Legal Question in Credit and Debt Law in North Carolina

It depends. How much equity do you have in your home and car? Or do you own it free and clear? The answer will depend on these questions.

I don't know what you mean by credit agency. A debt collector does not sue unless they are also a junk debt buyer and own the debt. If the junk debt buyer or original creditor is owed money they can take nothing until they havea judgment. Once a judgment is entered, they can serrve you with a notice of rights for you to declare certain property as exempt. That means the sheriff cannot tough exempt property.

You can exempt up to $3,500 of equity in a car and $35,000 equity in a home for judgments that were entered after 1/1/2006.

Usually, creditors do not want your home or car as it costs money to have the sheriff seize and sell your property. They are looking for cash and will levy (freeze) your bank account. Moreover, you can stop this by either filing bankruptcy (worst case scenario) or working out some kind of settlement and paying the debt.

If a lawsuit is in the works, do not think you can just convey away real or other property to someone else in order to defeat the lawsuit. That is called a fraudulent conveyance and the transaction can be undone if the creditor learns about it.

Since you are asking this question you or someone else must be concerned about the issue and you need to do something about it. These situations don't just go away. A judgment lasts for 10 years and can renewed for another 10 years. If you want to file bankruptcy, then I suggest getting a bankruptcy consult as I am not a bankruptcy attorney. If you are serious about resolving your debt outside of litigation, then please contact my office.

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