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 personal property (clothes, furniture, etc.), $1,000 for each dependent child up to a maximum of $4,000; $3,500 equity in any one motor vehicle; a bonus wild card exemption of $5,000 which the debtor can use for anything not exempted anywhere else. There are a few other exemptions, but these are the ones that apply to most people. These exemptions only apply to things in your name or which are jointly held with another person. There also may be other exemptions under other laws which might apply. There is no wage garnishment in NC for most debts.
If you are concerned about asset protection and exemptions, I suggest you consult with an attorney to review your situation. Please contact me at firstname.lastname@example.org if interested. I give free email consults. There is a charge for phone or in-person consults.
Justia Legal Answers is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Legal Answers is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Legal Answers without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.