North Carolina debt statute of limitations

North Carolina limitation periods by type of debt

North Carolina applies a single 3-year period to written and implied contracts alike (§ 1-52(1)).

What the North Carolina statute says

“Within three years an action - (1) Upon a contract, obligation or liability arising out of a contract, express or implied, except those mentioned in the preceding sections or in G.S. 1-53(1).”
N.C. Gen. Stat. § 1-52(1)

“Within three years an action - (1) Upon a contract, obligation or liability arising out of a contract, express or implied, except those mentioned in the preceding sections or in G.S. 1-53(1).”
N.C. Gen. Stat. § 1-52(1)

Does paying restart the clock in North Carolina?

An acknowledgment or promise only counts if it is in a signed writing (N.C. Gen. Stat. § 1-26).

“No acknowledgment or promise is evidence of a new or continuing contract, from which the statutes of limitations run, unless it is contained in some writing signed by the party to be charged thereby; but this section does not alter the effect of any payment of principal or interest.”
N.C. Gen. Stat. § 1-26

North Carolina’s own debt collection law

North Carolina's collection agency law (G.S. Chapter 58, Article 70) bars collection agencies from collecting debts through unfair practices; G.S. 75-50 et seq. separately covers other debt collectors.

“No collection agency shall collect or attempt to collect any debt by use of any unfair practices. Such practices include, but are not limited to, the following:”
N.C. Gen. Stat. § 58-70-115 (Chapter 58, Article 70)

If a creditor wins a judgment in North Carolina

The statute of limitations is a defense to the lawsuit. If the creditor sues within the deadline and wins — or wins by default because nobody answered — different North Carolina rules take over.

How long a judgment lasts

In North Carolina, no execution on a money judgment may be issued more than ten years after the judgment was entered (with narrow exceptions such as homestead liens and alimony).

“However, no execution upon any judgment which requires the payment of money may be issued at any time after ten years from the date of the entry thereof”
N.C. Gen. Stat. § 1-306

Wage garnishment

In North Carolina, a debtor's earnings for personal services within the 60 days before a court order cannot be applied to the judgment when it is shown (for example by the debtor's affidavit) that they are needed to support the debtor's family.

“except that the earnings of the debtor for his personal services, at any time within 60 days next preceding the order, cannot be so applied when it appears, by the debtor's affidavit or otherwise, that these earnings are necessary for the use of a family supported wholly or partly by his labor.”
N.C. Gen. Stat. § 1-362

Small claims court

In North Carolina, a small claim action (heard by a magistrate) is one where the amount in controversy does not exceed $10,000 and the relief sought is mainly money, specific personal property, or summary ejectment.

“a small claim action is a civil action wherein: (1) The amount in controversy, computed in accordance with G.S. 7A-243, does not exceed ten thousand dollars ($10,000)”
N.C. Gen. Stat. § 7A-210(1)

Time-barred debt in North Carolina

In North Carolina, a collection agency that is or acts for a debt buyer may not sue, start arbitration, or otherwise try to collect a debt it knows or should know is time-barred.

“(4) When the collection agency is a debt buyer or is acting on behalf of a debt buyer, bringing suit or initiating an arbitration proceeding against the debtor or otherwise attempting to collect on a debt when the collection agency knows, or reasonably should know, that such collection is barred by the applicable statute of limitations.”
N.C. Gen. Stat. § 58-70-115(4)

What to do next

1. Find the date of your last payment or account activity — that is usually when the clock started.
2. If a collector contacted you in the last 30 days, dispute in writing first: the validation letter generator asks the collector to verify the debt without admitting it.
3. Do not pay or sign anything on an old debt until you know how North Carolina treats a payment (above).
4. If you are sued, respond by the deadline on the summons and raise the statute of limitations as a defense.

Common questions

How long can a debt collector sue me in North Carolina?

3 years for credit-card debt and 3 years on a written contract, under N.C. Gen. Stat. § 1-52. The period usually runs from your last payment or the date of default.

Does a payment restart the clock in North Carolina?

An acknowledgment or promise only counts if it is in a signed writing (N.C. Gen. Stat. § 1-26).

Does North Carolina have its own debt collection law?

North Carolina's collection agency law (G.S. Chapter 58, Article 70) bars collection agencies from collecting debts through unfair practices; G.S. 75-50 et seq. separately covers other debt collectors. (N.C. Gen. Stat. § 58-70-115 (Chapter 58, Article 70)).

How long does a court judgment last in North Carolina?

In North Carolina, no execution on a money judgment may be issued more than ten years after the judgment was entered (with narrow exceptions such as homestead liens and alimony). (N.C. Gen. Stat. § 1-306).

How much of my pay can be garnished in North Carolina?

In North Carolina, a debtor's earnings for personal services within the 60 days before a court order cannot be applied to the judgment when it is shown (for example by the debtor's affidavit) that they are needed to support the debtor's family. (N.C. Gen. Stat. § 1-362).

What if I am sued on an old debt in North Carolina?

Respond by the deadline on the summons. An expired limitations period is a defense you generally have to raise yourself; a court that hears nothing from you can enter a default judgment.