Legal Question in Credit and Debt Law in North Carolina

I expect a judgement against me. I am on disability social security and government disability pension which is exempt. Question is I have about $6,000 of stock I bought with government disability pension that does into bank through direct deposit and then automatic payment for stock through that bank account. Showing that, is stock protected from a judgement, would also adding my childs name on stock protect it, or in trust? Want stock for future education expense for child. Any suggestrions to protect it?


Asked on 4/24/12, 1:40 pm

1 Answer from Attorneys
Rachel Hunter

Stock would not be protected unless you used your exemption - you can exempt up to $5,000 of personal property and yu get an extra "wild card" exemption of $5,000. However, I do not know what other assets you have.

Any transfer now to avoid the claims of creditors will probably be a fraudulent conveyance (depending on your debts and assets) but you could try putting the account in the name of your spouse. Putting the stock in a trust will not protect it. Revocable living trusts do not protect against the claims of creditors.

The best method is to either file banrkrutpcy and get the debt discharged (assuming the debt would be dischargeable) or use your exemptions. Start a 529 plan for the child and contribute to that.

However, you should sit down with an attorney. Trying to advise you in this forum is not possible as any attorney would want to know what the lawsuit is about and what assets you have as well as income.

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Answered on 4/24/12, 6:24 pm


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