Legal Question in Credit and Debt Law in North Carolina

The quick answer is they can sue you, get a judgment and attempt to collect through the Sheriff's office. There are a lot of different factors involved and depends on your situation. If the amount is small, it may not be cost effective for them to sue. Other times, they will get a judgment but be unable to collect.

Debt collectors, in most cases, can do nothing. If they are trying to collect the debt for the original creditor, the creditor can get a lawyer and sue you and get a judgment. If the debt collector is a junk debt buyer, then they get a lawyer and sue.

If you receive a summons and complaint, do not ignore it. Have it reviewed by an attorney. You may have valid defenses and objections which will be lost if not raised properly in an answer.

A judgment goes on your credit report, is good for 10 years, can be renewed for another 10 years and earns 8% interest per year which is calculated daily. The judgment only gets bigger and never ever goes away. It depends on how much you owe - my ballpark rule of thumb is that if you owe $1000 or more they can and will sue.

While many people are "judgment proof" (meaning that everthing the debtor owns cannot be seized), in North Carolina, a judgment debtor must assert his/her right to place the assets off limits. This is done by filing a motion to claim exempt property. You will review a notice of rights and motion to claim property if a judgment is entered. Do not ignore this at all. If you do not file this then your exemptions are waived. Exemptions in NC cover things like your car, home and personal property.

There is no wage garnishment in NC for most things like credit card debts. However, if you don't take steps to fill out the exemptions and protect yourself, your bank account can be frozen and the funds taken for the judgment creditor. Any non-exempt assets owned free and clear and which are titled solely in your name are also at risk of being seized and sold.

I do not know your circumstances but you do need help. Don't deal with the debt collector on your own. I give free email consults and charge $50 for 30 minute phone consult. Please contact me at [email protected] if you would like to discuss the specifics of your situation in confidence.