Legal Question in Credit and Debt Law in North Carolina

By not responding they will get a quick judgment against you and take steps to collect. Without reviewing your situation, I can't tell if you have any defenses. If you respond but admit the allegations, they will also get a judgment against you. Sometimes, it might be best to deny certain allegations (and then serve them with discovery to buy time and attempt to negotiate with them. Now you are supposed to admit allegations if they are true but the point is that often times you do not know if the allegation is true - for example their allegation might be that you owe them $7,543.26. Is this true? How did they arrive at the number? Are they using correct interest rates? etc. etc.

Unfortunately, you have to either really know what you are doing or get an attorney for assistance. You could see if you would qualify for legal aid. An attorney might be able to help you negotiate it down.

In the event, they do get a judgment against you, they would not be able to take your house unless you have equity of over $70,000.00 but you must take the necessary steps to fill out the paperwork. Should they get a judgment, they will send you a notice of rights to designate your exemptions and you must fill these forms out and return them to the court within 20 days. You can each exempt up to $35,000 for a residence so if you have a mortgage on the property, they will not be able to sell it. Of course, it will make it more difficult to sell or refinance.

- Jeff