Legal Question in Business Law in North Carolina

Judgment Enforcement

I have an unincorporated business (and me personally as owner of business) that is being sued. If I lose the lawsuit, can judgment be enforced on joint property and could I possibly lose my home? What happens to money set aside for my children's education? Thank you.


Asked on 10/19/01, 12:01 am

1 Answer from Attorneys
John Kirby Law Offices of John M. Kirby

Re: Judgment Enforcement

That question really needs more detail. In general, however, your business sounds like a "sole proprietorship," in which case your personal assets are at risk. A house owned by you and your spouse would be protected (as a "tenancy by the entirety"). Other property in your name, or in your joint name, would be subject to collection, except for some statutory "exemptions." As for child's college money, that depends on how it's set up. If it's really in the child's name (e.g. you cannot get it back), then it's probably safe. Also, some IRA's are protected. You may want to consult a lawyer (to defend the suit as well!).

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Answered on 12/13/01, 12:00 am


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