Short Answer

Yes—if those draws reflect actual earnings and you can back them up with records. In North Carolina, lost wages or lost earning capacity must be proven with reasonable certainty. For self-employed or irregular earners, use objective documents (bank statements, tax returns, ledgers) and sworn statements to show what you earned before the injury and how it dropped after. Unsupported numbers or capital distributions that are not income can undermine your claim.

Understanding the Problem

You’re asking whether you can count irregular draws as “income” in a North Carolina personal injury demand. The key decision is whether those draws were true earnings and whether you can document them. Here, the accountant could not verify fluctuating income, so the question is how to present lost wages or earning capacity credibly in the demand package to the insurance carrier.

Apply the Law

Under North Carolina law, an injured person may recover lost wages or lost earning capacity if the loss is tied to the injury and proven with reasonable certainty. For traditional employees, this often means pay stubs and employer letters. For owners, contractors, or people with irregular draws, the focus is on objective records (e.g., tax returns, profit-and-loss statements, and bank records) and sworn statements that explain the pattern of earnings. Pre-suit demand letters are not bound by the Rules of Evidence, but building your file around records that would be admissible later (such as business records and medical bills) makes your claim stronger if litigation becomes necessary. If a lawsuit is filed, the forum is typically the Superior Court, and a general three-year limitation period applies to most negligence claims (specific applications can vary).

Key Requirements

• Show they are earnings: Demonstrate that the draws were compensation for work, not loans, capital returns, or one-off transfers.
• Tie records to time lost: Use bank statements, ledgers, and tax filings to show a stable pre-injury pattern and the post-injury drop.
• Use admissible-style proof: Plan to rely on business records and sworn statements that could be used later in court if needed.
• Distinguish profits vs. pay: Claim lost earnings or earning capacity, not speculative business profits unrelated to your labor.
• Corroborate medical linkage: Include medical bills and provider summaries that connect treatment and work restrictions to the time away.

What the Statutes Say

• N.C. Gen. Stat. § 8-58.1 (Medical bills as prima facie evidence) - Allows medical bills to serve as prima facie evidence of reasonableness and necessity.
• N.C. Gen. Stat. § 8-44.1 (Medical records and reports) - Permits certain provider reports to be used as evidence under specified conditions.
• N.C. Gen. Stat. § 8C-1, Rule 803(6) (Business records) - Recognizes the business-records exception to hearsay for regularly kept records like payroll, ledgers, and bank statements.

Analysis

Apply the Rule to the Facts: Because your income was paid as irregular payroll withdrawals, you can include those draws as lost income if they were compensation for your work and you can document them. The accountant’s inability to verify fluctuations means you should anchor the demand with objective records (tax returns, bank statements, and a year-over-year profit-and-loss) and sworn statements explaining seasonality and how the injury reduced your ability to work. Your pre-demand verification can summarize treatment and costs and include provider notes to connect the work loss to the injury.

Process & Timing

1. Who files: The injured person (through counsel). Where: Send the demand package to the insurance claims representative. What: Include a sworn wage/income statement, bank statements, tax returns (e.g., Schedule C/K-1 as applicable), a simple pre-demand verification, medical bills, and medical summaries. When: After treatment stabilizes or work restrictions are clear; leave time to negotiate before the general three-year filing window closes.
2. Expect 30–45 days for an insurer to review substantial documentation; follow up in writing and supplement with any additional records the adjuster requests.
3. If negotiations stall, prepare to file suit in Superior Court; your demand packet becomes the foundation for discovery and proof of damages.

Exceptions & Pitfalls

• Draws that were loans, capital returns, or shareholder distributions are not wage income—label and document them accurately.
• Averaging without records invites pushback; use concrete documents and a sworn explanation for seasonality or project-based spikes.
• Double-counting both gross receipts and draws is a common mistake; focus on net earnings attributable to your labor.
• If using affidavits or verifications, have them notarized correctly; emergency video notarization authority has expired, so use standard North Carolina notarization.
• Do not omit medical linkage; include provider notes supporting work restrictions to connect wage loss to the injury.

Conclusion

You can include irregular draws as income in a North Carolina demand letter if they reflect actual compensation for your work and you can prove the loss with records. Build the claim with bank statements, tax returns, ledgers, and a sworn wage/income statement, and connect the loss to documented medical restrictions. Next step: assemble those records and prepare a notarized income verification before sending your demand, keeping the general three‑year filing window in mind.

Talk to a Personal Injury Attorney

If you're dealing with irregular income and need to prove lost wages after an injury, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at 919-341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.