Supply, NC asked in Collections for North Carolina

Q: Husband got notice of right to have exemptions designated. House is in my name. Bought pre marriage. Can they seize it?

The amount owed is under 6,000. He had a arbitration hearing and was told they had 10 years to collect. This was last year.

Since my name is the only one on the house, should I add it on the paperwork as an exemtion?

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

A: If your name is the only name on the DEED (not the mortgage), your husband does not list the house on his Motion To Claim Exempt Property because he does not own it. The judgment is NOT a lien on the house. If you pass away and he inherits the house, THEN the judgment will become a lien on the house. Your husband needs to take care of this judgment sooner, rather than later, to avoid having this issue come up. If he cannot afford the payment plans offered by Discover's lawyers, he needs to see a consumer bankruptcy attorney. Filing bankruptcy may be less expensive than settlement, and he will not have to pay income tax on the discharged debt. If you do not have a will, you need to make one and devise the house to persons other than your hsuand to avoid this potential. Even if he has just a life estate in the house, the judgment will attach to his interest in the house when you pass and this could make things very complicated. The better thing to do would be to pay the judgment or file bankruptcy. You never know, you could have an accident tomorrow and unexpectedly pass away. People put their head in the sand about judgments, but they can be renewed for another 10 years if not paid in the first 10 years.

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