What a mess

If a creditor (or third party collector) takes you to court and obtains a judgment against you, they can put a lien on some of your assets. They can't do this without a court order, however. AND, if you have a 3rd party collector calling you and telling you they're going to "take your property," that's BS and you should report them for violating the FDCPA.

Even with a judgement, creditors cannot 'take' your property. The most they can do is put a lien on your assets, garnish wages and levy your banks accounts, which is to say that in case any of these assets are sold or used for financial gains, they will have a claim on a portion of the auction proceedings.

Isn't that what I just said?

Not 100% true guys if im reading his question correctly. What I think the OP was getting at was a "sherrif's sale" or "Judicial sale" where the court seizes personal property of the judgment debtor and sells it and gives proceeds to the judgment creditor. Thats probably what the collector threatened him with.

Different states have differing amounts of exemptions that no one (except the IRS generally) get to take from you in a bankruptcy or a judgment execution situation. As an aside N.C. is a non garnishment state for these types of debts so generally you dont have to worry about that. They are a little wishy washy though as to garnishment when it comes to a domesticated judgment.

The general N.C. Exemptions follow pasted from a quick google search.

""In general, a debtor may claim exemption of his homestead and certain personal property from attachment or execution or forced sale for the payment of debts. Section 1C-1602 of the North Carolina General Statutes permits the election of the exemptions provided under Article X of the North Carolina Constitution or ????1C-1601 of the North Carolina General Statutes.
Under the constitutional exemption, a debtor's homestead and the dwellings and buildings used therewith, which he uses as a residence, up to a value fixed by the General Assembly but not less than $1,000 may be exempt from sale under execution or other final process obtained on any debt, except that no property may be exempt from sale for taxes, or for payment of obligations contracted for its purchase. The debtor may also be entitled to exemption up to five hundred dollars ($500.00) in value in his personal property. (Article X of the N.C. Constitution.)
The statutory exemptions provided under ???? 1C-1601 of the North Carolina General Statutes include the debtor and his dependent's aggregate interest or value in real property or personal property used as a residence, or in a burial plot, not to exceed $10,000; any property not to exceed $500, one motor vehicle not to exceed $1,500, household furnishings, household goods, wearing apparel, appliances, books, animals, crops, or musical instruments, that are held primarily for the personal, family, or household use up to $3,500 for the debtor plus $750, but not to exceed $3,000 in total, for each dependent, any implements, professional books, or tools of the trade of the debtor or the trade not to exceed $750, life insurance proceeds, professionally prescribed health aids, compensation for personal injury or for death, but such exemption is not exempt from claims for funeral, legal, medical, dental, hospital, and health care charges related to the accident or injury giving rise to the compensation, individual retirement accounts qualified under Section 408(a) of the Internal Revenue Code, individual retirement annuities qualified under Section 408(b) of the Internal Revenue Code, and accounts established as part of a trust described in Section 408(c) of the Internal Revenue Code.
In a bankruptcy proceeding, the exemptions provided in The Bankruptcy Act, 11 U.S.C. ???? 522(d), are not applicable to residents of the State of North Carolina. (???? 1C-1601(f).) ""

In GENERAL the above posters are correct though in what usually happens since almost all judgment creditors are after cash and cash only. Hence they will take the "lien and wait" attitude described to you above.

Just be aware that if a creditor wants to be a real pain in N.C. the above quote outlines what they have the legal ability to do. As opposed to what nearly always happens.

Hope this helps.