In North Carolina, a judgment record is the formal documentation of a court's final ruling to a controversy. It primarily denotes the names and addresses of the winner and loser of the case, the type of judgment rendered, the date the judgment was rendered, and the remedy granted.
Per the North Carolina Public Records Law, judgments are general information and appear on a person's public record. Therefore, like other North Carolina court records, anyone can request to view or copy these documents from the Judicial Branch unless the sought record is protected from disclosure by statute or court rule.
What is a Judgment?
A judgment is a decision of a court that resolves a claim or dispute submitted to it. The judgment specifies who wins and loses a contested case, and what the successful party deserves according to the law. The entry of a judgment signifies the end of a lawsuit.
The North Carolina courts can release different judgments, including a default judgment, summary judgment, consent judgment, and judgment on the pleadings. Although each type is distinct in the procedures used to obtain it, a judgment will either grant monetary, equitable, or declaratory relief to the claimant. Essentially, the judgment will:
- Award money to the claimant as compensation for a loss, damage, or injury,
- Order the adverse party to do or not do something (e.g., return property), or
- Clarify the rights of contesting parties without requiring the performance of an action or granting a dollar amount.
North Carolina Judgment Laws
North Carolina's judgment laws are detailed in the state's General Statutes, particularly under Chapter 1 (Civil Procedure), Chapter 1A (Rules of Civil Procedure), Chapter 1C (Enforcement of Judgments), and Chapter 24 (Interest). These laws direct how judgments are entered, enforced, vacated, and appealed in the state.
What is Judgment Lien?
When the court renders a civil judgment, it typically awards money to the winning side (the judgment creditor). However, the judgment debtor (losing side) may fail or refuse to pay the judgment. As such, the creditor will have to resort to other means to collect the debt. One such method is a judgment lien.
A judgment lien is a legal claim against a debtor's assets. Typically placed without the debtor's consent, it allows the creditor to use the property’s sale to satisfy the judgment.
However, it should be noted that a judgment is not a lien until the creditor records it in the county where the debtor owns - or will own - property. Also, in North Carolina, a judgment lien is attached to real estate alone, i.e., lands, buildings, homes, condominiums. It cannot be placed against personal property.
What is a North Carolina Summary Judgment?
After a lawsuit is filed with a North Carolina court, the plaintiff or defendant may discover that a trial is avoidable because there are no factual disputes requiring a fact-finder (a judge or jury) to resolve. Hence, the party can move for a summary judgment.
A summary judgment is a pre-trial procedure used by the courts to dispose of all or part of a case when there is no adequate claim or defense, and it is evident that one side deserves a judgment in their favor. By requesting a summary judgment, parties can avoid the labor, time, and expense of a full trial and terminate their lawsuit quickly.
What is A Summary Judgment Motion In North Carolina?
A summary judgment motion in North Carolina is a plea to the court to deliver a judgment summarily without a trial. Any party involved in a lawsuit can request a summary judgment under Rule 56 of the state's Rules of Civil Procedure.
If the plaintiff is the moving party, the motion must be filed at any time after thirty days have passed from the onset of the action or after being served with a summary judgment motion by the opposing side. On the other hand, the defendant can move for a summary judgment at any time.
It is the moving party's responsibility to demonstrate that "no genuine or real issue as to any material fact exists" and that the party is entitled to a judgment as a matter of law. Otherwise, the court will reject the motion, and the matter will proceed to trial.
North Carolina Judgment Record Search
Judgments are public records in North Carolina. Therefore, there are several ways to retrieve these records from the courts: one is to search the remote public access system offered by the North Carolina Administrative Office of the Courts (NCAOC).
With NCAOC's Remote Public Access Program, people can review electronic judgment data entered by the civil court clerks in the state's 100 counties. For example, a researcher can view the case parties' names and addresses, the entry date of the judgment, award details, and more.
Generally, parties can retrieve judgment information in real-time (online access) or bulk (extracts). Both methods require that the party submit a completed licensing agreement and the relevant fees to the NCAOC before access can be granted.
Alternatively, an individual can visit the courthouse to search for a judgment record for free using public, self-service terminals, which provide the same information as the Remote Public Access Program.
How Do I Look Up a Judgment In North Carolina?
Anyone interested in looking up a judgment in North Carolina can visit the clerk of court's office. The appropriate office is the one located in the courthouse where the judgment was granted.
Whether it is to find additional information about a judgment or verify judgment amounts, the staff of the clerk's office can help researchers obtain the judgment information they seek. Typically, there is no fee assessed by the clerk to inspect a judgment. However, there are costs associated with reproducing ("copying") a judgment.
What Happens if You Have a Judgment Against You in North Carolina?
A civil judgment determines the rights of the parties to a lawsuit. Hence, anyone who wins a judgment in North Carolina is authorized to take what is owed from the person who lost. This can be money or property.
Altogether, a debtor should satisfy a judgment immediately, as a failure to do so can adversely affect one's life and finances. As the law gives creditors various means to collect a judgment, creditors can choose to recover judgment debts from an unwilling debtor's income, bank account, or property, so long as the property is not exempt from execution or attachment.
How Do I Find Out If I Have Any Judgments Against Me In North Carolina?
The simplest way to find out if one has a judgment against them in North Carolina is to ask the court. Ordinarily, the debtor should receive a notice by mail of the judgment. However, it is quite easy to dispose of mail, and one might change their address, so notification by mail is not always an effective method.
If aware of the court where a judgment might have been entered, the clerk of the court's office can be contacted or visited for more information. The individual can also visit a courthouse to use the self-service terminals or apply for the Remote Public Access Program (RPA). Either method will allow the party to search for active judgments in the 100 North Carolina counties.
Notwithstanding, sometimes, the first that a person might hear about a judgment is after their wages are garnished, assets seized, or bank accounts frozen. While this approach is rather distressing to unaware debtors, it can occur when a debtor is not notified of a pending lawsuit or judgment.
How Long Does A Judgment Stay On Your Record?
Lawsuits are civil proceedings that cannot be erased under North Carolina's expungement laws (as the laws only apply to criminal and arrest records). Therefore, nobody can petition any court to remove a judgment from a court file. However, because civil judgments are public records, they may appear on some background or credit checks.
Previously, it would have been possible to find unsatisfied civil judgments on credit reports, and the existence of such would have damaged a person's credit. However, policies established in the National Consumer Assistance Plan (NCAP) by the three major credit reporting agencies (Equifax, Experian, TransUnion) limit civil judgments from showing up on consumer credit reports if they do not satisfy certain requirements. For example, the agency must update or verify the judgment record at least every 90 days.
Nevertheless, this does not imply that it is illegal for unpaid judgments to be listed on credit reports. After all, the Fair Credit Reporting Act allows judgments that satisfy the public record requirements to appear on a person's credit report, and that record may linger for up to seven years.
How To Enforce A Judgment In North Carolina
In several instances, the party that wins a lawsuit (now the judgment creditor) will not need to take any further action to ensure the satisfaction of their judgment. In others, the party may have to resort to other legal methods to enforce the rights granted to them by the judgment.
Enforcing a judgment is seen as a rather complex affair and the more difficult part of winning a lawsuit. The court cannot force a debtor to satisfy an obligation. As such, the creditor must ensure that the judgment is fulfilled, either personally or with the assistance of a lawyer, collection agency, or court. If requiring the court's interference, the creditor must initiate the relevant proceedings, and this often involves submitting documents to the court.
For instance, if the judgment directed the performance or cessation of an act, the creditor can enforce the judgment through a contempt proceeding. This can result in the debtor paying additional fines or going to jail until the individual complies with the court's final order. On the other hand, if the judgment was monetary, the creditor could obtain a property, wage, or income execution from the court. This allows the creditor to collect the debt from the debtor's non-exempt income or assets. (Note, however, that North Carolina does not permit creditors to garnish wages or public benefits unless in child support cases.)
How To Collect A Judgment In North Carolina
The legal process by which a judgment creditor recovers a debt from a judgment debtor is known as "collecting or enforcing a judgment." In North Carolina, the collection and enforcement (see above) processes are identical. Some people may decide to refer to it as "collecting" rather than "enforcing" a judgment, and some may use the terms interchangeably.
After the close of a lawsuit and once the clerk records the resulting judgment, the creditor can immediately begin collection if no payment arrangement is reached with the debtor. However, a creditor must wait ten days (referred to as the "appeal period") before collecting a small claims judgment.
Collecting a judgment usually entails asking the court to issue a writ of execution that allows the creditor to take and sell the debtor's property to pay the judgment. More information on the collection process can be obtained from the North Carolina Judicial Branch's Lawsuits and Small Claims webpages.
What Happens if a Defendant Does Not Pay a Judgment in North Carolina
Failing or neglecting to pay a judgment in North Carolina is a serious matter, and this inaction will often trigger unpleasant events for a defendant. For one, a sheriff (upon the creditor's motion) can confiscate the defendant's non-exempt property and sell it to recover the owed sum.
In addition, the defendant may lose their freedom for a while and become subject to additional fines if the creditor initiates a civil contempt hearing. The creditor can also get the court to issue an order to recover the reasonable costs spent while collecting the judgment.
Furthermore, the more one waits to fulfill a judgment, the more interest accrues. As such, the defendant will be responsible for the original debt as well as the accumulated interest.
Lastly, it should be remembered that judgments are public records in North Carolina. Therefore, while the judgment may or may not show up on a defendant's credit report, it can still affect their access to financing and other benefits if discovered by a lender.
What Personal Property Can Be Seized in a Judgment in North Carolina?
In North Carolina, a judgment creditor can seize a debtor’s personal property to clear a judgment debt. However, some properties are protected from the enforcement of judgments under state law. Per N.C.G.S. § 1C-1601, these exemptions include:
- Life insurance
- Professionally prescribed health aids owned by the debtor or a dependent
- A motor vehicle valued at up to $3,500
- Tools of the trade, implements, and professional books of the debtor or a dependent that do not exceed $2,000 in value
- Retirement benefits
- Up to $25,000.00 in a college savings plan qualified under section 529 of the Internal Revenue Code
- Alimony, support, separate maintenance, and child support funds
- Personal injury compensation and disability awards
- Individual retirement plans, etc.
The general rule is that if the property is not exempted by law, the creditor can levy it.
North Carolina Judgment Interest Rate
The legal rate of interest in North Carolina is 8% per annum, and no more (N.C.G.S. § 24-1). Most civil judgments bear interest at this rate from the date of entry of judgment. However, there are exceptions. For example, when a contract rate was agreed upon by the litigating parties in a breach of contract suit, the contract rate rather than the legal rate will apply after the judgment's entry (N.C.G.S. § 24-5). Furthermore, in a contract suit where credit was extended for personal, family, household, or agricultural purposes, the rate of interest will be lower than the legal or contract rate.
Interested persons can gauge their accrued interest using the North Carolina Judicial Branch's judgment calculator.
What is a Default Judgment?
The North Carolina courts can issue a default judgment for a plaintiff when a defendant fails to appear or respond to a summons. This judgment is binding upon the attached parties, and its entry is governed by Rule 55, North Carolina Rules of Civil Procedure.
How to File a Motion To Set Aside Default Judgment in North Carolina
When a North Carolina court enters a default judgment, it is final and cannot be revoked unless for a good cause. Therefore, a defendant with a proper excuse for their default (failure to appear or plead) can file a motion to set aside (void) the judgment. Rule 60(b) provides the reasons upon which a judge can set aside a default or default judgment:
- Mistake, surprise, inadvertence, or excusable neglect;
- New evidence which could not have been found in time to request a new trial under Rule 59(b);
- Misrepresentation, fraud, or other misconduct of an opposing side;
- The judgment is void;
- The judgment has been satisfied, discharged, or released, or an earlier judgment upon which it is based has been nullified or otherwise vacated, or it is no longer equitable that the current judgment should have prospective application; or
- Any other reason upon which relief from the execution of a judgment can be granted.
However, it should be noted that if stating grounds (1), (2), or (3), the plaintiff must petition within a year of the entry of judgment. Otherwise, the individual loses the right to set aside the default judgment.
File Motion To Vacate Judgment in North Carolina
Typically, any judgment rendered in North Carolina cannot be reversed by the trial court that made it and must be appealed to a higher court if a party has reasonable cause to seek relief from the judgment. However, there are special instances where a party can move to have the trial court vacate the judgment. These reasons are highlighted in Rule 60(b) and are listed in the previous section.
Whether seeking to vacate a default or regular judgment, an individual must submit a written document to the court, which contains the reason(s) for their request. A lawyer may be best suited to assist with the process in order to avoid mistakes and offer a strong argument.
How To Remove An Transcript Of Judgment In North Carolina
A transcript of judgment is a certified document bearing the summary of a civil judgment. It is issued by the clerk of the court that rendered the judgment per the judgment creditor's request.
Creditors can request the transcript (and pay the $10 fee to obtain it) when a judgment debtor fails to pay a judgment. Afterward, the transcript will be docketed with the clerk of the superior court in any county where the debtor owns real property. This allows the creditor to clear the judgment through the sale of the debtor's property. Another name for a transcript of judgment is a judgment lien.
Judgment liens created in North Carolina expire after ten years from the date of entry of the judgment (N.C.G.S. § 1-234). However, suppose a person pays their debt beforehand. In that case, the individual can ask the creditor to file a satisfaction of judgment with the court and record it with the superior court clerk in every county where the judgment was docketed to release the lien.
How Long Is a Judgment Good For In North Carolina
A North Carolina judgment lasts for ten years from the date the court issued it. However, the law allows creditors to renew the judgment once, for another ten years. It should be noted that renewal is not automatic and must be sought by filing a new lawsuit to recover the unpaid judgment amount before the initial 10-year deadline runs out.
North Carolina Judgment Statute of Limitations Law
The statute of limitations law establishing the period within which judgments can be enforced in North Carolina is outlined in N.C.G.S. § 1-47.
