Legal Question in Credit and Debt Law in North Carolina

Unfortunately more information is needed. First, you have to sue and win. So you will have to prove

1. That you gave money

2. That the money was a loan

3. What the repayment terms are

Assuming you prove that you have a loan and win. You then have you actually collect on the judgment. This is the hard part. If the person does not have substantial money or assets may just get a judgment that is uncollectable.

Attorney Love is right on. Suing is the easy part. You can sue anybody for anything at any time. Proving the loan is mildly to moderately difficult depending on your proof. Do you have proof you made the loan, like a cancelled check which has "loan" written in the memo line or a promissory note promising to repay the money signed by your relative? If no, then your relative may try to claim it was a gift. When was the date of last payment, if any? Or when was the loan to be repaid by? Did you ever make a written demand for the money? These are important questions which you need to have the answers too in case it becomes an issue. The written demand part is relevant if this loan was payable on demand. There can be no case really if you never made a written demand. Phone calls/messages or texts/emails may or may not count depending on what the judge wants to do.

Assuming that you get a judgment as noted by Attorney Love, collecting will be the most difficult part. How much is owed? Sheriff's do not like to execute for very small sums ($1,000 or less). And before you even get to the execution, your judgment first has to sit for 30 days before you can enforce. And even then, you have to first serve the debtor with documents called a notice of rights to have exemptions designated and motion to claim exempt property. These documents can be obtained for free online at www.nccourts.org or you can ask your local clerk of court who may have the forms.

The judgment debtor has 20 days to file these forms with the court. There is no wage garnishment in NC for private loan debts so whether you can collect or not will depend on what the debtor owns, whether it is paid for and how it is titled. If the debtor owns nothing solely in his/her name free and clear, you are going to have a hard time collecting even if the debtor does not file exemptions. There is no wage garnishment in NC. About the best you can hope for is that the debtor has money in the bank and does not think to protect his/her bank account on the exemptions.

Once the exemptions are filed or if the period to file has expired, then you will have to file a writ of execution and send to the sheriff.

If there is a lot of money owed, I suggest that you at least consult with an attorney now and hire the attorney for execution if you recover a judgment.

If very little is owed, then I would make sure you have done your written demand before you sue and that you have proof that this was a loan. Sue and recover a judgment. Judgments have value even if the sum owed makes it hard to collect. Judgments carry interest at a rate of 8% per year, but interest accrues daily. Judgments never go away but for enforcement purposes, they last for 10 years and can be renewed for another 10 years. The judgments are (or should be) listed on the debtor's credit report and if he/she ever wants to get a mortgage or car loan or some other kind of personal loan or if/she he wants to sell property, the judgment will have to be taken care of or resolved.