From Lease to Lawsuit:
How North Carolina Property Owners Can Legally Get Paid Through
the Power of a Money Judgment

By: Lindsey Abboushi – North Carolina Licensed Attorney with Brownlee Whitlow & Praet, PLLC

When a lessee breaches their lease (whether commercial or residential) property owners are often left navigating a costly and frustrating aftermath. Unpaid rent, abandoned premises, property damage, and lease violations can cause significant financial disruption.

While most property owners focus on how to collect, fewer understand the critical first step: obtaining a court-ordered money judgment to protect their right to recover.

Our firm assists property owners with the legal process of obtaining money judgments. We do not engage in collection efforts, but we help ensure that your case is thoroughly prepared, procedurally sound, and strategically positioned to support future enforcement efforts.

What Is a Money Judgment (and Why Does It Matter)?

A money judgment is a final order issued by a court stating that one party owes a specific amount of money to another. It’s more than just a piece of paper; it’s a legally enforceable declaration that you (the creditor) are entitled to collect a specific sum from the debtor.

In Practice:

• • • Typically results from a successful civil lawsuit
    • Confirms the debt’s validity and quantifies the amount owed
    • Becomes public record and can create a judgment lien on real property owned by the debtor (in the county) where the judgment is recorded
    • In North Carolina, a money judgment is enforceable for 10 years, and can be renewed before expiration for an additional 10 years

Example: A property owner sues a lessee for unpaid rent. The court awards the property owner a $20,000 money judgment. This judgment gives the property owner the legal right to collect that money.

What You Can Do With a Money Judgment:

• • • File a writ of execution which authorizes the sheriff to seize and sell the debtor’s non-exempt property to satisfy the judgment
    • Record a lien against real estate owned by the debtor (if they own any)
    • Collect through means of a collections agency
    • Leverage it in settlement negotiations or renewals
      
      
      

When to Seek a Money Judgment: Common Lease Defaults

Commercial Leases:

• • • Unpaid base rent or CAM charges
    • Premature termination
    • Abandonment
    • Breach of exclusivity or use provisions
    • Default under a lease guaranty

Residential Leases:

• • • Non-payment of rent
    • Property damage beyond the security deposit
    • Lease violations (unauthorized occupants, illegal activity)
    • Early move-out with unpaid remaining term

In each of these scenarios, property owners may have clear contractual rights to damages, but that right should be converted into a legally recognized money judgment.

Our Role: Legal Services for Property Owners Only

We don’t chase lessees. We don’t knock on doors or freeze bank accounts. What we do is litigate your case in court to protect your right to collect.

How we help:

• • • Review your lease, ledger, final account statement, damages, and assess your claim
    • Draft and send a demand letter to provoke payment or negotiation
    • File and litigate your lawsuit in the proper court
    • Represent you through motions, hearings, or trial
    • Secure a money judgment enforceable for 10+ years

Whether you’re a small residential property owner or manage a portfolio of commercial properties, our team builds the legal pathway for you to get paid.

What Is a Collection Action?

A collection action is the set of efforts taken to recover the money owed, this can happen before or after a money judgment is obtained. Unfortunately, North Carolina is one of four states that do not allow wage garnishment for private debts. As a result, many collections professionals work around that limitation by levying funds from the debtor’s bank account.

Why a Money Judgment Should Come Before a Collection Action

A money judgment ensures your legal right to collect. A collection action focuses on the steps to recover the money that is owed, handled by collections professionals. They do go hand in hand, but a money judgment protects your legal right to collect the money owed for a specific period of time.

Another crucial difference is the timing. If the statute of limitations is up on your right to collect, and a money judgment has not been entered, your legal right to collect is gone. After that time is up, any attempt to collect can be considered an unfair debt collection practice under North Carolina statute §75 and can be prosecuted.

Why a Money Judgment Matters (Even if You Don’t Collect Immediately)

Many property owners hesitate to pursue legal action, particularly if the lessee has disappeared or appears judgment-proof. Yet obtaining a money judgment serves several long-term strategic purposes:

• • • Preserves your legal claim before the statute of limitations expires
    • Creates leverage for future settlements or lease negotiations
    • Establishes a lien on real property the debtor may own or acquire
    • Prepares you for collections if the lessee resurfaces or returns to financial solvency
    • Supports guarantor liability enforcement (especially for commercial leases)

A money judgment turns a broken lease into a legally enforceable debt, and gives you tools to act, either now or in the future.

Final Takeaways

In North Carolina, money judgments are the legal win, and a collection action is the work that gets you paid. Know the difference and understand that timing is everything.

If you’re a property owner, lender, or investor looking to recover what you’re owed, knowing next steps and who to call can save you time, money, and headaches.

     
*The information provided in this article does not, and is not intended to, constitute legal advice; instead, all information in this article is for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information. Viewers of this material should contact their attorney to obtain advice with respect to any particular legal matter. No viewer of this material should act or refrain from acting on the basis of information in this presentation without first seeking legal advice from counsel in the relevant jurisdiction. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.  Use of, and access to, this article does not create an attorney-client relationship between the reader and Brownlee Whitlow & Praet, PLLC or any contributing law firms. All liability with respect to actions taken or not taken based on the contents of this article are hereby expressly disclaimed.