Legal Question in Bankruptcy in North Carolina

That is a huge over simplification of the law.

Essentially in NC, the only ways you can lose property for a debt is if the debt is secured such as mortgage or car loan or if an unsecured creditor...everything else, sues you and gets a judgment.

Once they get a judgment they can force the sale of property unless the property is covered by exemptions; dollar amount set in NC for which property is protected. Meaning if your house or car or other property is under the limits, your property can't be sold.

Normally, a person can exempt $35,000 in equity in their home. Equity is the amount you would pocket if you sold it (value minus mortgages and liens). A widow who owned the home with the spouse and is over 55 can exempt $60,000.

So, other than an enhanced exemption amount, there no law that automatically protects a widow's home and erases credit card debt.

If you are facing such problems it might be worth a free consultation with a bankruptcy attorney.