Full question:
My wife and I purchased a home in 1997. I have a creditor suing me and I was wondering if they get a judgment against me, could they attach it to the property. We live in North Carolina and the judgment would be against me only as my wife is not on the account.
- Category: Debts and Credit
- Date:
- State: North Carolina
Answer:
Yes, if a creditor obtains a judgment against you and it remains unpaid, they may be able to attach it to your property, provided your name is on the title. If the home is sold, your share of the equity could be used to pay creditors.
In North Carolina, property owned by spouses as tenants by the entirety cannot be sold to satisfy the debt of only one spouse. However, if the property is held as joint tenants (not tenants by the entirety), it may be sold to satisfy the debt of one owner, up to the amount of that owner's equity in the property. The non-debtor spouse would receive their share of the equity from the sale.
Generally, one spouse is not liable for the debts of the other if the debt is an individual account and the other spouse is not a co-signer or guarantor. However, in certain situations, such as bankruptcy or divorce, creditors may pursue jointly held assets, including bank accounts in both names.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.