Fayetteville, NC asked in Banking for North Carolina

Q: Personal Gurantees for Commercial loans, what can the bank go after?

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1 Lawyer Answer
  • Cary, NC
  • Licenced in North Carolina

A: If there is a personal guarantee of a business loan, if the business does not pay then the bank or lender can sue the guarantor. The lender, if it wins a judgment, can recover the same as in any other civil case against a debtor. NC law allows an individual person (not a corporation)to exempt certain property from execution (seizure by the sheriff). In order to first collect, the judgment creditor would have to serve the individual judgment debtor with papers called a "notice of rights to have exemptions designated" and "motion to claim exempt property." The debtor then has 20 days to fill out and file the exemptions with the court.

While this list is by no means exhaustive, the debtor can generally exempt: $30,000 of equity in any one piece of real property; $5,000 for...

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