Charlotte, NC asked in Bankruptcy and Consumer Law for North Carolina

Q: I have a large Federal Judgment that was placed against me in July of 2011. I have been making payments on this

judgment. I have a smaller judgment that was placed against me by an individual creditor in September of 2011. This judgment was renewed in 2021 on its 10 year anniversary. This creditor has not attempted any collections until now. I received a Notice of Right to Have Exemptions Designated. Since the Federal judgment supersedes, does any proceeds from a asset/property seizure by this creditor go to the Feds or can the Feds claw back any proceeds?

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1 Lawyer Answer
Lynn Ellen Coleman
Lynn Ellen Coleman
  • Bankruptcy Lawyer
  • Licensed in North Carolina

A: The Federal judgment does not "supersede". You need to resond to the Notice of Right and claim your exemptions on time. The State court judgment creditor can have the Sheriff take any non exempt assets with a writ of execution. The two judgments are independent of the other. There are many other factors too complex to discuss online. Seek legal counsel for specific advice.

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