Legal Question in Credit and Debt Law in North Carolina

How can rent money be levied upon? I don't understand. If this was money in a bank account and you were going to use it to pay the rent, it can be seized. Your bank account can be garnished if you are a consumer, although you might be able to exempt these funds depending on amount and their source. For a business, there is no exemption.

Possibly IF a bank lent money to use to purchase a building and had some kind of security interest in the rentals coming in, then in that case and only in that case would the bank's interest trump that of a judgment creditor. However, the bank would have filed a UCC-1 financing statement both with the secretary of state and possibly in the county where the land was located. If the bank did not do so then the bank does not have superior rights to the money.

This is only very general advice. I don't know any of the facts or circumstances here and my answer could change once more is known. If you want to discuss this in confidence, I give free email consults. If interested, you can contact me at [email protected].