North Carolina Bankruptcy Legal Questions

Generally, judgments are enforceable against land owned by the judgment debtor. There is a $15,000 (individual) / $30,000 (couple) homestead exemption applicable if you have an ownership interest in and reside in a home. A judgment creditor must pay proceeds equal to the exemption. Any mortgages would also have to be paid off.... Read More

When a person dies, property they own, both real and personal, becomes the property of their estate. The estate would have to publish for creditors and before their was a distribution to heirs, creditors would have to be paid. If the property was jointly owned with full rights of survivorship, the property passes to the survivor and is not subject to the debts of the deceased person.... Read More

This is a tricky problem but it still may be possible to get the satisfaction filed. It will require a lot of homework. You will have to first make a copy of the deed of trust. Who is listed as the trustee? The lender? Is it through MERS (mortgage electronic recording system)? Have you contacted MERS if so, Although you say that the lenders are out of business, what happened to them? Their assets went somewhere. Trace the companies see who bought their assets. Once you find out who may have the loan, then a letter can be sent to the right party explaining the situation and asking for a satisfaction of judgment/release of lien. There is a set process set forth in NCGA 45-36.2. If you find out who has the loan, then a certified letter needs sent to the lender. If there truly is a dead end, then you will need to seek out a real estate attorney. There is a process for that outlined in the statutes too. Once the attorney gives notice then the attorney can submit an affidavit of satisfaction. If you cannot locate the lender, try the trustee of the deed of trust before you hire a lawyer; the trustee may also be able to record a satisfaction once you supply proof that the loan was paid with the proceeds of the refinance.... Read More

Unfortunately if there is no true defense to the debt, then they can eventually file a lawsuit for money owed, assuming the statute of limitations hasn't passed. Whether you respond to the summons or not, likely a judgment will eventually be entered. But the "worse case scenario" would be a judgment against you on the records at the court house. They cannot arrest you, take your house, or your car, garnish your wages, attach to your taxes, etc. You have what are called "exemption rights" to protect most of your main assets or at least up to a certain value. After that, if there is nothing left to collect against, while they have a right to try, not much will happen. It does become a lien on any real property you own such that if you were to try and refinance or sell later, it would need to be paid off at that time. A judgment is good for 10 years and also shows up on your credit. You can try to negotiate with them at any time, even after judgment is entered. I hope this provides you at least some relief!... Read More

No. There is a popular misconception that there is a 3-day right to cancel. That rule only applies to in-home sales presentations - like where a Kirby Vacuum sales representative pushes their way into your home and pressures you to sign a contract for a very expensive vacuum. In these kinds of cases, there is a 3-day right of cancellation. Most auto sales occur at a car dealership so cancellation rules do not apply. A few car dealers in the past offered cancellations - Car Max and Saturn come to mind. However, it would be written into the sales contract whether there is a right to return the vehicle or not. If there is no cancellation and you have buyer's remorse and have just decided to cancel, I would suggest going back to the dealer and see if the dealer will permit you to exchange the vehicle for something more affordable. Do not just take the car back. It will be treated like a repossession. There is no difference between a voluntary surrender and an involuntary repossession. Even worse, if the car is re-sold, the lender can come after you for a deficiency so you will be paying for a car that you do not own. If the dealer will not let you trade for something else, suck it up and try to trade in somewhere else in a few months. Most dealers though will not pay you as much as you owe (especially true if you overpaid). If there is something wrong with the vehicle, that's a different issue entirely and you should see a consumer attorney or re-post here with the specific facts so I or another attorney can address that.... Read More

First, if a notice is from a Florida attorney who is not admitted to practice law in NC, then you need not worry. An attorney who is not licensed in NC cannot sue you on behalf of someone else in NC. The Florida attorney might be able to sue you in Florida if jurisdiction exists. I really cannot comment on the substance of the notice. None of my debt settlement clients have had this situation arise. It would be in your best interest to have the notice reviewed by me or another attorney in order to advise you of your rights. Failing that, I can try to offer some pointers:(1) what is the notice about? Who is the creditor that the lawyer is representing? A junk debt buyer? A credit card company? A payday lender? (2) is this for a debt for which you are legally responsible? if so, when was the last time a payment was made on the account to the best of your knowledge? (3) what if anything have you done in response to the notice? have you sent any kind of a letter? If you have no clue about this debt, I would send a letter via certified mail to the attorney and dispute the debt, denying all liability for it and asking that the attorney send you proof - like a credit card application or credit card statement. If the debt is owned by a junk debt buyer, then also ask for a bill of sale or affidavit of assignment. Send the letter certified with a return receipt requested. Keep a copy., If this is your debt, it was incurred in NC and it has been more than 3 years since you paid, collection of the debt may be barred by the statute of limitations. In such case, send a dispute letter and advise that collection of the debt is barred by the statute of limitations and not to contact you any further. Ask also for proof of the date of last payment as well as proof of your liability for the debt if the lawyer alleges that collection is still proper. Do not admit that this is your debt or that you are liable. If you do not word it correctly it may be construed as an admission of the debt.... Read More

It depends. Before I address your statute of limitation question, you describe the creditor as "refreshing" the date of the date and ask if its legal. The answer is no, its not lawful. As per the Fair Credit Reporting Act (FCRA), information about the debt can only stay on your credit report for about 7 1/2 years from the date that you last paid. See FCRA, 15 USC ? 1681c(a)(1). It is a violation of the FCRA to furnish incorrect information. What you need to do is write to the credit bureaus who are reporting the debt and dispute the information. Send the letter by certified mail return receipt requested. If the credit bureaus maintain that the information is correct, then you need to send a certified letter to the creditor supplying the information and ask them to correct. Again, you send the letter via certified mail, return receipt requested. You need to do this and follow the steps before you can sue whoever owns the debt now. However, disputing the date the debt was sent for collection now should not result in the removal of the debt. If the debt is less than 7 years old, then it can be listed on your report. What is incorrect is making it appear as if the debt was recent charge-off. The statute of limitations is a defense to the debt that is raised in court. It has nothing to do with how the debt is reported on your credit. For things like credit card debts, the statute of limitations can be either in the place where you reside now or in the place where the credit card was taken out, whichever is longer. It can also be as provided for in the agreement between the parties. You indicate that the debt was taken out in NJ. If so, NJ appears to have a 6-year statute of limitations, although I am not admitted to practice there and you should confirm with a NJ-licensed attorney. The problem is that the statute of limitation is only a court defense. That means that if you are sued in court, you raise the defense in an answer filed with the court. It does not mean that you don't owe the debt or that the creditor cannot try and collect. And it does not mean that it cannot be reported on your credit report either (assuming that the date of delinquency is correctly reported). The other tricky thing about statute of limitations concerns tolling provisions and borrowing provisions. I have seen a case where the contract (credit card agreement) provided it would be governed by the law of state A. Neither the credit card agreement nor the debtor lived in state A. The debtor tried to object to a lawsuit that was brought 6 years later alleging the expiration of the statute but the court said that under the tolling provisions in state A the statute was tolled, i.e., it never began to even run because the debtor was never in state A. That case is probably very fact specific but it points out the dangers of just relying on what you think the statute of limitations is. If you ever get sued, that is the time you need to speak to a lawyer who specializes in FDCPA/FCRA violations or credit card defense. The lawyer will have to review the original credit card agreement as well as the state tolling/borrowing provisions to see what they say. There is also such a thing as judge made law. The statute may say one thing and you might think it would apply, but if a court has determined otherwise that a different statute applies then the court law might govern. This situation is typified by GA law (where I am also admitted). In GA, you would think a 4-year statute of limitations applies and you would be wrong because GA caselaw says that is 6 years. Go figure. PA does hold that it is 4 years though. In your case, depending on what the NJ tolling provision says, it may be possible to sue you even past the 6 year statute of limitations in NJ. Is that likely? Perhaps not. However, because you left NJ and went to PA, you should ask a NJ lawyer about the tolling provision to see if you leaving the state tolled the statute once y... Read More

You must include all assets and all debts in any bankruptcy case.  Failure to do so is grounds for sanctions, including denial of discharge and possibly monetary penalties. If you're asking whether or not a specific debt is dischargeable in bankruptcy, that depends on the basis of the debt and whether it is of a type excepted from discharge, such as student loans, certain taxes, debts incurred through fraud, etc. You need to have a consult with an experienced bankruptcy attorney in your area for more details. And yes, you can file individually. Mark Markus has been practicing exclusively bankruptcy law in California since 1991.  He is a Certified Specialist in Bankruptcy Law by the State Bar of California Board of Legal Specialization,  AV-Rated by martindale.com, and A+ rated by the Better Business Bureau.  ... Read More

No. Not simply for failing to pay on alone. Rogue collection agencies sometimes threaten this but the threat itself is a violation of federal law. Do not believe it. If you are concerned or if you believe that there are other relevant facts, you should speak with a local consumer rights attorney.... Read More

Pre-judgment, the answer is no. Debtor's prison was abolished a long time ago. It is not a crime to have debts which one cannot pay. The exception would be if you incurred these costs with the intent not to pay and defraud the health care provider. Post-judgment is another matter. You indicate that you are in Kansas. I am not a Kansas-licensed attorney. However, I am somewhat familiar with practices in the mid-west and other states. Once a judgment has been entered, the creditor can garnish wages. In some states, the court can order the debtor to come into court for a post-judgment supplemental hearing. If the debtor fails to attend the hearing, then an arrest warrant can be issued. If you are in a state which has a procedure like this then you MUST attend the court hearing even if your wages are being garnished because the creditor may wish to see what other assets you have. In some cases, the court may even enter a reasonable payment plan so it would be to your benefit to go to court. My advice to you at this juncture would be to seek out a Kansas-licensed attorney who specializes in defense of credit card and medical debt. Possibly, if you wished to file bankruptcy, then seek out a bankruptcy attorney regarding the discharge of this debt. Depending on your exemptions and what you own, it may be possible to avoid the judgment for the medical debts. You do not get a court-appointed lawyer for non-criminal matters generally.... Read More

If you are inquiring about bankruptcy schedules, you need to list all assets and all debts, listed at fair market value (which should not be less than scrap metal in the case of a non-running vehicle. Also, if you are upside down in a vehicle, you must either surrender it to the creditor or pay for it. I recommend you contact an experienced bankruptcy attorney for assistance. If you are not dealing with bankruptcy forms, but some other type, you probably should still speak to an attorney. Filling out legal forms on your own can lead to some serious problems.... Read More