CarolinaBlueEyes Posted March 24, 2007 Report Share Posted March 24, 2007 Hi gang.. I need to explain this to someone in simple terms. Your response would be great.Mr and Mrs smith are married. Mr smith is sued and ends up with a judgement. the smiths live in a community property state (NC), however they can not put a lien on the smith home since Mrs smith was not part of the lawsuit (NC law). Can the creditor freeze or garnish Mrs smiths bank account. There is NO wage garnishment in NC (except taxes).I know they can freeze a joint account or any account with Mr smiths name, but I am trying to convince someone they can NOT touch Mrs smiths account if she is not named in the suit. help would be great.. thanks Link to comment Share on other sites More sharing options...
nascar Posted March 24, 2007 Report Share Posted March 24, 2007 You'll find the answers to your questions in N.C. Gen. Stat. 1-440 et. al.Of course, only the defendant is subject to attachment. But in the case of joint holdkings, such as bank accounts, a third party holding interest in an attached asset would need to file for release of attachment. It's just paperwork. Link to comment Share on other sites More sharing options...
CarolinaBlueEyes Posted March 24, 2007 Author Report Share Posted March 24, 2007 You'll find the answers to your questions in N.C. Gen. Stat. 1-440 et. al.Of course, only the defendant is subject to attachment. But in the case of joint holdkings, such as bank accounts, a third party holding interest in an attached asset would need to file for release of attachment. It's just paperwork.thanks.. i just read 440.. and I learned alot .. 43 address this to a degree but I want to make sure I get it.. so for them NOT to touch the smiths house., Mrs smith needs to file paperwork? Or was I told correctly that they can not touch that.They can freeze a joint account but Mrs smith private accounts do not need paperwork.. those are okay.. only the paperwork for the joint property has to be done. do you mind telling me where that is done, if it requires a lawyer? Link to comment Share on other sites More sharing options...
LadynRed Posted March 24, 2007 Report Share Posted March 24, 2007 BIG error - NC is NOT a community property state !! Link to comment Share on other sites More sharing options...
CarolinaBlueEyes Posted March 25, 2007 Author Report Share Posted March 25, 2007 BIG error - NC is NOT a community property state !!really.. I thought it was.. maybe I am thinking of divorce laws... thanks for claryfying that... I think I got confused with Equitable Distribution .. again thanks!so then Mrs smiths account is safe? if they own the house together though mrs smith would still have to file paperwork so they can't lien it Link to comment Share on other sites More sharing options...
LadynRed Posted March 25, 2007 Report Share Posted March 25, 2007 Right, they cannot touch Mrs. Smith's individual accounts. If they own the house together, they would have to get HIS name off the deed with a quit-claim. However that could be seen as a fraudulent transfer and reversed by the courts if challenged. Link to comment Share on other sites More sharing options...
CarolinaBlueEyes Posted March 25, 2007 Author Report Share Posted March 25, 2007 Right, they cannot touch Mrs. Smith's individual accounts. If they own the house together, they would have to get HIS name off the deed with a quit-claim. However that could be seen as a fraudulent transfer and reversed by the courts if challenged.I was lead to believe that they couldnt touch the house in NC if both names were on it and only one party was sued. joint accounts were a different matter.. Link to comment Share on other sites More sharing options...
unusualsuspect Posted March 28, 2007 Report Share Posted March 28, 2007 The easiest and best way to hold title to real estate is in trust. Don't name the trust after yourself though (ex.John and Jane Smith Trust) instead keep the trust name a little more vague(ex. The Smith Family Trust). Link to comment Share on other sites More sharing options...
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