancy by the entirety: Real property owned as tenants by the entirety is generally exempt from claims against only one spouse - Wage garnishment limits: NC follows federal garnishment limits — generally the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage - Certain retirement accounts and benefits are exempt under state and federal law

A debtor with assets that fall within exemption limits may be effectively judgment-proof even if they appear to own property. We evaluate exemption risk as part of every file review.

A judgment from another state may be enforced in North Carolina through a process called domestication or foreign judgment enrollment.

Key points: - The Uniform Enforcement of Foreign Judgments Act (UEFJA) governs domestication in NC - The foreign judgment must be filed with the NC Superior Court in the county where enforcement is sought - The judgment debtor must receive notice of the filing - Once domesticated, the foreign judgment has the same effect as an NC judgment - The domesticated judgment is subject to NC enforcement procedures and limitations - The enforcement period from the original state may apply — not simply a fresh 10-year NC period

Domestication typically requires attorney involvement. We can evaluate whether a foreign judgment is a candidate for NC domestication and refer to qualified NC counsel.

NC law permits the assignment of judgments. An assignment transfers the judgment from the original creditor to the assignee, who then has the right to enforce and collect.

Key points: - The assignment must be in writing and properly executed - The assignment should be filed with the court where the judgment was entered - The assignment should reference the original case number, judgment date, and amount - Notice to the debtor is not always required by statute but is generally recommended - The assignee steps into the shoes of the original judgment creditor - The assignee takes the judgment subject to existing defenses and limitations - Some NC courts may require an assignment to be acknowledged or notarized

All judgment assignments should be reviewed by NC-licensed counsel before execution. Acquire, Inc. does not provide legal forms, legal advice, or representation.

North Carolina requires collection agency licensing for certain debt collection activities under NC General Statutes Chapter 58, Article 70.

Key considerations: - Entities that engage in the collection of debts owed to others generally require a collection agency permit - There are exemptions for attorneys, certain financial institutions, and entities collecting their own debts - The determination of whether a particular activity requires a license depends on the specific facts and applicable law - Acquire, Inc. evaluates licensing requirements on a file-by-file basis - Where a license is required, Acquire, Inc. either obtains the necessary authorization or refers the matter to a licensed attorney or collection agency - We do not engage in collection activities in jurisdictions where we are not authorized

This is a general overview — the specific licensing determination for any given file depends on the judgment type, debtor type, enforcement activity contemplated, and applicable NC and federal law.

A bankruptcy filing can significantly affect judgment enforceability in North Carolina.

Key points: - A Chapter 7 bankruptcy discharge generally eliminates the debtor's personal liability on most civil money judgments - A judgment lien that attached to real property before the bankruptcy filing may survive the discharge in some circumstances - A Chapter 13 bankruptcy may restructure or discharge judgment debt through the repayment plan - Certain judgments — including those based on fraud, willful injury, or certain DWI-related claims — may be nondischargeable - Violating the automatic stay or discharge injunction by attempting to collect a discharged debt can result in sanctions - Always screen for bankruptcy before any enforcement activity

We screen for bankruptcy filings as part of every NC judgment file review. If a bankruptcy filing is identified, we evaluate whether the judgment survived the bankruptcy and whether further review is warranted.

A judgment that has been satisfied or released has no remaining enforceability — even if money is still owed under a separate agreement.

Key points: - A satisfaction of judgment is a formal acknowledgment that the judgment has been paid in full - A partial satisfaction reduces the judgment balance but does not extinguish the judgment - A release may terminate the judgment for reasons other than full payment - Satisfactions and releases are filed with the court - A judgment lien should be canceled of record when the judgment is satisfied - Creditors sometimes file satisfaction without full payment due to settlement, error, or other reasons - A judgment that has been previously assigned may not be owned by the person attempting to enforce it

We search for satisfactions, releases, partial satisfactions, and prior assignments as part of every file review. A judgment that has been satisfied — even if the creditor believes more is owed — is not enforceable.