Legal Question in Credit and Debt Law in North Carolina

Definitely do not pay it or admit anything. Consult a debt collection defense attorney regarding this alleged debt and the pending lawsuit. Doing it on your own or doing nothing at all sink many people.

If a judgment was entered, then statute of limitations is not an issue. Even worse, you only have 1 year to challenge a judgment in most instances. According to you, the judgment was entered in 2014. Its now 2016 by my reckoning. Why are you only taking action now? It looks like too late. If I am right, you are not going to make this go away unless you resolve the debt by paying or settling.

But you indicate this is a tax lien, not a credit card debt. Huh? Which is it? Judgments automatically become liens on any real or personal property. But judgment liens are not tax liens.

Before you go off and just pay, first you need to find out what you have. Assuming a credit card debt, then you are probably too late to challenge it unless you have a really really good excuse for failing to act sooner. How much is the judgment for? What will it cost a lawyer to file a motion to open and litigate if you have grounds? What is your likelihood of success? Will it just be cheaper to settle the debt?

You need to get a copy of the court file in the county where the judgment was entered and have a lawyer review it. If it makes sense to file a motion to open, then go that route and see if the judgment can be opened so you can file an answer and allege the statute of limitations as a viable defense. If you cannot file a motion to open, I would try to settle the debt. Who is the creditor? The law firm? Most judgment debts can be settled for between 50% and 80% of the current balance, depending on who obtained the judgment.

I don't understand why this judgment is "killing" you. This makes no sense unless you are paying back the judgment in some way. You are foolish if you are trying to buy a house with an outstanding judgment because the judgment is going to attach to any real property you own. If the judgment is just against you, your spouse could buy the property if he/she will qualify. However, no mortgage lender is going to lend you money to buy a home if you are applying for the mortgage and have an outstanding judgment.

Do yourself a favor and do what you should have done a long time ago. Go and see a lawyer.