Legal Question in Credit and Debt Law in North Carolina

If your bank has done this it means that there is a judgment against you for the amount of deficiency owed on the car loan. You were sued and ignored it. You were served with exemptions which you also ignored. Now the creditor has levied your bank account.

Frozen funds are going to be given to the creditor unless you receive something like Social Security, retirement/unemployment or something like this. You will not get the money back otherwise.

If you truly never received notice of the lawsuit or exemptions, you may be able to get the judgment opened, but there eare time limits and you do not indicate when the judgment was entered. What I would do is go to the courthouse in the county where you live and see if you can get information about the lawsuit. Find out when the judgment was entered, and get a copy of the summons and complaint and return of service. Have a lawyer look it over to see if you can challenge the judgment in any way. If not, how much is oweed? Do you have the means to resolve (pay) the remaining balance? If not, dol you have the funds to settle (at least 50% of the balance as of now on the judgment, minus whatever was seized from your bank account)? Debts can always be settled but it depends on the law firm and the creditor and your circumstances.

If you cannot pay the judgment, it depends on your circumstances. If you owe a lot of money (over $10,000), it might make sense to file bankruptcy. If os, then maybe you need to see a bankruptcy lawyer.

I would close your bank bank account and not put any more money in there if you do not plan on resolivng the judgment through litigation, bankruptcy or settling. Otherwise, the bank will freeze those funds and pay those to the creditor until the judgment is fully paid. You will have to make other arrangements - stop any direct deposits immediately. Look to an online or other untraceable bank account.

Co-signing is always a bad deal and never ends well for the party who co-signs. The fact that the person you co-signed for needed a co-signer tells me that they could not get credit either due to a bad credit history or no credit history. While that person needs to step up to the plate and pay, the chances are good that they are judgment proof or have already filed bankruptcy and they are not likely to help out here.

Let this be a warning to your fellow consumers - NEVER EVER CO-SIGN!