As a bankruptcy attorney in Asheville, close to half of the people I meet for free, initial consultations are judgment proof. This means creditors have virtually no way to collect money or property from them under North Carolina law. You are judgment proof if all of the property you own fits within the North Carolina exemptions. These exemptions apply to everyone in North Carolina, whether they have filed a bankruptcy case or not.
“I’ve been sending in $50 a month because they said otherwise they are going to sue me.”
I hear this over and over from my judgment proof clients. My response is usually, “Tell them to go ahead and sue. There are no debtor prisons. Even if they sue, they can’t get any money from you.” When you are judgment proof:
- Credit card companies (and most other non-federal creditors) do not have the ability to garnish your wages in North Carolina.
- Creditors may not legally seize any property you own to satisfy any money judgment they have been awarded by a Court.
Filing for Bankruptcy vs. Doing Nothing
The critical decision for my judgment proof clients is whether or not to file a bankruptcy case to wipe out their debt. If they do nothing, they may be able to tread water for an extended period without losing any of their paycheck or material possessions. However, many times, a bankruptcy case can be the best financial tool to use in order to improve the financial condition of the household. The key ingredient to a successful bankruptcy case is the ability to pay monthly bills after wiping out all of a client’s unsecured debt (credit cards, personal loans, repos, foreclosure deficiencies, etc.).
Want to find out if you are judgment proof? If you live in Western North Carolina, contact me for a free, initial bankruptcy consultation where I can explain your options and create a recovery plan specific to your financial situation.
*The information contained on this website is not intended and does not constitute the providing of any legal advice or any legal opinions or services to any user thereof. The information available on or through this web page is not intended and shall not be used as a substitute for the advice and consultation provided by an attorney. Any factual examples used to illustrate concepts are hypothetical and do not depict actual events or real persons.