Legal Question in Credit and Debt Law in North Carolina

You say they are going out of business. How? Bankruptcy? If the business has filed, then you need to file a proof of claim if there are assets. If this is a chapter 7 bankruptcy and there are no assets then you are out of luck unless there is some basis to impose personal liability on the owner. Of course, this assumes this is a business debt. Is the debt in fact in the name of the business? Is the owner or anyone else also liable? If this is a chapter 11, it means that the busines is re-organizing. Again, you must file a proof of claim and whether or not you get paid will depend on the bankruptcy plan and what other kinds of debts there are. I assume from your question that you have an unsecured debt. If you have a secured debt, you may be able to recoup some of your losses from the collateral. In either case, consult with a bankrutcy attorney if the business is in bankruptcy.

If the business is not in bankruptcy, then the business has to wind up its affairs. Claims need to be filed with the owners. However, as a practical matter, if the business has no assets, then it may not even justify filing bankruptcy. In which case, the result will be that you will be unable to collect unless there is some kind of personal guarantee or there is another obligor.

In sum, you need to find out who is obligated on the note, whether the person or business has assets, how much is owed and whether it is financially worthwhile to hire a lawyer to protect your rights tor recover some, all or none of the money.