Legal Question in Credit and Debt Law in North Carolina

Generally, you have to make whatever deals you can and pay the IRS. I am not a tax attorney and I don't know how much you owe or what kind of taxes you owe. You might want to talk to a tax attorney about that.

If you have judgments already, then the credit cards have been delinquent for awhile. How much do you owe? It might make sense for you to file bankruptcy. I suggest that you get a consult with a bankruptcy attorney. Many attorneys give free consults and just because you have one does not mean that you need to file. Learn about a chapter 7 and chapter 13 bankruptcy, what kinds of debts are dischargeable (some tax debts are not), whether you qualify for the chapter 7 and can keep your assets, and the consequences.

If bankruptcy is not an option, judgments last for 10 years and can be renewed for another 10 years. They earn interest at a rate of 8%. There is no wage garnishment in NC for ordinary credit card debt. If the debts are in your name alone, then they cannot touch your spouse's possessions for a credit card debt. Depending on what assets you have and how they are titled, and oyour overall circumstances, it might make sense to get that tax debt resolved first. Once you do, save up and you can resolve the judgments, one at a time.

Beyond getting the judgment, the creditor will try and collect in a process called execution. They will look to seize and sell assets (cars, land, electronics) that you own free and clear or in which you have a lot of equity. They really don't want your stuff - they want money and since there is no wage garnishment, the obvious source is your bank account. If you have an account with someone else, get your name off of it. You can still have any paychecks direct deposited into your spouse's account, but you cannot have a bank account in your own name. Or you can keep a very small amount in there (less than $100) in case the creditor ever tries to seize your account.

Again, I don't know what kinds of assets you have, if you have exempt income or your circumstances. This is general advice and my advice could change once I know the facts.

This is a general message board. If you want to discuss your situation in detail, I give free email consults. I also assist clients in resolving debts and protecting assets from execution for a reasonable fee. Please contact me at [email protected] if interested.