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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 111550
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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I have been sent a motion to claim exempt property in NC,

Customer Question

Customer: I have been sent a motion to claim exempt property in NC, how can I fight or what should I do? It was for a car that was repossessed and claiming I owe 9,000 on the car.
JA: Thanks. Can you give me any more details about your issue?
Customer: I am considering bankruptcy. I no longer own the car. I have mortgage loan, and student loans my debt ration at present is considerably more than I make.
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Submitted: 11 months ago.
Category: Legal
Expert:  Law Educator, Esq. replied 11 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
You have been sued for the money due and they got a judgment against you already and are now trying to collect? Is that what is going on here?
Customer: replied 11 months ago.
Customer: replied 11 months ago.
Hello?
Customer: replied 11 months ago.
Still awaiting answer.
Expert:  Law Educator, Esq. replied 11 months ago.
Thank you for your reply.
First, in order for them to seek money damages from you after repossession, they have to prove that they sold the car for book value or close to book value before coming after you for the difference. So you are entitled to file a motion for proof of auction, to get them to prove what the car sold for at auction to prove how much you should actually owe them.
Second, exempt property in NC are the same as used in bankruptcy, the exemptions from garnishment or seizure are the same that are exempt under NC law for bankruptcy. So, for your response to this motion, here is the list of all of your property you can claim as exempt: http://www.northcarolinabankruptcylaw.com/exemptions.html (copy and paste link into your browser to get it to work, sorry for that technical issue with the site).
Once you send back that motion with the exemptions, you need to file an Objection to Garnishment/Seizure and in the objection you need to state that they sold the car at auction and have not proven in court the amount they sold the car for was at or near book value and as such you object to the amount they are seeking.
If all of your debts are that high, you can consider bankruptcy, even though student loans cannot be extinguished in bankruptcy, and you can seek to get all of your unsecured debts, including any deficiency amount on this loan, extinguished. This would give you a lot more breathing room to pay the bills you cannot extinguish and would get this creditor off of your back and it may be a better use of the $1200 or so it would cost you to file bankruptcy than paying that money to your creditors (also the legal aid office can assist you with bankruptcy if you cannot afford an attorney).
Customer: replied 11 months ago.
What if no equity in the house?
Customer: replied 11 months ago.
My current loan $75,000, I don't have equity that I know of.
Expert:  Law Educator, Esq. replied 11 months ago.
Thank you for your reply.
If there is no equity in the house then there is nothing they can get from the house and cannot take the house. Your mortgage company is not going to let them touch the house because they are entitled to the money before any other creditor can touch the house.

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