A Great Method for the Recovery of Debts

What We Do...

We assist North Carolina local governments with the recovery of any delinquent debts by offsetting debtors' North Carolina state tax refunds and Education lottery winnings. As long as the debt is $50 or more and has been delinquent 60 days the process can begin. There is NO COST to participate with the NC Debt Setoff Clearinghouse. Since the debtor pays all fees, there is only the effort and cost of mailing the required notification letters.

Upcoming Events:

Who is Eligible to Participate?

Counties
Municipalities

What other types of local governments are eligible to participate?

Joint Regional Agencies (created under Article 20 of Chapter 160A of the General Statutes)

Metropolitan Sewerage Districts (created under Article 5 of Chapter 162A of the General Statutes)

Public Health Authorities (created under Part 1B of Article 2 of Chapter 130A of the General Statutes)

Sanitary Districts (created under Part 2 of Article 2 of Chapter 130A of the General Statutes)

Water and Sewer Authorities (created under Article 1 of Chapter 162A of the General Statutes)

Housing Authorities (created under Chapter 157 of the General Statutes (debt must be final judgment in favor of Housing Authority) - effective October 1, 2011

Regional Solid Waste Management Authorities (created under Article 22 of Chapter 153A of the General Statutes - effective January 1, 2013

Are you eligible and ready to begin?

2025 Participation Form (allows for participation until December 31, 2025)

Not sure how to get started? New participants Checklist

Are you a debtor that has been setoff?

First, call (877) 843-0330 for the automated 24 hours per day, 7 days per week information line.

It lists all local governments that have submitted debts against your Social Security Number (SSN) or Individual Tax Identification Number (ITIN). We understand your concerns about a North Carolina state income tax refund and/or an Education Lottery winning you were expecting. Click here for information and explanations.

NOTE: the NC Local Government Debt Setoff DOES NOT provide social security numbers to the local governments that participate. In addition, the Clearinghouse does not particpate in any wage garnishment of paychecks or bank accounts.

2024 Training Workshops - Attendee and Virtual Workshops Completed

Date: October 2024

Six attendee workshops for 2024 have been completed. All sessions are 2 1/2 hours (9:30 a.m. - noon). There is no longer a separate morning session for new attendees. These sessions do NOT cover the client software. There was a separate virtual session on November 13 that covers the same presentation.

Locations:

Waynesville: Tuesday, Oct. 15 - CANCELLED
Newton: Wednesday, Oct. 16
Asheboro: Thursday, Oct. 17
Washington: Tuesday, Oct. 29
Wilmington: Wednesday, Oct. 30
Raleigh: Thursday, Oct. 31

Agenda and handouts were made available by Monday, October 7.

There was one virtual (Zoom) workshop exactly the same topics as the six attendee workshops:

Counties and Agencies, Municipalities and Housing Authorities: November 6 (Wednesday) 9:30 - 11:30 a.m.

There was also ONE virtual session entirely on the client software.

All Counties, Agencies, Municipalities and Housing Authorities: November 13 (Wednesday) 10:00 - 11:30 a.m.)