Legal Question in Credit and Debt Law in North Carolina

No and if the debt collector is telling you that, they are lying and in violation of the Fair Debt Collection Practices Act.

If a car has been repo'd, then any balance remaining is like any other unsecured debt. The creditor has 3 years to sue you on the deficiency (running from the date demand is made for paymeny of the deficiency). If its been more than 3 years, a debt collector can still try to collect. Of course, you always have a moral duty to pay your legitimate debts even if you don't have a legal duty. Whether you pay or not is up to you (there are reasons for and against paying, but you should only make this decision after consulting with legal counsel about your situation).

There is no debtors' prison in the US. If you owe money, the creditor can sue you and recover a judgment. The creditor cannot out you in jail. The creditor is permitted to use lawful means to collect the judgment. In NC, there is no wage garnishment, so a creditor is limited to levying on your bank account and seizing items that are not exempt. However, before levy on your bank account or seizure of any items can occur, a creditor must first obtain a judgment. The creditor then serves you with papers called a "notice of rights to have exemptions designated" and "motion to claim exempt property." The latter is very important and you need to fill it out to protect your possessions from seizure/levy by the sheriff.

If the deficiency debt is over 3 years old, then if you are served with a lawsuit (you will get a summons and complaint), the immediately go to a lawyer. Pay the attorney to draft an answer for you asserting the statute of limitations. It will be well worth the money spent if the lawyer can get the case dismissed for you.

If you are interested in resoolving te debt in a non-bankruptcy non-litigation context or if you would just like help in dealing with the creditor, I kmay be able to assist. I give free email consults. I charge $50 for a 30 minute phone consult. I also can send letters to the credit on your behalf for a reasonable fee to stop the harassment. I can also assist in resolving the debt for a reasonable fee if you have sufficient funds to do that.

PS - forgot to give my email address - Please contact me at [email protected] if interested.