Legal Question in Credit and Debt Law in North Carolina

Yes. If the bike was repossessed and sold, you are liable for the repo and sale costs and the balance remaining on the bike note minus the sale proceeds. However, in order to begin taking your stuff, the lender first has to get a judgment against you. The process of trying to collect is called execution. In order for the lender to execute, you must first be served with a notice of rights and motion to claim exempt property. It is good for 90 days. The lender can try to re-execute after that but has to again serve a notice of rights. Most lenders do not re-serve execution every 90 days.

I do not know what you have and do not know if your assets are at risk or not. When you get the notice of rights, feel free to contact me if you would like assistance. In the alternative, I can assist in working out resolution of the debt with the lender so that you will not have to worry about them executing on your possessions and bank account. I can do this either before or after judgment - there is no requirement that you wait.

You can also arrange to pay on the judgment directly by making payments to the clerk of court. If you do this, you will be liable for the full amount of the debt. In addition, the judgment earns interest at a rate of 8% per year, so if you pay the clear directly, make sure that you pay enough to cover the monthly interest and something on the balance.

You can also work something out - the more you can pay upfront the more likely it is that the lender will offer you a deal and will settle for less than the full balance owed. Remember that you have to get any agreements in writing BEFORE you pay any money.

Feel free to contact me if you need more assistance with this.

Rachel Hunter

Attorney at Law

[email protected]

(678)-687-9693

Admitted in GA, PA & NC