Judgments and Enforcement:
A judgment rendered by the court of North Carolina is enforceable for a period of ten (10) years. (§1-47(a)(1).) Upon the filing of the transcript of a judgment with the clerk, such judgment becomes a lien on the real property of the judgment debtor in the county in which it is situated for a period of ten (10) years from the date of the rendition of the judgment. ( §1-234.) A judgment creditor may seek execution against the non-exempt property of the judgment debtor, against his person and for the delivery of the possession of real or personal property. (§1-303.) A writ of execution, however, may not be issued unless the judgment debtor's exemption has been designated, or the judgment debtor has waived his exemption as provided in G.S. 1C-1601(c). (§1-305(b)). The court or judge may order that all non-exempt property of the judgment debtor be sold upon execution, however, the earnings of the debtor for his personal services, at any time within 60 days next preceding the order, cannot be garnished if he files an affidavit stating that the earnings are necessary for the use of his family which is wholly or partly supported by his labor. (§ 1-362.)
A judgment by confession may be entered without action at any time in accordance with the procedure prescribed under G.C. §1A-1, R.68.1 if such judgment is for money due or for money that may become due or for alimony or child support. A prospective defendant may file with the clerk of the superior court a statement containing the name of the prospective plaintiff, his county of residence, the name of the defendant, his county of residence, and a concise statement showing why he is or may become liable to the plaintiff. A judgment by confession, upon entry, may have the same effect as other judgments except that no judgment by confession may be held as res judicata to any fact in any civil action except in the action on the judgment confessed.
The State of North Carolina generally adopts the Uniform Enforcement of Foreign Judgments Act. (§ 1C-1701, et seq.) Any judgment, decree or order of a court of the United States or of any other court is entitled to full faith and credit in the State of North Carolina. (§ 1C-1702(1).)
A judgment creditor seeking to enforce a foreign judgment may file with the appropriate court, an authenticated copy of the foreign judgment, and an affidavit showing the name and last known post office address of the judgment debtor and the judgment creditor, and stating that the foreign judgment is final, that it is unsatisfied in whole or in part, and setting forth the amount remaining unpaid on the judgment. (§1C-1703(a).) The judgment creditor is required to serve upon the judgment debtor a notice of filing of the foreign judgment and affidavit, attaching copies of these documents thereto, and file a proof of service of the notice in accordance with Rule 4(j) of the Rules of Civil Procedure of North Carolina. The notice must set forth the name and address of the judgment creditor, his attorney if any, the clerk's office in which the foreign judgment is filed, that the judgment attached to the notice has been filed in that office, and that the judgment debtor has 30 days from the date of receipt of the notice to seek relief from the enforcement thereof. The notice must also state that if the judgment is not satisfied within that 30 days period, it will be enforced in the same manner as a judgment of the State of North Carolina. (§1C-1704(a) and (b).) A judgment so filed has the same effect and is subject to the same defenses as a judgment of the State of North Carolina and may be enforced or satisfied in like manner. (§1C-1703(c).)
No execution may issue upon the foreign judgment nor may any other proceeding be taken for its enforcement until the expiration of 30 days from the date upon which notice of filing is served in accordance with Section G.S. 1C-1704. (§1C-1703(b).)
Legal rate: 8% per annum. (§ 24-1.)
Contract Rate: Parties to a loan, purchase money loan, advance, commitment for a loan or forbearance other than a credit card, open-end, or similar loan may contract in writing for the payment of interest not in excess of:
a. if the amount is less than $25,000, the rate announced and published by the Commissioner of Banks based on the latest published noncompetitive rate for U.S. Treasury bills with a six-month maturity as of the fifteenth day of the month plus six percent (6%), rounded upward or downward, as the case may be, to the nearest one-half of one percent (1/2 of 1%) or sixteen percent (16%), whichever is greater. (§24-1.1(c).)
b. if the amount is greater than $25,000, any rate agreed upon by the parties. (§ 24-1.1.)
Judgment rate: 8% per annum or the rate specified in the the contract. (§24-5.)
In general, a debtor may claim exemption of his homestead and certain personal property from attachment or execution or forced sale for the payment of debts. Section 1C-1602 of the North Carolina General Statutes permits the election of the exemptions provided under Article X of the North Carolina Constitution or §1C-1601 of the North Carolina General Statutes.
Under the constitutional exemption, a debtor's homestead and the dwellings and buildings used therewith, which he uses as a residence, up to a value fixed by the General Assembly but not less than $1,000 may be exempt from sale under execution or other final process obtained on any debt, except that no property may be exempt from sale for taxes, or for payment of obligations contracted for its purchase. The debtor may also be entitled to exemption up to five hundred dollars ($500.00) in value in his personal property. (Article X of the N.C. Constitution.)
The statutory exemptions provided under § 1C-1601 of the North Carolina General Statutes include the debtor and his dependent's aggregate interest or value in real property or personal property used as a residence, or in a burial plot, not to exceed $10,000; any property not to exceed $500, one motor vehicle not to exceed $1,500, household furnishings, household goods, wearing apparel, appliances, books, animals, crops, or musical instruments, that are held primarily for the personal, family, or household use up to $3,500 for the debtor plus $750, but not to exceed $3,000 in total, for each dependent, any implements, professional books, or tools of the trade of the debtor or the trade not to exceed $750, life insurance proceeds, professionally prescribed health aids, compensation for personal injury or for death, but such exemption is not exempt from claims for funeral, legal, medical, dental, hospital, and health care charges related to the accident or injury giving rise to the compensation, individual retirement accounts qualified under Section 408(a) of the Internal Revenue Code, individual retirement annuities qualified under Section 408(b) of the Internal Revenue Code, and accounts established as part of a trust described in Section 408(c) of the Internal Revenue Code.
In a bankruptcy proceeding, the exemptions provided in The Bankruptcy Act, 11 U.S.C. § 522(d), are not applicable to residents of the State of North Carolina. (§ 1C-1601(f).)