Legal Question in Credit and Debt Law in North Carolina

Answer to your questions:

(1) Can creditor take away your disability? No, assuming this is a regular creditor like a credit card company. Social Security or disability payments cannot be garnished by ordinary creditors even with a judgment. However, if you owe money to another federal agency (like the IRS or a Social Security overpayment or a federal student loan) then your Social Security or disability could be garnished. But not for most debts.

(2) Can creditor take your home? No unless it is a debt on which both you and your husband are obligated, both were sued and a judgment was entered. And even in that case, you can each exempt up to $30,000 - $35,000 in equity. If only one of you is sued and you jointly own the house then a creditor cannot force a sale of the home.

(3) Could you go to jaiil? Not unless you commit a criminal offense. Not paying a credit card debt is not a crime. You cannot go jail for that. In some states, there is a procedure where a debtor can be compelled to come to court once a judgment is entered. If you do not obey that summons to appear in court, then yes, you can be arrested and brought before the judge. I have not seen that process used in North Carolina to date for consumer debt. So you will not go to jail.

Please contact me at [email protected]. There are various ways of dealing with debts outside of bankruptcy. I need to know more about your situation. If you email me I can give you some basic pointers.