Legal Question in Credit and Debt Law in North Carolina

If the loan is secured by a car title or other property they can repossess and sell the car or other item that secures the loan. If the loan is unsecured, the way this generally goes down is that the lender will start calling when the loan payment is delinquent. The lenders will also make written demands on you for payment. The loan will then charge off. The lender may send it to a collection agency and they will try to collect the debt. Of course, interest is accruing on your oan (read your loan papers) so the debt is getting bigger. The lender also can sue you and get a judgment.

Lenders cannot garnish wages for most debts in North Carolina. However, they are allowed to collect by seizing any property that you own, like cars or land that is owned free and clear or bank accounts unless it is exempt.

Judgments are good for 10 years and can be renewed for another 10 years. They earn interest at a rate of 8% per year.

Your best bet would be to pay, but if money is tight and you don't get another job quickly, see what kind of modification you can work out. If you can't pay, you can't pay. Hopefully, you find other work and get back on your feet and you can resolve the debt at that time.