Legal Question in Credit and Debt Law in North Carolina

You must file a written answer within 30 days after service of the summons to avoid a default judgment. There are several attorneys in Wake County who offer legal consultations on this kind of matter at a very reasonable cost. Before you answer the complaint on your own, please get some legal advice.

You don't provide any relevant details. Who is suing you? When did you receive theg complaint? What is the lawsuit about? What are your circumstances? What assets do you have that would be at risk?

Assuming that this is for something like a credit card debt, what you do really depends on your situtation. Litigation is not the answer for a credit card debt (assuming that the lawsuit is timely and you have no valid defenses - like the statute of limitations) as the creditor will get a judgment against you no matter what you do.

The only way to completely avoid a judgment is: (1) file bankruptcy; (2) resolve the debt - either pay in full or negotiate a settlement or (3) in the rare case where a valid defense exists, then litigate.

However, bankruptcy is not for everyone. Do you have a lot of debts (over $10,000)? Are you relatively young? Do you qualify for a chapter 7? If you are elderly, living on a fixed income and have few assets then I would not file bankruptcy. If this is your only debt I also would not necessarily file if the debt is under $10,000. The reason I say this as most bankruptcy attorneys charge anywhere from $2000 to $2500 (this includes filing fees, attorney fees, fees to get a certificate from a consumer credit counseling agency that you have completed a class etc.).

How much is the debt for? Would you be able to resolve the debt by way of settlement? Most credit card issuers or junk debt buyers (depending on who is suing) will accept somewhere between 50% and 80% of the debt. However, there is no law that requires them to settle. If its for another type of debt, the creditor may want more. It also depends on your circumstances (employed or not working; elderly and on a fixed income and assets).

There are things that you can do to position yourself for settlement and protect as much of your assets as possible. I could give better advice if I knew your circumstances. I give free email consults and charge $50 for a 30 minute phone consult. I also resolve debts for a reasonable fee. Please contact me at [email protected] if interested.