Legal Question in Credit and Debt Law in North Carolina

If you have been sued, you have 30 days after your receipt of the complaint to file an answer. Whether you should answer or not depends on your circumstances and the grounds alleged. Assuming that this is your debt and you have no valid grounds for challenging (like the statute of limitations), it does not matter whether you answer or not as the hospital will ultimately get a judgment against you.

Depending on your assets and circumstances, you may want to consider filing bankruptcy, especially if you have other debts. If you don't want or cannot file bankruptcy, then I suggest that you start saving funds with which you can hopefully iuse to resolve the judgment when you have a suffucient amount. There is no law that says that the hospital must accept anything less than 100% of the judgment. It may depend on whether you had medical insurance, but some hospitals will cut you a break.

A judgment acts as a lien on your real property (and personal property). That means that when you go to sell your home (if that is an option), the hospital will grab any equity in your home at the time of sale. If your home is owned free and clear, the hospital may force a sale of the home. You are only allowed to exempt up to $17,500 in equity in your home (double that sum if married).

If this is a hospital debt, know what that your spouse (if you are married) will also be liable for the debt. That means that if you are going to act, both of you should file bankruptcy.

Judgments are good for 10 years and earn interest at a rate of 8% per year. The collectibility of judgments, if unpaid, can last for 10 year unless renewed. Regardless, judgments never go away. If not renewed, it just means that the right to execute (collect) on the judgment is good for 10 years.

There generally is no wage garnishment in NC, but if this is a state hospital, they may be able to garnish wages or intercept state/federal tax refunds.