Jacksonville, NC asked in Collections for North Carolina

Q: What can you do if the defendant fails to comply with the courts judgment of a settlement

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1 Lawyer Answer

A: Is the defendant a person/individual or a business corporation/LLC or some other type of organization?

If the defendant is a person, to collect on any judgment for money, you would first have to serve the judgment debtor with a notice of rights to have exemptions designated/motion to claim exempt property. The debtor has 20 days to fill the papers out and file. The sheriff can then try and execute on the judgment. There is no wage garnishment in NC for most types of money debts.

If the debtor is a corporation or business entity, it does not get exemptions. In such case, see a collections attorney regarding your options.

You also do not indicate how much the judgment was for, if it was monetary. If the judgment is under $1000, the sheriff may not want to execute.

Judgments never go away. They last forever and earn interest at a rate of 8% per year, but the interest accrues daily. They remain in force for 10 years and can be renewed for another 10 years. Judgments are reported on a debtor's credit report and will preclude a debtor from obtaining a mortgage or refinancing property. If the debtor rents, the existence of a judgment may hamper a debtor's ability to find somewhere to live. And some employers use it to screen job applicants or to issue security clearances. These factors may all induce the debtor to pay at some point.

If this was some type of court order to do or not do something rather than pay money, the defendant can be held in contempt for violating or failing to comply with the court order. In such case, a contempt petition would have to be filed. The court has ways to compel compliance including putting a person in jail. Again, see an attorney if this may be an issue.

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