Jump to content

Judgement in NC


Recommended Posts

If a judgment in NC is filed against you for credit cards...what is the worst that can happen? I don't want to file bankruptcy. I can't pay anything.

How long does it stay on your cr? Can they come after you for your house, car etc?

Thanks in Advance.

(waiting for my stimulus package that will never come)

Link to comment
Share on other sites

he didnt say that they couldnt take anything, he said that there is no wage garnishment.if there is a judgement issued against the op then his state exemptions should cover him...

sorry, but what exactly does state exemptions mean? :confused:

Link to comment
Share on other sites

State exemptions are what the "consumer" living in that state is allowed to use and apply to personal property, and keep it, under protection from ch. 7 bankruptcy liquidation and (usually) judgement proceedings. For instance, you have a home worth $100,000 and you owe $50,000 on it... if your state's homestead exemption is $50,000, then you're covered. No (hypothetical) judgement can be satisfied and therefore the judgement holder will not come after the property.

But if its $25,000 then you have to worry about a judgement being won, then a lien filed against the property, and then they could try to seize the property in order to satisfy the judgement lien because you have an extra $25,000 in equity. And then this opens up a big can of worms.

They usually just file the lien and wait. But if they choose to come after you.... lets say for example that they did try to force you out of your property for a $10,000 judgement. You have $50,000 in equity, and $25,000 of that equity is covered by your state's "exemptions". Before they can do anything, they have to assume your place will sell for around the extra $25,000 in equity, then if they choose to follow through and seize your property, they have to pay you the amount of your state's exemption, which is $25,000.....plus pay for all of the other costs associated with selling the property.

So, they will attempt to pay you your state's exemption, $25,000 to seize control of it, in order to tap into the remaining $25,000 of equity, in order to satisfy a $10,000 judgement.......thats why they usually just file a lien and then sit on it.

Link to comment
Share on other sites

State exemptions are what the "consumer" living in that state is allowed to use and apply to personal property, and keep it, under protection from ch. 7 bankruptcy liquidation and (usually) judgement proceedings. For instance, you have a home worth $100,000 and you owe $50,000 on it... if your state's homestead exemption is $50,000, then you're covered. No (hypothetical) judgement can be satisfied and therefore the judgement holder will not come after the property.

But if its $25,000 then you have to worry about a judgement being won, then a lien filed against the property, and then they could try to seize the property in order to satisfy the judgement lien because you have an extra $25,000 in equity. And then this opens up a big can of worms.

They usually just file the lien and wait. But if they choose to come after you.... lets say for example that they did try to force you out of your property for a $10,000 judgement. You have $50,000 in equity, and $25,000 of that equity is covered by your state's "exemptions". Before they can do anything, they have to assume your place will sell for around the extra $25,000 in equity, then if they choose to follow through and seize your property, they have to pay you the amount of your state's exemption, which is $25,000.....plus pay for all of the other costs associated with selling the property.

So, they will attempt to pay you your state's exemption, $25,000 to seize control of it, in order to tap into the remaining $25,000 of equity, in order to satisfy a $10,000 judgement.......thats why they usually just file a lien and then sit on it.

I really appreciate the responses. But this is if I file bankruptcy right? :(

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.