In North Carolina can a credit card company place a levy on the debtor's checking account for unsecured debt?

Answer 1

Yes, if the creditor wins files a lawsuit and wins a judgment the judgment can be executed as a bank levy against checking or credit accounts held by the debtor even if the accounts are joint. Unsecured debt means that specific property has not been used as collateral to secure the debt owed. The judgment creditor generally has several options which can be used to recover monies owed, such as wage garnishment, bank account levy, seizure and liquidation of non exempt property and liens against real property. States establish laws that designate the type and amount of real and personal property that can be protected from creditor attachment. In most cases the exemptions allowed in bankruptcy are the same as those used to protect property against judgment enforcement. Federal non bankruptcy exemptions (such as exempting SS benefits) can also be used depending upon the individual's circumstances. The above answer doesn't make total sense, North Carolina is a no garnishment state other than tax, government, state hospital (sometimes) and child support. You may want to consult and attorney if you live in North Carolina and double check the above posters answer. There rules vary from state to state. North Carolina is also a joint tenant state which means joint accounts are protected if one of the individuals on the property or account isn't owner of the debt owed.