Legal Question in Credit and Debt Law in North Carolina

When you default on a vehicle that is financed, the vehicle will be repossessed. You can probably save a little in repossession costs if you surrender voluntarily. If you do not, eventually the lender will repo it. I have seen a few instances where a borrower is upside down and a lender has refused to repo, but more often the lender does repo. The vehicle is then sold at an auto auction. The sale proceeds are applied to the loan balance. Vehicles do not bring in nearly what they are worth at auction and there almost always is a deficiency owed. The lender will then try to collect that from you. If you are not upside down and can sell lthe vehicles, that would be a better option.

If you default on the credit card, the credit card company will send the debt for collections. Depends on the creditor - some never sell to junk debt buyers and have a likelihood of suing you within 3 years of the default. Other creditors seldom sue but will sell to a junk debt buyer who may sue. You could file for bankruptcy but there are prohibitions about discharging debt where you charged up stuff within 90 days of bankrutcy. You have a lot on your plate.