Legal Question in Credit and Debt Law in North Carolina

Yes. I am not sure what you mean by a collection that is a "public record." Was a judgment entered or not? If there is a judgment in North Carolina, the judgment earns interest at a rate of 8% from the date of entry of the judgment. If there is no judgment, then the credit card agreement controls and the interest rate is whatever the contract provides (assuming this is a credit card debt or some other type of contract).

Either way, the debt does need to be resolved. However, if no judgment was entered, the debt is now past the statute of limitations IF no payment was ever made after the date of default. If a judgment was entered, the judgments are good for 10 years and can be renewed for another 10. Debts can stay on a credit repot for 7 years after the date of entry of the judgment or the date of default. What this means is that even if a debt drops off the credit report, it is still valid and collectible if a judgment has been entered.

That all said, debts can be settled. It depends on the stage of the proceedings (before or after judgment), the amount of the debt and what the creditor is willing to accept. The creditor is more likely to reduce the judgment if the debt can be settled in one lump sum.

And remember, get any agreements IN WRITING before any money changes hands.