Lawyers, Answer Questions  & Get Points Log In
North Carolina Bankruptcy Questions & Answers
1 Answer | Asked in Bankruptcy and Collections for North Carolina on
Q: When filling out rights to have exemptions designated form, do I have to state that my house is protected by tenancy by

The entirety or is it automatically protected if the creditor attempts to place a lien on our property. I ask because technically it's not an exemption but a form of ownership. Thanks

Cristina M. Lipan
Cristina M. Lipan
answered on Jul 21, 2023

This response is assuming you are completing bankruptcy schedules.

Tenancy by entirety is not an exemption, it is only the type of ownership you have, as you mentioned.

On Schedule A/B you list your ownership interest in the Property (tenancy by the entirety).

On Schedule C...
View More

1 Answer | Asked in Bankruptcy and Collections for North Carolina on
Q: Is there a wildcard exemption outside of bankruptcy in NC? All of the Info I find involves claiming bankruptcy.

if someone's home is already protected by tenancy by the entirety, would that make them eligible to use the wildcard exemption because technically they did not use the homestead exemption? Thanks

Lynn Ellen Coleman
Lynn Ellen Coleman
answered on Jun 24, 2023

Yes, the "wildcard" exemption is available if the residence is protected by "tenancy by the entireties". It can be layered on top of the car exemption, tools of the trade exemption, etc. to protect excess value in those items or it can be used to protect a second vehicle, for example.

2 Answers | Asked in Bankruptcy for North Carolina on
Q: My mother filed bankruptcy 7 11/21/2014 case # 14-06800-5-dmv what I need know her house was under bankruptcy she been

making payments sent then she had no idea she didn’t have make I just found out this is their any recourse I can take

Damon Duncan
Damon Duncan
answered on May 24, 2023

If I understand your question correctly, you are concerned because you feel like your mother has been making payments on a mortgage that she didn't have to make. If that's correct, it depends on whether your mother wants to keep the property. If she did (does) not want to keep the... View More

View More Answers

2 Answers | Asked in Bankruptcy for North Carolina on
Q: Mother filed bankruptcy in 11/21/2014 she been making payments on house since then now I found out house under bankruptc

Any thing I can do

Lynn Ellen Coleman
Lynn Ellen Coleman
answered on May 24, 2023

All debt is included in a bankruptcy. You provide no details at all about what you want to do, so I will take a few guesses. The mortgage payments do not have to be reported to the credit bureau. They do need to give her credit for the payments. Your mother should reach back out to the attorney who... View More

View More Answers

2 Answers | Asked in Bankruptcy for North Carolina on
Q: If my husband files BK or engages the services of a debt relief agency do I have to sign on too? Thank you for your time

It's hubby's credit cards that are the problem. I'm not on any of the accounts, but will I have to sign on if he wants to do this? I'm not clear on the laws in North Carolina regarding spouses and bankruptcy or debt relief. Thank you for your time.

Damon Duncan
Damon Duncan
answered on May 24, 2023

You are not required to file a bankruptcy with your spouse. However, they will look at your income and the household expenses. As long as you are not a co-debtor on any of the debts that he will include in his bankruptcy then his filing of the bankruptcy should not have a negative impact on your... View More

View More Answers

1 Answer | Asked in Bankruptcy and Collections for North Carolina on
Q: What should I expect when I go to the county sherrif office for a writ of execution? I have no money to pay the judgmen

Judgement. I live in NC. My house and car are exempt. I have no savings and nothing of value. I have no bank account. I receive paper checks. I am in no position to pay or to agree to a payment plan at this time.im not concerned with interest because i am debating on claiming bankruptcy in the... View More

Lynn Ellen Coleman
Lynn Ellen Coleman
answered on Mar 20, 2023

The answer depends upon whether or not you timely filed a Motion To Claim Exempt Property to claim the exemptions in your house and particularly in your car. If you did timely file that Motion, just speak to the Sheriff and explain your situation. Most likely, the Sheriff will just return the Writ... View More

2 Answers | Asked in Bankruptcy, Civil Litigation and Landlord - Tenant for North Carolina on
Q: Renter and him filing bankruptcy

I started the eviction process on this renter. I am evicting because of breach of contract damage to home and trash.. he sent me papers today that he was in bankruptcy and I couldn’t sue for eviction any longer.. we are to go to court on Monday at the county court house but now I am thinking I... View More

W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
answered on Feb 15, 2023

When a bankruptcy case is filed, it triggers an "automatic stay" against any action to collect a debt against the debtor or his property.

For those who know, or should know, or constructively know, of the bankruptcy filing, and persist with collection efforts, even for possession...
View More

View More Answers

2 Answers | Asked in Bankruptcy, Civil Litigation and Landlord - Tenant for North Carolina on
Q: Renter and him filing bankruptcy

I started the eviction process on this renter. I am evicting because of breach of contract damage to home and trash.. he sent me papers today that he was in bankruptcy and I couldn’t sue for eviction any longer.. we are to go to court on Monday at the county court house but now I am thinking I... View More

Lynn Ellen Coleman
Lynn Ellen Coleman
answered on Feb 15, 2023

Did he file bankruptcy before the breach of the lease or after? I agree with the other attorney that you should consult your own attorney privately for advice before your court datethe specifics need to be reviewed and we can't do that for you here (don't just ask a general question here... View More

View More Answers

1 Answer | Asked in Bankruptcy and Consumer Law for North Carolina on
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.... View More

Lynn Ellen Coleman
Lynn Ellen Coleman
answered on Feb 13, 2023

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... View More

2 Answers | Asked in Bankruptcy, Estate Planning, Child Support and Collections for North Carolina on
Q: A creditor has a summary judgement against me. I had a lawyer look over exemption paperwork. What's next?

I live in NC. House is fully protected by TBE. All assets are 100% fully protected. No wage garnishment in NC and I cash my paper check at a check cashing business. I deal in cash only. I have no bank account. I tried to negotiate with them before they sued and because they didn't work with... View More

Lynn Ellen Coleman
Lynn Ellen Coleman
answered on Nov 13, 2022

If the judgment is accruing post judgment interest, you may wish to consider filing bankruptcy or settling rather than waiting it out. Judgments are good for 10 years and are easily renewed for another 10 years. Your only dangers in waiting them out is that your assets may appreciate and become not... View More

View More Answers

2 Answers | Asked in Bankruptcy and Family Law for North Carolina on
Q: If I am ordered responsible for 50% of marital debt during a divorce, can I file bankruptcy if debt not in my name?

All debt in my wife’s name and we are divorcing. If I am responsible for 50% of marital debt and she is filing bankruptcy, how do I file for my half of the debt if it’s not in my name?

W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
answered on Sep 19, 2022

I had this issue in a case in Oklahoma, involving a Colorado bankruptcy, and a Florida divorce.

Your divorce decree/property settlement agreement most probably allocates responsibility for the marital debts, and that is what includes you as a responsible party to the debt. But your...
View More

View More Answers

2 Answers | Asked in Bankruptcy and Family Law for North Carolina on
Q: If I am ordered responsible for 50% of marital debt during a divorce, can I file bankruptcy if debt not in my name?

All debt in my wife’s name and we are divorcing. If I am responsible for 50% of marital debt and she is filing bankruptcy, how do I file for my half of the debt if it’s not in my name?

Lynn Ellen Coleman
Lynn Ellen Coleman
answered on Sep 19, 2022

Your bankruptcy attorney needs to review the court Order and any related property settlement agreement to be certain. However, if this was simply a division of property and not an alimony or "support" order, it would be dischargeable in a Chapter 13 bankruptcy bit not in a CHapter 7... View More

View More Answers

2 Answers | Asked in Bankruptcy and Collections for North Carolina on
Q: I executed a new deed adding my wife in NC last year creating TBE. She is now being sued by Discover. Is the house safe?

The debt is only in her name.

Also,, She gets a paper check and has no bank account. I cash the check for her through my bank. We have very little equity in a jointly owned car. My major concern is the house but I think she is practically, "judgement proof."am I wrong? Thanks

W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
answered on Sep 15, 2022

North Carolina has long recognized the common law creation and enforcement of the tenancy by entirety concept. Here's a good UNC law review article tracing its history.... View More

View More Answers

2 Answers | Asked in Bankruptcy and Collections for North Carolina on
Q: I executed a new deed adding my wife in NC last year creating TBE. She is now being sued by Discover. Is the house safe?

The debt is only in her name.

Also,, She gets a paper check and has no bank account. I cash the check for her through my bank. We have very little equity in a jointly owned car. My major concern is the house but I think she is practically, "judgement proof."am I wrong? Thanks

Lynn Ellen Coleman
Lynn Ellen Coleman
answered on Sep 16, 2022

You are correct, however, if Discover gets a judgment against her and she does not pay off or resolve the judgment before you die, the judgment automatically becomes a lien on the house. Judgments are enforceable for 10 years, and are easily renewed for a second 10 year period. Your wife needs to... View More

View More Answers

1 Answer | Asked in Collections and Bankruptcy for North Carolina on
Q: Is an HSA exempt from collections in NC?
Lynn Ellen Coleman
Lynn Ellen Coleman
answered on Sep 12, 2022

There is no specific exemption for a health savings account under Federal or State law. North Carolina residents must use the $5,000.00 "wild card" exemption to cover HSA balances - assuming that the "wild card" is available. If a debtor uses up their $35,000.00 residential... View More

2 Answers | Asked in Bankruptcy, Estate Planning and Probate for North Carolina on
Q: Need to cash a check that has my deceased husband and me on it. Bank won’t accept because it is more then$10,000.

The settlement came in my name but went through bankruptcy court to pay both our debts. The rest comes to me. But has both our names on it. Husband had no assets of value. Never opened probate estate I just pay his bills as they came in. Now what do I do

Lynn Ellen Coleman
Lynn Ellen Coleman
answered on Sep 12, 2022

I agree with the other answer but you may also have to open an estate and be appointed as the administrator in order to negotiate the check due to ita large size. The Trustee may refuse to issue it in your name only because theoretically, your husband could have other heirs besides you.

View More Answers

2 Answers | Asked in Bankruptcy, Estate Planning and Probate for North Carolina on
Q: Need to cash a check that has my deceased husband and me on it. Bank won’t accept because it is more then$10,000.

The settlement came in my name but went through bankruptcy court to pay both our debts. The rest comes to me. But has both our names on it. Husband had no assets of value. Never opened probate estate I just pay his bills as they came in. Now what do I do

Cristina M. Lipan
Cristina M. Lipan
answered on Sep 12, 2022

It sounds like the check came from the bankruptcy trustee. Contact the trustee and ask to re-issue the check in your name only. Be prepared to submit the certificate of death for the Trustee's due diligence.

View More Answers

1 Answer | Asked in Consumer Law and Bankruptcy for North Carolina on
Q: My car is collateral for a loan I have with one main financial company. Can I voluntarily surrender the car?
Lynn Ellen Coleman
Lynn Ellen Coleman
answered on Jun 20, 2022

This will have a negative effect on your credit. You can try to voluntarily surrender the car. OneMain is NOT required to take the car in satisfaction of the loan. They can refuse to come pick up the car or take the car. They also don't have to release the lien on the title if they refuse to... View More

1 Answer | Asked in Bankruptcy for North Carolina on
Q: Am I liable for accounts I'm not a signer on? They are my husbands

Hubby has gotten in over his head with HIS credit cards. If he files BK or uses a credit relief plan am I liable for the debt also? I am NOT on the accounts in question. Thank you!

Timothy Denison
Timothy Denison
answered on May 23, 2023

No. You are not liable if you were never on the account. Solely his debt.

1 Answer | Asked in Bankruptcy for North Carolina on
Q: If my husband files BK or goes for debt relief, will it effect my credit score? I am not on the accounts.

My husband has gotten in over his head with his credit cards. Honestly I don't see a way out for him unless he files bankruptcy or engages a debt relief program. I am not on any of the accounts and I'm afraid my credit is going to be effected too.

Timothy Denison
Timothy Denison
answered on May 22, 2023

If you are not on the accounts, your credit should not be affected.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer 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 Ask a Lawyer 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.