Credit Card Debt in NC- Lawsuit Defenses

Credit Card Debt in NC

4/2/2018

Updated 1/2/2024

With credit beginning to flow again after the end of the great recession credit card balances continue to rise for American households. The great trap of credit cards is the low introductory offer combined with easy balance transfers allowing people to acquire more debt than they could ever hope to repay often leading to bankruptcy. In the past the fine print outlining all the potential risks was at least mailed with the application. Today the application and approval process is simply a few clicks on a computer or smartphone constituting an electronic signature.

Before the Consumer Financial Protection Bureau and consumer protections were strengthened it seems consumers didn't have much of an opportunity to even fight private arbitration "courts" that were bought and paid for by the banks. Although registration of arbitration awards as judgments seems to have ended in North Carolina there are many questions surrounding credit card debt explored herein including debt defense and debt settlement.

Can I be sued for credit card debt in NC?

Yes- Credit cards are legally allowed to sue when the borrower is in default. For some reason many individuals assume all creditors can do is put a negative mark on a borrower’s credit report. The bottom line is this- If banks could not sue for credit card debt they would stop issuing cards. Some of the main law firms that represent banks and debt buyers for credit cards lawsuits in North Carolina are listed below. The law firms below generally represent the plaintiffs listed and do not actually own the debt.

Brock and Scott, PLLC- Wells Fargo, Bank of America, N.A., TD Bank, USA, N.A.
Sessoms and Rogers, P.A.- FIA Card Services, Portfolio Recovery Associates, Unifund CCR Partners, Barclays Bank Delaware, Midland Funding, LLC
Bernhardt and Strawser- Bank of America, Citibank
Glasser and Glasser, PLC- Bank of America, N.A.
Smith Debman- Discover Bank, Truist (FKA BB&T), Midland Funding
RAS LaVrar, LLC- Capital One
Dominion Law Associates- Target National Bank
The Green Law Firm, P.C.- One Main Financial, LLC
Zwicker & Associates, P.C.- American Express National Bank
Rausch Sturm, LLP- American Express National Bank

How long before credit cards sue?

If and when credit card companies decide to sue can vary dramatically based on the creditor. Chances are if you have stopped paying on multiple cards you will eventually be sued. How long varies from a few months to right before the statute of limitations expires. Creditors can monitor your credit report to see if you are paying other debts and they have your application information disclosing whether you own a home and how much you make. They often send warning letters and make calls before filing suit as filing suit costs them money and may result in the borrower filing bankruptcy. Sometimes rather than sue on a delinquents account a bank employs a collection agency to harass a borrower, they may write off the debt and issue a 1099 tax bill, or sell the debt to debt buyers.

Are credit cards unsecured debt?

Credit cards are generally unsecured debts. The rare exception is a store card which is a purchase money security interest debt meaning the store lent you money to purchase their merchandise. This could potentially include large items such as a refrigerator, TV, jewelry, or furniture. Badcock Furniture is notorious for demanding return of their merchandise when a customer refuses to pay. For most retailers it is simply easier to ignore the collateral and sue on the debt since used items rarely retain their value anyway. Also, sometimes credit unions cross-collateralize credit card debt with all your other debts at their institution such as car loans.

Can I ignore credit card debt?

Although many choose to ignore credit card debt that is usually not the best course of action. The ramifications of ignoring credit card debt usually include damage to your credit score which can impact your insurance rates and even your prospects of landing that new job. The best approach is usually to tackle the situation early either via debt settlement or bankruptcy before lawsuits are filed, judgments are docketed, and the Sheriff is knocking on your door looking to take your property.

Do I have to go to Court for credit card debt in NC?

You don’t technically have to attend court just because you have been sued in North Carolina. Usually the creditor would prefer you not Answer the lawsuit or attend Court as that makes their job that much easier. Often if you fail to file a written Answer with the Court there is not even an actual court date. The creditor simply wins via default judgment and they simply mail a judgment to the clerk for signature. After a judgment is obtained you could potentially be required to appear in Court to disclose your assets for collection purposes via supplemental proceedings.

Can you go to jail for credit card debt?

You can’t be jailed simply because you did not pay your VISA bill. Although the media loves to report about the modern day debtors’ prison as an attention grabbing headline they no longer exist in the strict sense. Sure you can go to jail for not paying criminal court fees, child support, alimony, or ignoring a court order to appear before the court. That being said, you can longer be put in jail for not repaying a loan, which was common practice in England during colonial days and even the early days of America. Not even a judgment can result in jail time unless you ignore a directive from the Court such as a supplemental proceeding to disclose assets. About the only way credit card debt could result in incarceration is if there were accompanying criminal charges such as fraud or identity theft.

Can credit cards put a judgment on me in NC?

Yes- credit card debt can result in a judgment due to non-payment. Judgments are how creditors enforce their right to collect. Without the right to sue and obtain a judgment banks would not be in the business of loaning money.

What does it mean to have a judgment against you in NC?

A judgment in NC usually is for a specific dollar amount. Judgments are recorded in the county where the action was initiated, but can also be transcribed to additional counties. A judgment in North Carolina can result in a lien on real property owned by the debtor.

Can they take your house for credit card debt in NC?

A judgment lien on a house can potentially expose someone to losing their house to a creditor. There are however several protections to those living in most states. North Carolina allows married couples to have their house deeded as tenancy by the entirety which means only joint creditors can attach a lien to the house. Another protection is a debtor’s right to exempt up to $35,000 equity in a residence in which he or she resides if they properly claim the exemption after being issued their notice of right to claim exemptions.

Can they take your car for credit card debt in NC?

A creditor with a judgment lien could potentially take a vehicle titled in the name of the debtor. Before any property can be seized by the Sheriff a person they must be issued their notice of right to claim exemptions as mentioned above. This allows the debtor to claim certain property as exempt if properly filed within 20 days of receipt. Failure to file these exemptions at the courthouse waives all exemptions. A debtor could potentially exempt up to $8,500 equity in a vehicle. Keep in mind it is highly advisable to consult an attorney when filing out this paperwork as any mistakes could result in lost property including bank accounts.

Can credit cards garnish my wages in NC?

Although North Carolina generally does not allow for garnishment of wages except for child support or alimony there are sneaky ways for a judgment creditor to get to your money. First they may have an out of state judgment in another state that does allow wage garnishment. Second they may be able to get to you bank account containing your wages if you fail to claim your bank account as exempt after being served the notice of right to claim exemptions as noted above. Many individuals fail to claim their bank account as exempt on the standard AOC form sent by the creditor simply because there is no obvious place to list a bank account.

How long is a judgment valid in NC?

A judgment in North Carolina is valid for ten years and can be extended one time for an additional ten year period by the filing of a new action based on the original judgment. In addition to lasting up to 20 years, judgments in NC continue to accrue at 8% interest per year.

Can I be sued as an authorized user on a credit card?

Authorized users are generally not responsible for the underlying debt. That being said, it may still appear on their credit report so if the card is in default they should try and have their name removed from the account as soon as possible. If you are unsure whether you are an authorized user or codebtor you may want to contact the creditor to verify your responsibility in addition to running a credit report online.

Can I be sued as a codebtor on a credit card?

Codebtors are just as liable as the primary borrower. Each borrower is jointly and severally liable for the entire debt. The creditor can sue both parties or elect to sue just the codebtor for the entire amount if they so choose.

Can I be responsible to pay off the credit card debts of my deceased spouse?

You generally don’t inherit the debt of your spouse in North Carolina unless it is medical debt. There is a duty to support your spouse in North Carolina known as doctrine of necessaries which can include the medical debt of your spouse. The estate is generally responsible for all the debts of a dead person.

What is mandatory credit card arbitration?

For many years the credit card companies would first file for binding mandatory arbitration awards when consumers fell behind on their payments. These arbitration companies were supposed to be neutral, but in fact the fees were paid by the banks creating a potential conflict of interest. The practice of registering these arbitration awards as judgments appears to have ended in North Carolina, but the clauses still remain in many contracts. It is important for consumers to read the fine print to see if they can opt-out of arbitration clauses which usually restrict their rights.

How long before credit card debt is written off as uncollectable in NC?

This answer really depends on the creditor. Just because your credit report may reflect the debt is charged off does not mean the debt has been forgiven or that you will not be sued in the future. In fact, it does not even mean the creditor wrote the debt off their taxes and a 1099-C is imminent. A write off usually means the debt has been sold to a collection agency which may then begin their own collection efforts including filing a lawsuit.

What is the Statute of Limitations for credit card debt in NC?

The statute of limitations for most credit card debt in North Carolina is 3 years from the date of last payment under NCGS 1-52. The rare exception to the usual 3 year statute of limitations is an agreement signed under SEAL which can invoke a 10 year statute of limitations under NCGS 1-47. Signed under SEAL usually just means it simply had the word SEAL next to where you signed.

Be aware that making a new payment after the statute of limitations has run can revive an otherwise expired debt. This is why you should never make even a $20 payment over the phone to a collection agency without written verification of the debt and verifying your own records to make sure the debt is still valid. Also, it is important to note that the statute of limitations is an affirmative defense under NC law that must be properly raised in a written Answer or else the defense is waived.

What if a debt buyer has purchased credit card debt?

If a debt buyer has purchased your debt then they have the legal right to sue on the debt similar to the original creditor. Some debt buyers never file suit because they buy old debt without proper documentation and they just plan to harass the debtor for whatever they can without going to Court.

The good news is if your debt has been purchased by a debt buyer such as Portfolio Recovery Associates or Unifund CCR Partners is they usually pay pennies on the dollar for old debt and often are willing to take a substantial discount on settlement because they still make money. If they purchase debt for 5 cents on the dollar or less and they settle for 10 cents on the dollar that is still a 100% profit margin.

Can a collection agency sue for credit card debt in NC?

Collection agencies or debt buyers can sue for credit card debt if they have all the proper documentation of the debt. The must allow follow special rules outlined in NC statutes applicable to debt buyers. Some of the main requirements are as follows:

NCGS 58-70-115: Requires written notice of the intent to sue be mailed to the debtor at least 30 days prior to filing suit. “The written notice shall include the name, address, and telephone number of the debt buyer, the name of the original creditor and the debtor's original account number, a copy of the contract or other document evidencing the consumer debt, and an itemized accounting of all amounts claimed to be owed.”
NCGS 58-70-150: Requires documentation of the debt be attached to the Complaint filed with the Court. “(1) A copy of the contract or other writing evidencing the original debt, which must contain a signature of the defendant. If a claim is based on credit card debt and no such signed writing evidencing the original debt ever existed, then copies of documents generated when the credit card was actually used must be attached. (2) A copy of the assignment or other writing establishing that the plaintiff is the owner of the debt. If the debt has been assigned more than once, then each assignment or other writing evidencing transfer of ownership must be attached to establish an unbroken chain of ownership. Each assignment or other writing evidencing transfer of ownership must contain the original account number of the debt purchased and must clearly show the debtor's name associated with that account number.”

How to respond to court summons for credit card debt in NC

Unless you are sued in Small Claims Court there is usually no court date provided in the lawsuit served via Sheriff or certified mail. If sued in District or Superior Court in NC the Defendant must file a written Answer with the Court within 30 days of being served with the lawsuit. Failure to file a written Answer allows the creditor to seek a default judgment for the amount requested without the need for an actual court date or hearing. Seeking the immediate advice of an attorney is critical to properly raise any and all applicable defenses some of which are outlined below.

Credit card debt defenses in NC

Some of the possible affirmative defenses and counterclaims that can be asserted if being sued are as follows:

Personal jurisdiction- issues with service
Venue- suing in the wrong county
Division- Suing in District as opposed to Superior Court
Standing- Does the Plaintiff own the debt?
Statute of Limitations- Usually 3 years from the last payment for credit card debt in NC
Payment- Have you paid the debt already?
Accord and Satisfaction- Did you already settle the debt?
Release- has the debt been forgiven
Discharge in Bankruptcy- was the debt included in a prior bankruptcy?
Fraud- Did the creditor commit fraud in inducing the contract?
Illegality- Is some part of the contract illegal?
Res Judicata- Has the creditor sued you before on the same debt?
Statute of Frauds- Some debts must be in writing
Usury- is the interest rate above the amount allowed by statute?
Capacity- Were you under an impairment at the time of contract?
Amount- The defendant may request a jury trial as to the amount owed.
Counterclaims- Fair Debt Collection violations, Fair Credit Billing Act, Fair Credit Reporting Act, NC Unfair debt collection statutes, Federal Unfair Debt Collection statutes, breach of settlement agreement, Bankruptcy violations.

What is the statute of limitations for credit card debt in NC?

Pursuant to NCGS 1-52 most contract actions in North Carolina including credit card debt are subject to a 3 year statute of limitations. A contract signed under SEAL has a 10 year statute of limitations under NCGS 1-47(2). To be signed under under SEAL generally does not require a notarized signature, but must simply have the word SEAL next to the signature line.

How to win a credit card lawsuit in NC

Winning a credit card lawsuit in North Carolina usually requires a lot of diligence and a little bit of luck. Assuming you actually owe the creditor money then the issue becomes whether the creditor can prove the asserted amount in court. If it is a debt buyer suing then they may not have the required paperwork to establish the debt and the amount owed. If the original creditor is the Plaintiff then perhaps the amount of interest or penalties has been improperly calculated. Finally, if a Defendant requests a jury trial and survives any summary judgment and discovery motions that can lead a creditor to simply give up rather than go through the hassle of a trial.

When is the best time to settle credit card debt?

Creditors sometimes run "special" offers during tax refund season as they know that is a one time a year most people have extra money and they want to get their hands on that money before anybody else does. That being said, the best time to settle is usually when a debt is very delinquent, but before it has resulted in a lawsuit as that adds extra fees payable to the law firm. The delinquent status is usually the first step of many debt consolidation companies- they sit on your first few payments to allow your debts to become more delinquent. Another reason debt consolidation companies don't make any payments early on is they keep much of your initial payments as their fee.

How to settle credit card debt when a lawsuit has been filed

If you don’t dispute the amount owed and you expect to lose in Court then settlement may be your best option outside of bankruptcy. Often creditors will settle for 50 cents on the dollar or less lump sum rather than go through the time to obtain a judgment and the uncertainty of collection efforts. In 2022, after multiple stimulus checks in 2021, extended unemployment benefits, home prices at all time highs, and bankruptcy filings down many law firms are being more aggressive and demanding settlement numbers above 50% of the balance owed.

Another option besides calling a collector or law firm yourself is engaging a bankruptcy lawyer who may be able to provide extra leverage in the negotiation process as bankruptcy usually means the creditor receives zero. That being said, you can always offer either either a lump sum or monthly payments directly to the creditor or their attorney.

187 Comments

Amy

5/21/2018 11:07:44 am

Can bank accounts be levied if the bank account is jointly owned by someone who is NOT listed on the debt? How does one protect their assets (home, levies) in the answer to the complaint?

Jason Witt

5/21/2018 02:17:03 pm

Bank accounts can be levied if in joint name because either owner can withdraw the entire balance. The non- debtor should certainly not put any future money into a joint account. If you are talking about how to exempt bank accounts that is done via the "Notice or Right to Claim Exemptions" that is sent after a judgment is entered. It sounds like you have recently been sued which means you should speak with a local attorney immediately about asset protection.

Shara

9/9/2018 03:29:41 pm

If I live paycheck to paycheck can my account be levied if I list my account as an exception with an interest of $500? I live in the state of NC.

9/9/2018 05:18:54 pm

Living paycheck to paycheck has nothing to do with what can or can't be levied. You can only claim the earnings in the last 60 day exemption if you have a spouse or dependents. If you have been served your notice of right to claim exemptions you should seek a local attorney for assistance to file your response within 20 days of service.

Paul d scott

4/7/2022 01:14:01 pm

Since credit card debt is unsecured , home is protected ??

4/7/2022 02:12:32 pm

Unsecured credit cards can still sue and possibly result in a judgment lien on real property.

Megan Anderson

7/18/2018 02:07:17 pm

What is the Division defense for District or Superior Court filing?

7/18/2018 05:11:48 pm

If a Plaintiff sues for more than $25,000 in District Court a motion to dismiss or remove to Superior Court may be appropriate. Not as relevant since NCGS 7A-243 was amended to increase the jurisdictional amount from $10,000 to $25,000 in District Court.

Tia Barbee

8/21/2018 06:33:14 am

What is one credit card debt collector who purchased my debt from synchrony bank, belks credit card, is saying they are taking me to court for debt my husband ran up and stoped paying. What kind of court will this be? Debt is $1,700. Total debt I'm in is $25,000 but it's not all with one bank. Whay can they do to me?

8/21/2018 03:07:09 pm

Was this card in your name? If so, they could file a lawsuit for a money judgment.

Carlos Javier Vera

12/28/2018 01:46:00 pm

I have been sued by Discover Bank in NC, I owed $5,132.85 and I offered to settle for $500.00 but attorney's office rejected my offer, they counter at $4,100.00 to be paid in a lump sum, I do not have the money available and they refused any other options. I have been talking to collectors from the attorney's office and not Discover direct. What can they do in NC if a judgment is granted?

Thanks

12/28/2018 01:58:42 pm

A $500 offer was basically a non-starter. Most banks want at least 30% and Discover usually wants 70%- and those are lump sum numbers. If the creditor obtains a judgment they can move to take your property or levy on your bank account subject to your claimed exemptions. Take a look at the following blog post:

https://www.swlawnc.com/notice-of-right-to-claim-exemptions-in-nc

Robert link

1/30/2019 10:39:59 pm

How can they levy your bank account if your basically living check to check ? The judge can’t possibly allow them to clean you out can he ? Wouldn’t he order abfeasible payment arrangement. I mean you can’t get blood from a stone and they can’t from my understanding garnish wages in NC.

1/31/2019 08:32:54 am

If you fail to claim any exemptions the creditor can take everything you own including the shirt off your back. The idea that a judge will set up a payment plan is a HUGE misconception- they have no authority to do so.

Kriza Feliciano link

12/31/2018 12:27:13 pm

Bank of America had the sheriff deliver a civil summoms complaint for my credit card debt of 12k and some. The last payment was last year december. I responded to the summons and agreed to the debt amount. I then received a letter stating a court date would be schediled in feb or march.
How can i fight this or what are my options? What would the outcome be?

12/31/2018 12:37:15 pm

If you owe the money then fighting and winning will not be easy. Can you offer some sort of settlement? Have you considered bankruptcy? What county is this lawsuit in?

Diana

1/9/2019 07:23:28 pm

What would be the most reasonable course of action for two married debtors who owe more in cc debt than they can possibly pay (over 100k), and are age 55 and judgment proof, and will be so for the future as well? We own no property other than a car with 90k miles, do not plan to own property in the future, and given our ages our financial situation will not improve. I'm not sure what good Bankruptcy would do us if we own nothing and have almost no money, not employed at this time due to health reasons. When we are re-employed, it will likely be part time with us barely being able to pay rent.

1/9/2019 07:35:55 pm

My advice would be to meet with a local bankruptcy attorney to hear about any pros or cons of filing bankruptcy that are specific to you. You may indeed be judgment proof now, but what about in the future? What if you inherit something? What about the potential of life insurance money? Some people decide to file bankruptcy just to stop the phone calls. At the very least bad credit can impact your car insurance rates and ability to rent an apartment. That being said, many people decide to never to file bankruptcy after deciding the pros are not worth the hassle.

1/9/2019 08:48:55 pm

No inheritance is possible, and we’ve had our current apartment for 10 years and plan to stay here. Also plan to keep the same auto insurance we’ve had for the past 18 years.

Just did some reading and I don’t think we’re willing at all to let a bankruptcy trustee decide whether we can stay in our current apartment or not. No, thanks. That’s our decision and we would not want our landlor involved because it’s our private financial business and we always pay rent on time. Woukd not want our landlord scared and informed that we were filing bankruptcy. Would not want where we live decided by a random bankruptcy trustee.

1/9/2019 10:07:32 pm

Not trying to recommend bankruptcy, but I have never heard of someone not being able to renew their lease simply because they filed bankruptcy.

1/9/2019 11:00:23 pm

Hi, it's not a question of "not being able to renew our lease". We have a good relationship with our landlord management company and they've kept our rent the same for the past 3 years because of our good standing. The last thing I would ever want to do is embarrass ourselves by having our landlord be served with paperwork about our personal and private business saying we cannot pay our other bills, especially when we've always paid on time. No one would want that! The part I read in the law abut a trustee being able to decide whether or not you could stay in your current apartment is an overreach of the bankruptcy's courts powers in my opinion, and one we don't want deciding whether we are able to keep our apartment. Really was shocked to read they have a say in that, and that landlords have to be informed of a person's private financial business.

1/10/2019 01:02:37 pm

plus, I just read this in several places, which is very concerning:

Virtually all leases contain provisions that say that if the tenant files bankruptcy, the lease is breached and the tenant can be evicted.

Even if that didn’t happen, it would create an extremely poor impression of us and our finances (which are private) to a management company that we have a solid relationship with. Just does not seem wise.

1/10/2019 01:49:31 pm

Not many landlords would want to evict a good tenant who is current on the rent. You are right though- filing a bankruptcy does open you up to unintended consequences..

Vincent

1/11/2019 07:38:12 pm

What does the original credit card company have to bring to court in order to prove it’s your debt?

1/11/2019 08:06:10 pm

The answer is not much unless you contest things. Sometimes a one page computer printout showing a balance owed with a verification page signed by a bank officer is enough.

1/11/2019 08:20:50 pm

So they don’t need anything signed by you not a contact not even a merchants slip ?

1/11/2019 08:47:09 pm

Many credit card transactions are all done online including the application process- so there is no signature. Most credit card transactions in person at the grocery store and fast food restaurants under $50 do not require a signature anymore. The banks take the position that use of the card constitutes acceptance of the terms of the contract.

1/11/2019 08:52:46 pm

How is this legal And how can someone fight this ?

1/11/2019 09:03:41 pm

How is what legal? Do you dispute making the charges? Do you dispute the interest and fees? Even without a contract there is a theory under the law known as "unjust enrichment" the bank could always fall back on as a means for recovery for at least the credit extended.

1/11/2019 09:17:59 pm

Ok so 58-70-150 only applies to debt collection company’s and not banks is there any other rules-where it states what the banks must have in order to prove that you owe the debt ?

1/11/2019 10:58:40 pm

Take a look at NCGS 8-45 which is often how the bank wins without anyone coming to court from the bank to testify.

8-45. Itemized and verified accounts.

In any actions instituted in any court of this State upon an account for goods sold and delivered, for rents, for services rendered, or labor performed, or upon any oral contract for money loaned, a verified itemized statement of such account shall be received in evidence, and shall be deemed prima facie evidence of its correctness.

The following also contains some analysis:
https://www.sog.unc.edu/sites/www.sog.unc.edu/files/course_materials/Credit%20Card%20Debt%20Cases%20Presentation.pdf

1/11/2019 11:02:58 pm

Thanks

Stacy

1/12/2019 02:42:19 pm

I am being sued by Midland funding for a $3600 credit card debit. Would it be more beneficial to go to court to answer for it or call Midland's representative to see about negotiating a settlement amount?

1/12/2019 03:33:15 pm

Is there a law firm involved- which one?

1/12/2019 03:39:36 pm

Yes there is. It's Smith, Debnam, Narron, Drake, Ssintsing, & Myers, LLP. Would that make a difference?

1/12/2019 03:51:40 pm

You would likely need to call the law firm at this point to negotiate a settlement. What can you afford to pay lump sum? Maybe try and offer $1,450 lump sum to see if they counter with a reasonable number. Make sure you file an extension of time and/or Answer denying the debt before the deadline or else they will be able to obtain a default judgment without a court date.

1/12/2019 03:57:19 pm

You would suggest responding to the court by denying the debt before the 30 days? Then reaching out the law firm to negotiate a settlement? Yes, I did see they would be able to obtain a default judgement if the time lapsed/ I didn't respond at all.

1/12/2019 04:02:25 pm

I would start with a 30 day extension of time to Answer the Complaint and any discovery they may have served with the Complaint. More and more collection firms are starting to serve discovery such as Requests for Admissions, Interrogatories, and Request for Production of Documents with the lawsuit, Negotiating a good settlement can take weeks of back and forth offers with the law firm support staff sometimes.

1/12/2019 04:10:44 pm

Okay. And the other documents are used as determinants. Thank you so much for your assistance. I really appreciate it!

Justin

2/5/2019 04:04:06 pm

Just received a Civil Summons today stating being sued by Bank of America, N.A in the matter of $2,855. They have an attorney of Glasser adn Glasser, P.L.C. I have 30 days to respond, what are the next steps I need to take as I have never experienced this before

2/5/2019 07:44:20 pm

What county was this case filed in? Your next move depends on what you are looking to do.

1. Settle?
2. Dispute the amount?
3. Go to court?
4. Set up payments?

2/6/2019 01:57:45 am

Wilkes county. The amount is correct, I would like to reach a settlement or set up payments if that is an option

2/6/2019 09:51:05 am

I would recommend contacting the law firm ASAP and making them an offer. You can also file an extension of time to Answer the lawsuit at the courthouse as settlement discussions take time.

Wendy link

2/8/2019 02:44:40 pm

I was contacted by a collection agency claiming I owe a credit card debt and I was told by them that the last activity was in 2011. I was told it was an HSBC debt which I didn’t have and the collector said it was probably another credit card company like Capital One or Orchard Bank. Nothing has ever appeared on my credit report and they are demanding immediate payment or I will be sued. What should I do? Thanks

2/8/2019 03:48:52 pm

Ask them to send you verification of the debt to start. Without that ask them to stop contacting you.

grant

2/22/2019 03:13:13 pm

just got the call that our Refi is on hold pending solution of a judgement lien place on our property for a credit card my wife let go 10 years ago. It expires 01-2021. What's the chances the collector will renew the lien another 10 years. Should I wait it out and see?? Or if most collector always renew for another 10 years.. Should I go ahead and negotiate it?? Just don't want to tip them off if most don't renew the lien for another 10 years.. ??

2/22/2019 04:26:40 pm

How is it a judgment lien if the house is in both names as tenancy by the entirety and the judgment is only against your wife? You never know if they will renew or not. How much is the judgment for after 8 years of interest?

2/22/2019 04:42:00 pm

deed is in both names but the mortgage is only in mine. The balance is 10k. I think it started at 6k, 8 years ago. I've looked on the deed records of the county I live in and cant find it?? The title search office called and asked me if this was my wife, that the lien was placed on the property, and had to be paid to continue the refi. The credit card debt was only in her name.

2/22/2019 04:52:05 pm

If the NC property is owned jointly as husband and wife then it should not be a judgment lien unless the judgment is against both of you. In that case you might be better off trying to wait it out rather than do a refinance. You could also try another lender who may not require the judgment be paid as part of the refinance.

2/22/2019 04:58:51 pm

I may be describing it wrong. I don't have the judgement on my credit. Just on hers. The lien was placed on the property that we both own, because of her bad c/c debt (judgement). The refi is in my name only. Should this be holding up my refi?? They say that when the current mortgage is paid off it places the lien for the bad debt next or 1st and putting the new mortgage company 2nd..

2/22/2019 05:07:12 pm

It should not be a lien on jointly owned property. That being said, many lenders insist all judgments paid before they are interested in a refinance. Maybe try some other lenders to see if you can find one that will do a refinance without paying off the judgment.

Grant

2/25/2019 02:38:21 pm

I contacted the clerk of court to find about about the judgment lien. They tell me they only file the Judgement on the persons name, not the property. The title search company is attaching it to the property based it being in the same name as the judgement. Does this makes since?

2/25/2019 02:47:59 pm

Should not be a lien. I would try a new refinance company.

Chris

3/7/2019 01:51:54 pm

I have an old Credit Card debt from 2007 that was bought by Unifund. They have the wrong name (middle initial)on the judgement that they obtained. They just recently renewed the judgement. Can I fight this in court asking them for proof that the debt belongs to me? They contact me once a year with an offer to settle, other than that no collection activity.

3/7/2019 02:12:52 pm

You certainly could have challenged the debt in court before a judge. Not sure what you can do at this point after a judgment has already been entered and the appeal period has passed..

Ellyn

3/27/2019 11:43:01 pm

If I have minimum income that is barely enough to pay my rent and food, they cannot take that, can they? I know I have to file exemptions, but wanted to know what income levels put me in judgment proof category. I do not own any property and don’t plan to, age 60.

3/28/2019 08:58:57 am

Exemptions must be claimed or else they are waived. Make sure you list your bank accounts and use the proper exemption!

3/28/2019 10:12:07 am

Yes, but what level of income is allowed? We barely make enough to pay rent and buy food.

3/28/2019 10:18:33 am

The forms have instructions with the exemption limits and rules. You can also read the following blog article or meet with an attorney for more information:

https://www.swlawnc.com/notice-of-right-to-claim-exemptions-in-nc.html

3/28/2019 01:27:26 pm

Yes, the exemption form is helpful. When do we get asked about income, though? How do we know if we are making more than they consider reasonable ( even though it barely pays our rent and food)

3/28/2019 02:03:46 pm

Earnings in the last 60 days can only be claimed if you have dependents such as children or a spouse. The exact dollar amount of "reasonable" earnings has not been defined by statute or caselaw.

Edward

3/28/2019 01:31:05 pm

Hi, Jason. Can you list the steps as they happen in a suit/ judgment to provide a kind of road map for us of what to do and in what order to expect things?

In other words, is it:

1) get served
2) file answer, but mot exemptions yet
3) wait for court date
4) if judgment is awarded at court date, 20 days after judgment awarded to file exemptions? ( just trying to figure out what point in process that exemptions get filed)

3/28/2019 02:01:51 pm

Exemptions are only filed after a judgment is entered and the creditor elects to send out your notice of right to claim exemptions.

4/2/2019 08:56:53 am

Hi I received a notice of right to have exceptions designated on 3/8/19 and I kind of feel like I should have filled this out. It stated I had 20 days to fill it out is it too late?

4/2/2019 09:48:47 am

You missed the filing deadline. I would remove cash from the bank as that is often the first place a creditor sends the Sheriff. Do you have other assets you may lose- if so you may want to consult an attorney.

Susan

4/4/2019 01:07:22 pm

I have two judgements at our county office (Gaston), one from Ford and one from Discover. Both were given by default and only in my name (not a joint debt). I own a home still with my husband, we are separated not divorced, and were separated shortly after these debts were incurred. We have $70K in equity. Neither of us have filed for bankruptcy.
The house is currently in foreclosure initiation. We have a buyer and closing May 1. The bank signed over a substitute trustee to a law firm in Feb.
My questions are:
1.Can the two creditors take the equity during closing? Our closing attorney said yes. I have not received a notice of right to exemptions from the creidtor nor has a sheriff delivered anything stating they are claiming my property to repay the debt.

2. Can I file a motion to exempt my property in the Gaston Co courthouse WITHOUT having been served a notice of a right to exempt my property?

4/4/2019 02:09:13 pm

1. If the house is in joint name as tenancy by the entirety I would find a different closing attorney.

2. Never heard of filing a motion to exempt property if no notice of right to claim exemptions as been filed.

3. You should also speak with a divorce attorney as well or else your husband may get half the house proceeds without paying towards any of those judgments.

Mike

4/4/2019 11:29:17 pm

My wife has 2 separate judgements, both with citibank. One judgement is 10 years old and was just renewed for about $9,000, the other judgement is 9 years old and the amount owed is about $18,000. They are both with Bernhardt and Strawser in Charlotte NC. She is not employed and no assets are in her name. We live in NC and the sheriff has come out in both instances about 3-4 years ago to check on assets and both times reported back that she doesn't have anything. That said, what are our options here? Should we just let them both lapse since there are no assets for them to get and in NC they can only renew 1 time? Or should I try to settle using funds from my accounts?

4/5/2019 09:07:41 am

I would recommend meeting with a bankruptcy lawyer to discuss all your options.

4/5/2019 09:37:38 am

So you would not recommend me calling and trying to settle? Also, why would we file bankruptcy if she has no assets to protect?

4/5/2019 10:55:37 am

She has over $25k worth of judgments and often 50 cents on the dollar is a good settlement for judgments. Do you have $12k lump sum to pay the judgments at this time? Not much point in paying one, but not the other. You also need to be prepared for any 1099 for the difference between what you paid and the current balance.

4/5/2019 03:41:16 pm

Let me ask it this way, what happens if we do nothing? She has no assets in her name, no job, short of the sheriff coming a few more times I just don't understand what consequences still remain that would need bankruptcy. I understand from a moral obligation that we should pay, but from a legal standpoint what else can they really do? Thanks for all your help in this!

4/5/2019 04:40:25 pm

The great thing about having nothing is nobody can take it from you. The NC Constitution outlaws debtors' prison. So no cars have her name on the title? Make sure her name is not on your bank account or else they may take your money.

Lucero

4/13/2019 09:10:30 pm

Hello, How do I find out a lawsuit on my name online? or if I have been sued by my creditors? I live in Marble, NC (28905)
Thank you

4/13/2019 09:41:03 pm

NC does not have online access to state court records. You would have to call or visit each county courthouse to see if any lawsuits have been filed against you in a particular county. That being said, if you were sued you would generally be served via sheriff or certified mail.

Gina

4/25/2019 04:39:29 pm

I have LVNV collecting a debt for HSN for 1456.80. I do not agree with the amount they have. I have sent in a validation letter. I know eventually they will sue. I own nothing and do not have a job to pay. Everything is in husbands name. We have a home but unfortunately my name is not on deed only deed of trust. It has my husband name a married man. Can they come after the house even though my name isn’t on it. Should we put my name on it for the protection of tendency by entirety?

4/25/2019 05:02:07 pm

If you are not on the deed then you are not an owner outside of a potential marital interest.

4/25/2019 07:13:20 pm

What does potential marital interest mean?

4/25/2019 07:26:26 pm

You could have a marital interest in divorce court or via inheritance.

4/26/2019 02:40:41 pm

If a judgment is obtained and I am not on the title of the cars or the house is there a place on the NC exceptions that I put that? I know you can put up to 35,000 in equity but if I dont own the home do I just leave it blank?

4/26/2019 03:02:41 pm

You generally only list items you have an ownership interest in on the exemption forms.

kyra johnson

4/29/2019 08:58:26 am

Once a civil summons has been delivered. Would it be beneficial to go to the original creditor to discuss debt and payments.

4/29/2019 09:23:12 am

Once a lawsuit has been filed many creditors prefer to have the law firm handle all settlement discussions.

Tom L.

5/6/2019 06:50:46 pm

I was served with a Civil Judgement from Smith Debnam for $10k in cc debt. I have no real estate, have experienced long term unemployment since 2018 and have nothing that can be taken/sold to pay them, thus, I’m judgement proof and poor. I need to file bankruptcy but have no money to do so at this time. What should my response “answer” be to the judgement if the only discrepancy I see is the actual amount owed? Does it even matter if I respond at all given I cannot pay, cannot file bankruptcy at this time, and I’m judgement proof? I see a lot of sites saying to always respond to a judgement but I never see an answer for those in my exact predicament as it relates to having the only dispute as to the amount owed, if that dispute at all.

5/6/2019 07:25:04 pm

You can always file an answer and deny the allegation as to the amount owed. You can take a look at this sample answer- be aware filing a counterclaim generally requires a $150 filing fee so you may want to remove that portion. If you need to file bankruptcy and have no money you should contact your local legal aid office.

https://www.lawhelpnc.org/files/CF76DC62-D528-7183-3117-39472C017826/attachments/EEE12AB7-E5BB-4C37-A13C-2167AE97848B/general-answer-sample.pdf

5/7/2019 11:04:47 am

Thanks Attorney Witt for the link and info. I contacted my state's legal aid office a week ago and they guided me on what to expect given my current situation with the judgement which is much of what I've already read on the web.

If I use the pdf you mentioned as a guide, what verbiage should I use as to the reason for my answer of the amount in dispute? I'm confused about that part.

Also, am I requesting any further documents from their attorney to prove the amount?

5/7/2019 12:39:18 pm

The most crucial element of the Answer should be to simply deny the amount owed and ask for hearing- maybe even a jury trial.

Stacie Kinlaw

5/10/2019 12:50:15 pm

I have been served summons from same law firm. I am prepared to pay debt in installments for 3 years; called the law office and was basically told that in order to establish this payment arrangement I could sign consent to judgement and not wait for court date...3 Questions 1) Do I still respond to the summons even if I already sign consent? 2) What are the consequences of a "judgement" and 3) if required to respond - would i just admit to all paragraphs???
JUST FYI - my debt was from discover card in the amount of $7180...

5/10/2019 01:28:58 pm

If you have a deal in writing you would simply need to make sure you understand and can comply with the terms of your agreement. A Confession of Judgment is generally not filed with the court unless you miss payments- your written agreement should address this point.

Aaron

5/9/2019 04:28:37 pm

I was just contacted by a company I've never heard of saying they are going to take me to court over a $2000 credit card that was opened in 2007 using my name and social. They said the last payment was made on 2014 using a debit card. I didn't even have a bank account in 2014 and haven't had a credit card since 1999. They say they are going to have a sheriff deliver me a summons to appear In court. 2014 to 2019 is 5 years way outside of the 3 year sol. Are they just trying to scare me into paying?

5/9/2019 05:51:19 pm

No way to know at this point, but obviously if you aren't served via the Sheriff shortly they were lying.

Jevon Daniel

6/5/2019 04:36:39 pm

An account was opened thru radio shack in the late 90's a collection agency has contacted me within the past 2 weeks telling me I owe 900.00 or go to court . Talking to the guy today said the account was closed in 2004 I live in NC can they still collect off that . Statue of limitations say in NC you have 3 years to collect a debt. Not understanding

6/5/2019 04:39:19 pm

The statute of limitations is an affirmative defense in NC meaning it must be plead as a defense in your written Answer to a lawsuit or else that defense is waived.

Bruce

6/9/2019 07:12:10 am

I have approximately 3 creditors with a total debt of 8K. The accounts are all past due and are in collection. I have not been sued yet. I’m married, and a NC resident. I’m unemployed due to medical issues, and obtained that debt during that period. I currently have nothing in my name (bank account, car, home). Can my spouse be legally sued or held responsible for this debt? The cards were completely in my name. We have been married for 20 years, reside together, with children. Any advice this early on would be helpful. I do not foresee any way to pay this debt in future as well. Gross family income less than 35K annual. Thanks.

6/9/2019 11:06:25 am

Medical debt can be considered joint debt for spouses, but unless she is on your credit cards she should not be responsible for those.

Jamie

6/17/2019 12:07:22 pm

I had a BOA card my husband ran up back in 2014-2015 that defaulted as I was a stay at home mom. Well never heard anything from BOA until 11/2017 and was served by sheriff. We responded appropriately to the clerk of court and nothing happened again until two weeks ago when we received a packet from BOA lawyers about taking me to court. This past Friday I received a court date from the Clerk of Court in the mail with my court date to appear in Ciivil Court for a “motion for summary judgment”. Well now that I look at the verification we requested in 2017 the last payment was 11/13/2015... so my question is how can the even seek a judgment when the statute of limitations has ran out? Should I go to court and fight it or attempt to settle? If I call them and ask about settling will that start the SOL over? Thanks

6/17/2019 12:28:59 pm

The statute of limitations is an affirmative defense that must be raised or else the defense is waived. The statute of limitations for contract cases is generally 3 years in NC. When was the lawsuit filed?

Dave

8/9/2019 10:37:12 pm

I just received a letter from Cooling and Winter regarding a Bank of America card that I stopped paying on over 10 years ago. Current owed is about 8500. Original debt was around 5k. There was a previous judgement on the debt and the letter I just got looks similar to ones I’ve gotten in the past. The standard “unless you notify this office within in 30 days to dispute this debt...”. In the past I just ignored these and have been visited by sheriffs who left empty handed as I own very little. House and cars in wife’s name. Not much cash in personal accounts.

My question is if I dispute this stating the statute of limitations has run out despite having a previous judgement will this help or has that ship sailed as I failed to respond to these letters in the past. I have made no payments of any kind in a very long time to this and a few other cards.

Thank you for any insight provided.

8/10/2019 10:21:09 am

A judgment in NC is good for 10 years and can be renewed 1 time for an additional 10 year period.

Heather

8/12/2019 08:55:33 pm

Out of the blue today, I have someone calling me stating I owe a money from a credit card in 2005 that was closed in 2006. I have never received any paperwork or been served for this debt. The guy on the phone stated there was something called tolling that allowed companies basically forever to sue me. I also just found out they have called family members of mine as well. Isn't this after the 3 year statute of limitations?

8/12/2019 09:05:10 pm

If signed under SEAL the statute of limitations can be 10 years in NC.Not sure what tolling grounds he may be referring to in your situation. There is a decent chance they are just trying to scare some money out of you at this point. Be aware that making any payment could reset the statute of limitations.

Caroline

8/20/2019 08:44:40 pm

My father stopped working at the end of last year due to having a heart attack, being diagnosed with cancer, and having other medical complications. He was eventually terminated from his employer due to his illness and we are now in the process of applying for disability for him. He was served today for a wells fargo credit card of 16k that he stopped paying since he became ill which was less than 8 months ago. This is his only credit card and we have reached out to Brock and Scott a few times before he was served to settle a payment plan but what they offered were too high for us to pay monthly. My father's only income now is his long term disability and he currently has no health insurance so we are having to use that money for his medical needs such as having to pay front up for all doctors' visits. My question is, if it gets to the worst, what can they take away from him? My parents' house is paid off and it's under both of their names. The credit card is only in my father's name. He does have 2 older cars that are paid off which are in his name as well. My main concern right now is having the house taken away which will result in them being homeless. They reside in Catawba County in North Carolina. Any advice or suggestions will be greatly appreciated. Thank you in advance.

8/20/2019 09:29:33 pm

Hopefully the house is exempt via Tenancy by the Entirety, but obviously that could be severed at any time if his wife passed away. My advice is locate a local bankruptcy attorney for a consultation. Many offer a free consultation and can analyze his current and future exposure to creditors.

9/4/2019 11:52:03 am

Thank you for your response. The summons letter talks about a written answer to the complaint within 30 days. What should this letter be about? Who can write this letter? An attorney? The summons also did not indicate a date for court. What happens after the 30 days?

9/4/2019 02:08:15 pm

You really should consult with an attorney to help you file a written Answer with the court. Failure to file an Answer allows the plaintiff to obtain a default judgment after 30 days without a hearing. Filing an inadequate Answer asking for more time to pay or for a reasonable payment schedule is akin to admitting the debt. You really need to have an attorney help you prepare an Answer raising any possible defenses, denying the debt, and asking for a hearing.

Cassie smith

9/12/2019 06:41:39 pm

I got a sheriff deliver a paper, saying discover is suing me and I have to respond in 30 days. I can't remember last time that card was used, the limit was 3000 and the amount on the paper is 3446. Should i try to make a payment arrangement before answering or should i responding denying the debt?

Also I'm married and my name is on the auto loan but not the title of the car, can they do something about the car and my salary if I deny the debt?

9/12/2019 06:57:23 pm

You need to meet or at least speak with an attorney- ideally a local attorney. What county is this lawsuit filed in?

Maria

9/25/2019 07:45:49 pm

My husband received a Mecklenburg county civil action “complaint” (law suit) from Bank of America for cc debt of $23k. We stopped paying the cc due to illness and loss of income. We own a house under both our names but mortgage is only under his name and 2 vehicles one paid off and worth about $7k and one still being paid. He also co-owns a business in FL with a family member and the business has a bank account that maintains $30-45k
Our kids have CDs worth $30k and we have a joint bank account with approximately $1500. What are our options here? He doesn’t want to file for bankruptcy because he is afraid it’ll harm the business he co-owns and thus his business partner. Can our house or our children’s CDs be taken away?

9/25/2019 08:04:57 pm

It is best not to let this go to judgment. Judgments are good for 10 years in NC and can be renewed for an additional 10 years. In addition judgments accrue at 8% interest per year meaning this 23k debt could push towards $60k in 20 years! Can he not afford anything as far as a reduced lump sum settlement or monthly payments of some amount? Any bank account with his name on it as an owner is potentially vulnerable so if his name is on a business bank account with $30k that is a major issue. The same problem may exist with a custodial bank account for your kids if he is on the account.

Marsha

10/11/2019 06:28:22 pm

Apparently a notice of right to designate exemptions was dropped off at my house...given to a child at my home, who then put it in a pile of papers. This has been more than 20 days from the date on paper. There is no address listed as to where to mail it. Is that legal?

10/11/2019 06:54:23 pm

Given to a child by a Sheriff? How old is the child?

10/11/2019 07:09:02 pm

He is 18 on autism spectrum(high functioning) but not responsible. Looks like back of cover page is supposed to be signed that I received it.

10/11/2019 07:15:59 pm

An 18 year old is considered an adult in NC. The Sheriff will sign the back and date when he submits to the court. When did the Sheriff drop off the paperwork? The file stamp date on the front is when it was filed at the courthouse- not when it was delivered by the Sheriff. Your copy will not have the service date stamped or written anywhere, but it is likely a day to a few days after the file stamped date on the front.

10/11/2019 07:24:58 pm

Handwritten date of 9/23 with a name. No stamped date. There is no address to mail papers. The section is left blank

10/11/2019 07:31:19 pm

Sounds like you might be missing the cover page if nothing is file stamped. If service was 9-23-19 you would need to have your exemptions filed by Monday or else they may be waived. You need verify the service date at the courthouse and meet with an attorney to help you fill them out ASAP. What county are you in?

10/11/2019 07:43:58 pm

Forsyth

10/11/2019 07:49:43 pm

I only practice in Union county and Mecklenburg county. It would be ideal to have a local attorney, but finding one last minute might be difficult to impossible. We could set up a phone consult for either Saturday or Sunday to assist in filling out your exemptions and there would be a $100 consultation fee. If you are interested in the phone consult please email me directly using the quick contact form at the bottom of the page.

NaTasha

10/18/2019 06:44:00 pm

I am being sued by Midland. A summons was dropped off at my old address and I no longer reside at that address or the county where the summons was filed. Smith, Debman, and several others is the law firm representing midland. I need to file an extension due to getting this summons late because I’m no longer at that address. Where do I file for the extension? Would it be at the County the summons was filed in or the County where I actually reside?

10/18/2019 06:51:34 pm

The extension of time would have to e filed in the county where the lawsuit was filed, which may or may not be the same county where it was served. Check the Summons or first page of the Complaint- the county name should be in the upper left corner.

10/22/2019 07:22:13 pm

Thank you!!! I want to go ahead settle. At this point, am I still able to negotiate with the law firm? The amount is $1300, what should I offer? If we come to an agreement, do I wait until I receive the offer in writing? Are there any specific things I need to ask for in writing if we decide to settle? Sorry for so many questions. Thanks so much.

10/22/2019 07:32:55 pm

You would call the law firm to make an offer. There is not much wiggle room on a $1,300 debt where they also paid $150 to file the lawsuit and another $30 to have you served by Sheriff, not to mention whatever the law firm is charging the bank. Make sure you get any offer in writing before sending money.

Brandi

11/4/2019 05:46:49 pm

I was served last month for a cc debt from Citibank for just over $5000. I answered back and filed it and asked if I could pay 40% of the debt with $500 now and payments of at least $50 a month thereafter. Well today I received a letter with a court date for April of next year. I have not had a job since 2010 and have nothing in my name except for my husband’s work van which can be easily switched to his name. We have a joint bank account for bill purposes and our house is in both our names. I contacted the lawyer again to see if I could meet with them to discuss some kind of payment arrangement outside of court as I can’t afford a lawyer but I will probably not receive a reply just like the previous messages I have sent. What advice would you offer? I live in Mecklenburg County
Thank you

11/4/2019 06:52:31 pm

For specific legal advice I would recommend consulting with an attorney. We do offer a $100 consultation if you are interested. Short of that I would continue contacting the law firm in an attempt to settle, but keep in mind if you are trying to reduce the debt by 50% or more creditors generally want a lump sum settlement.

Shanye

1/21/2020 08:45:45 pm

Hi,

I’m being sued by American Express and they have attorney representing them. I was told by another attorney that there is no need to argue in court at this point and there are certain things I may be able to file exemptions on. Is this true?

1/22/2020 09:03:57 am

Would you not prefer to settle the account or file bankruptcy rather than allow a judgment to be entered against you?

Rex Curtis Hunter

2/21/2020 04:13:27 pm

I'm being sued by HSBC for $3650. Account closed 2009. The firm that contacted me today said that sent a courier which is false. I work out of my home and no courier has ever shown up. I thought the legal statue was 3 years not to exceed 10 years on the state of NC. When the financial crisis happened I lost everything and moved from Charlotte to SC. I've paid off all of my other cards and have managed to somewhat rebuild my credit. Ive been told that I'll be sent a summons on the mail. Is this possible after 11 years ?

2/21/2020 06:54:24 pm

If a collection firm lied about sending a courier they are probably lying about sending a summons in the mail. That being said, the statute of limitation is an affirmative defense that must be raised or else that defense is waived.

Sylvia Simms

4/19/2020 12:57:58 am

Husband has over $5k in credit card debt that is over 2 years old. He is disabled with only income being his disability check. He has no house or car in his name. The only bank account in his name is for his disability checks only. He has been receiving the usual calls and letters trying to get him to settle but he has no money to pay. It is my understanding that they cannot touch the house or car which are in my name only. Once we are served, assuming we will be, what is your advice.

4/19/2020 10:31:30 pm

The great thing about having nothing is nobody can take it from you. For that small amount of money it may be worth trying to settle if a lawsuit is eventually filed.

Marie

6/2/2020 03:26:20 pm

Good afternoon. I was served with a civil suit for approximately $4500 by a law firm on behalf of the plaintiff Barclays in District court in March of this year about a week prior to the closure of N.C. courts due to Covid-19 and filed my answer denying all of the claims in the suit except for my residency and not a minor. I raised the affirmative defense of lack of subject matter jurisdiction due to the card agreement contract containing a private arbitration clause that I have elected to exercise therefore the court does not have jurisdiction to hear the matter. At the same time I also filed a motion to compel private arbitration pursuant to Rule 7 of the NC Rules of civil procedure stating the grounds for making the motion based on the terms and conditions of the credit card agreement and referenced the pertinent verbiage from said agreement and attached the full card agreement as an exhibit to the motion and declared that I elect arbitration to settle the dispute and requested relief by moving for the court to compel private arbitration pursuant to the agreement and to dismiss the complaint due to lack of subject matter jurisdiction or alternatively to stay proceedings pending arbitration.

I am not opposed to settling this for less than the full amount so I don’t have a judgement looming over me. I need to know at this point what the best course of action is. I filed the motion To compel but how do I get it calendared or will it be heard when the plaintiff schedules a hearing since I am disputing the debt? At what point do I have the best chance of settling the debt for 50% or less? The answer and motion was filed last week before the courts extend filing deadline due to COVID. Thank you for your help. It’s been over 2 1/2 yrs since the last alleged payment was made on the alleged debt.

6/2/2020 03:58:54 pm

If your goal is to settle I would recommend calling the law firm now and proposing 30% or so as a lump sum settlement. For specific legal advice about calendaring in your county I would recommend speaking with a local attorney.

6/2/2020 05:12:36 pm

Thank you. I will make a settlement proposal for a lump sum of 30% of the outstanding debt and see if they bite or counter. I’m hoping with the current economic crisis due to the pandemic motivates creditors to settle since the courts will be so backlogged.

6/15/2020 09:50:47 pm

I made an offer and just got a letter that they would accept it. Since they had already filed suit, what do I need to request from them to prevent being sued again for the remaining debt since I’m paying less than the full balance in settlement? Do I need something from them stating they agree to dismiss their civil suit against me with prejudice?

6/16/2020 02:42:11 pm

You can certainly request language be included in the settlement letter that the lawsuit be dismissed if you feel the current letter is not adequate.

Jennie Peeler

7/13/2020 10:25:42 am

I have a debt from Synchrony Bank in the amount of 4,900. I got behind on payments due to loss of employment and the debt was turned over to Smith Debnam law firm. They are wanting me to sign a consent to judgement to set up a payment plan. I am feeling very uneasy about this. If I can somehow come up with the funds to pay the entire balance would this be a better solution than essentially signing a judgement for payments. If I am able to come up with the funds how should I proceed in paying them so that we are no longer harassed and threatened by them.

7/13/2020 03:22:01 pm

See if they will accept a 30% lump sum settlement or file an extension of time and/or Answer to buy yourself some more time to negotiate.

Irena Zaal link

8/5/2020 03:55:46 pm

I defaulted on a citi/costco card and had a balance of $5406.86. Citi sold it to Cavalry and Cavalry had it assigned to Cawley and Bergmann attorneys. When Cawley and Bergmann refused to settle with me for a 10% or come back at me with a counter offer, Cavalry took it back from them and now has my case in their consumer affairs department, is what i am told, because of the fact that i am disputing it. Because they took it back from the attorney it was initially assigned to does that mean they don't intend to sue me? They also said they had sent me documents in the mail to prove this debt and i have not received anything. This was a week ago. As far as I know they have not sued me. However, I saw on this page according to NCGS 58-70-115 they should send me a letter 30 days before filing suit if that is their intention. Can they file suit without sending this notice to me? If they do do this is that an opportunity for me do counterclaim in court and to ask for a dismissal on the basis of them being in violation of this rule? I also upped my offer to Calvary from 10% to 20% and they came back at me with 55% which i am unable to do. thank you for your time and any advise you are willing to share with me.

Jason D Witt

8/5/2020 08:41:22 pm

Many collection agencies use one firm to write demand letters to everyone located throughout the country then hire local counsel to actually file suit. Cawley and Bergman appears to be located in NJ so they likely have no NC attorneys. Bottom line- there is no way to know if you are going to be sued or not.

Pamela

9/10/2020 11:40:36 pm

I received certified papers by mail from midlaind credit much like many others here. I have a charge off through synchrony bank and now midland in threatening me with court. I am disabled on SS&SSI. This is my only income. I can't afford to pay midland and don't want a judgment. I also have no house or car in my name. What is my next step. Thanks in advance.

9/11/2020 07:14:41 pm

If you received certified papers that means it is probably a lawsuit and you are now on the clock giving you 30 days to respond or else they can apply for a default judgment. A good idea at this point is to call a local attorney and discuss your options such as bankruptcy, settlement, filing a written Answer in court, or asset protection.

Jessica

10/8/2020 10:45:10 am

I received a notice in July that Sessom's and Rogers (hand delivered by Sherriff) on behalf of Unifund who I am guessing bought the debt they say I owe. I contacted them and asked to see full reports on all money used on that credit card so I could make sure the amount of 1,184.00 was correct. *side note* I hadn't received any mail, emails, etc...regarding this debt at all until the Sherriff knocked on the door. So after contacting them and hearing absolutely nothing I received a letter in mail that if I signed paper and agreed to debt, also agreeing to payments every month starting in September 2020 then the judgement wouldn't move forward. Well in the midst of this pandemic(and having to self quarantine two times because people I had had contact with tested positive), and homeschooling I honestly forgot about the cut off day. Today I received letter stating they are going for default judgement. My question is what happens after they get default judgment when I have nothing in my name and our home is in my husbands name I am just on the deed. My vehicle is my husband and my name and still has payments every month? What can they get?

10/8/2020 03:04:30 pm

After they obtain a default judgment you will likely receive what is called your Notice of Right to Claim Exemptions. Failure to fill these out and file at the courthouse in 20 days will allow them to take anything you own or to go to your bank and withdraw money. Take a look at this blog article for further information:

https://www.swlawnc.com/notice-of-right-to-claim-exemptions-in-nc.html

Nancy C Davis

10/9/2020 01:34:18 pm

I have a credit card debt with Capital One I haven't been able to make payment since March 2018. I received a letter from a law firm stating that they have been retain for collection on the debt. But the request for collection is from a company I've never heard of. Letter stated I have 30 days to respond. I sent a letter asking for verification on supposedly claim by Midland Credit Management. Letter states Midland purchased debt. I have no records of this or when purchased.
My husband was out of work due to illness in 2017 and once he returned to work he was let go shortly after. He did not get a steady job till fall of 2018 and all debt owed was left upon me. I receive only Social security disability benefits. I tried to work something out with Capital One back then but never return my calls. I don't know what my option are , is there any advice you can give me.

10/9/2020 02:20:51 pm

How much debt is owed? Do you have other credit cards debts waiting to sue you next? Can you perhaps offer 30 cents on the dollar lump sum? If so- you could call the law firm and make an offer.

Michelle

3/3/2021 12:30:47 pm

If the CC company gets the judgement, will they after the fact accept a payment plan or do they usually always go after assets?

3/3/2021 03:43:10 pm

They might, but unless you have assets exposed you may want to consider just saving up to make a lump sum settlement offer.

Marilynn

5/17/2021 01:03:48 pm

I been serviced with civil summon for debt owned to Navy Federal Credit Union on a credit card in an amount of 9900. I lost a large portion of income in 2018 and was unable to continue making payment on just my social security alone after a (4) month lost of alimony. I have since had a portion of my alimony payment restored. However being in receipt of both payment totals less than 19k per year. I own a 99 Lexus vehicle free and clear. How does NC Gen Stat 1C-1601 apply to my situation since the income I received falls under the exempt status for debt collections.

5/17/2021 02:11:38 pm

You only fill out your exemptions after the creditor obtains a judgment and serves you with your notice of right to claim exemptions. Whether they can take any of your assets depends on what you own.

You really should try and speak with a local attorney ASAP before this becomes a judgment to see if settlement is an option or to at least discuss asset protection before they obtain a judgment. Be advised a judgment accrues at 8% interest annually meaning it essentially doubles in 10 years. If you cannot locate a local attorney my office offers phone consults for $100.

Tina

5/17/2021 04:23:04 pm

I received a default judgment 10 years ago from Citibank, South Dakota that was to lapse next month. Saturday the sheriff showed up with a civil summons. Is this considered activating the judgment for one more time? Bernard and Strasser are the attorneys, however it appears that the debt may have been sold to someone in Missouri. This all happened so long ago when the economy tanked and I was fighting to save my house. I did fill out an exemption form, but did not list my bank account, because the form doesn’t ask that. I’m unclear how to proceed. Should I ask the Missouri guy to produce the debt documents, or do I contact the attorneys? The original amount was $2925.80 and with interest, fees, etc is now $4398.70. I assume I answer this with the clerk of court first, but then what? 10 years? I can’t even believe this! Thank you in advance for a reply.

5/17/2021 06:54:00 pm

Were you served with your motion to claim exemption or a new Complaint to renew the judgment? A judgment can be renewed 1 time for an additional 10 year period. The exemption forms don't list a place for bank accounts- you are just supposed to know to list them somehow. My advice at this point is speak with a local attorney and don't keep much money in the bank as the Sheriff may go there next.

5/18/2021 10:03:25 am

I filed the exemption list in 2016 from the first judgment of 2011. Saturday I got a civil summons which I guess is the second and final judgment. Do I have 30 days from my receipt of that to answer, because the stamped date was two weeks ago, April 29. Also, this Missouri guy wasn’t on the first judgement. And what happens in 10 years if I let this second judgment go through? Do these people ever go away?

5/18/2021 10:28:24 am

You have 30 days after receipt of a Complaint to file an Answer at the Courthouse- never seen anyone ever try and defend a judgment renewal before. At the moment a judgment can only be renewed 1 time for an additional 10 year period in NC unless they change the law in the future. Make sure you fill out new exemptions within 20 days of receipt each and every time you receive them.

5/18/2021 11:37:59 am

Lol..that’s funny! I’m a hard one, Jason. My defense would be, who is this Missouri guy? At this point, I feel like I need to take one for the team and be the poster child and wear them down for another 10 years! Lol. Do you know anybody over at Strasser? Maybe have a cup of coffee with them and see if they can give a struggling self employed empty nester a break? Can they mess with my business account or just personal? It wasn’t a business card. Thank you Jason!

5/18/2021 02:04:04 pm

Most debt collectors aren't interested in giving breaks. If the law allowed it many would ask the court to sell your kidney to pay the amount owed. Most states allow wage garnishment for credit card debt.

LaRena

5/29/2021 03:32:07 am

I received notification from Sessoms & Rogers regarding a cc debt taken over by Portfolio Recoveries in the amount of $730. I responded to the notification citing statute of limitations had passed, to which they responded that the statute of limitations had not passed because my last payment was made August 2017 and they filed July 2017. I have no way of proving when my last payment was because I had since closed that account and have no information left from it. Now I received a notice of hearing letter for hearing on June 7, 2021, should I actually go to the hearing or just let them file the judgement? I have a car, but still make payments on it, and I own my home but still pay a mortgage. I don't have anything else that they can "take" because I am awaiting disability and have no other income coming into the home. I guess I am trying to get the best advice as to what would be my best course of action. I read in other posts about an exemption that can be filed after judgement is made. I am so confused.

5/29/2021 09:54:18 am

For specific legal advice you will need a consultation with an attorney. If you cannot find a local attorney my office offers phone consults for $100.

Sherr

7/23/2021 08:31:05 am

I received a summons over a Target credit card for 2100. I am a stay at home mom and make no money of my own. Our home is owned together but only my husband is on the mortgage. My husband owns our vehicles. We have a joint bank account but all the money in it is from his paychecks. Should I file an extension to try and figure out what to do? I cannot pay this debt right now. I just don’t want my husband’s money taken as it’s how we support our children and live.

7/23/2021 11:42:12 am

Filing for an extension is a good start. Can you afford monthly payments of any amount? If not- then settlement is not really an option? Do you have other debts? Have you considered bankruptcy?

Heather Sinc

8/21/2021 12:59:10 am

I was sued by Smith Debnam Law Firm out of Raleigh. They are tough! They disputed my exemptions and I went back to court. The judge has stricken in it's entirety "any and all property described under number eight". This is my state employees Credit Union checking and savings accounts. Additionally, all bank account information detailed under number 13 shall be stricken and its entirety as there is not proper identifying account information and the bank accounts listed are for retirement purposes which cannot be seized by the plaintiff under North Carolina law. I have several questions concerning this because I own a great deal of land jointly with my brother. I own my own residence in my name only however I am married. I have questions about how the lien works and what my options are since I already have a judgment. Are you available? I will gladly pay a consultation fee. Thank you so much.

8/21/2021 09:35:56 am

I would be happy to set up a phone consult to discuss your exemptions under NC law- there would be a $100 consult fee.

Kelly

11/4/2021 03:28:25 pm

I have a credit card judgement that did not renew at 10 years which was Sept 2020. Why is it still listed in my records at the courthouse and still accruing interest? Also, I have a judgement that will be 10 years on 1/31/23. A collection agency mail a notice on 6/4/2020. Does the 10 years now start over from 6/2020?

11/4/2021 03:45:27 pm

The courthouse does not remove judgments simply because they expired. A judgment is good for 10 years in NC unless it is renewed- simply mailing a notice does not renew a judgment. A renewal requires a new court order.

kelly

11/4/2021 04:02:58 pm

ok, makes sense. Thanks. One more question, I had two active judgements filed (under the 10 year) and the title company only picked one up when in underwriting for a mortgage. Why would both active judgements not appear?

11/4/2021 07:06:56 pm

That is hard to say without knowing more. Perhaps the title searcher made an error. Perhaps the judgment is under the wrong name. Perhaps you are married and tenancy by the entirities applies. Could be another reason altogether.

11/15/2021 12:24:53 pm

With the answers above, now I would like to know if I should do a consultation or if there is no need. I want to buy a house and clear my judgements. Easy answer is, negotiate with each one and pay; however, 1. only one (of three total) showed up in underwriting when I was in the process of buying a house , so do I just pay that one 2. One of the judgements hit 10 years in 2020 and I received a 1099-C; however, the judgement is still sitting at the courthouse and they stated they do not remove the judgement unless the company contacts them and in my case they have not. Lastly, the other two will hit 10 years in two years. Pay or wait to see if they renew. So, I am looking to see if an attorney here can get more information on the judgements and help me with the process?

11/15/2021 12:49:42 pm

I would be happy to set up a phone consult to discuss your options. There is a $100 consult fee. Please use the Quick Contact form at the bottom of the page to set something up.

Whitney Womack

1/24/2022 09:47:55 am

We're going to court for credit card debt of 9,276. My boyfriend and I are not married and the only property to his name is the house which also has my name on it. We reached out to settle the matter without going to court but all they did was demand he provide his assets. What can we do and what are the possible outcomes? we live in NC.

1/24/2022 10:54:39 am

For specific legal advice you would need to schedule a consultation. We offer phone consults for $100.

5/1/2022 11:12:39 am

I have been sue by Smith & Debnam for cc debt 4,800. They just send me a Motion for justment. It due in Jun
If there a chance for me to fight it or consider settler the debt.

5/1/2022 12:00:53 pm

You can always call the law firm and make an offer of settlement. Can you offer 50% lump sum right now? You can also speak with a local attorney about trying to file an Answer to drag the case out.

Jane

7/15/2022 11:09:46 am

My husband is about to have a judgment entered against him for around $10K of credit card debt. I was not aware that he was in debt until the judgment was filed, as our money is not together. He tried to contact the law firm at least 50 times over the last 6 months but no one would respond to his calls or emails, but we could pay it off if anyone gave us direction on who to pay and how.

I can't figure out what is going to happen once the judgment is entered. We have a home in both of our names, purchased before we were married, and he owns a 2017 truck that he is still paying on. No other assets in his name. I have advised him to close out his primary bank account, we have a joint savings account in both of our names with little money in it, everything else is in my name. Will we have the opportunity to pay it before they come to collect our assets?

7/15/2022 11:14:45 am

What law firm did he call 50 times that never returned his call- that seems very hard to believe. My advice would be to hire an attorney ASAP to contact the law firm on your behalf before the judgment is entered.

7/15/2022 11:52:37 am

Brock & Scott. He has called their collection hotline, their firm phone number, and emailed multiple times with no response. But the judgment will be entered in a week from today, I'm not sure anyone would take the case that late.

7/15/2022 12:05:20 pm

I would be happy to set up a phone consultation to discuss your options- there is a $150 consult fee. Feel free to email me directly using the "Contact Us" page of this website.

Arnold

8/4/2022 05:44:16 pm

I have gotten notice of Hearing from Brock and Scott for TD Bank Target credit card debt of $3000. Most of that balance is capitalized late fees and interest. I have answered the complaint. When I go to court can I expect to get a judgement for entire amount if I lose, or will the late fees usually be written off as there is no written/ signed application or disclosure disclosure in the complaint. Also, can I expect the opportunity to go to arbitration at this point?

8/4/2022 07:24:08 pm

Procedure can vary by county. What county is this case in?

2/8/2023 08:43:14 am

My single father just received a civil summons notice from the local sheriff's dept. The paperwork has not yet been picked up, but I know it will relate to his unsecured debts. He has Alzheimer's (formally diagnosed, I have a letter from the doctor) and lives in an adult care facility. He has no assets other than his (former) primary residence that we are actively trying to sell. What do you recommend given this context?

2/8/2023 10:12:51 am

I recommend an in depth consultation with a local attorney before the lawsuit becomes a judgment and possible lien on his house. If you cannot find a local attorney I offer phone consultations for $150.

Ann

2/19/2023 09:51:14 pm

I was served with documents stating I'm being sued by Barclays for $3900. They are being represented by Sessoms and Rogers, P.A. More than 10 years ago, I went to arbitration because the amount they stated I owed on this super old cc was not accurate. They could not prove the amount so there was a judgment for the $3900 (the amt they had proof for). After the judgment was in their favor, I was making monthly payments until an unfortunate layoff. I asked if they would accept a lower payment, they declined so I stopped paying. So here it is 10 years later, they are attempting to get the money again. What are my options? I don't think I can ask them to supply me again with proof of the $3900 but they did attach a copy of the judgement from 10 years ago.

2/19/2023 09:57:22 pm

What county is this case in? It sounds like it might be an action to simply "renew" the prior judgment for another 10 year period.

Nancy

6/30/2023 12:55:56 pm

My husband just received a civil summons complaint for a $1700 discover card debt, we are thinking about calling the cc company and offer a settlement, do we still need to respond to the summons? Do we need to request any paperwork from the cc company stating the settlement? ( That is if they accept it) do they drop the complaint after a settlement?

6/30/2023 01:00:30 pm

Once a lawsuit has been filed the credit card companies will generally direct you to speak with the law firm. You can certainly call the law firm and offer a lump sum or monthly payment settlement. If you do not file an extension or time or written Answer at the courthouse within 30 days of being served with the Complaint the creditor will be able to obtain a default judgment.

Mike F

2/23/2024 10:10:00 am

My wife has a Discover card in her name and I'm listed as an authorized user. The balance is just over $25,000. We stopped making payments about 7 months ago because of inflation and medical bills. She has cerebral palsy and has never worked. As an aside, I did some figuring and found that all purchases have been paid for, along with over $6000 of interest fees. The $25,000 balance is all interest. My wife has nothing in her name, except a joint checking account with me. I own a 1% interest in the home that we live in. We just got a letter asking to settle before February 29. Otherwise, it will be turned over to an attorney. We have no savings and there is not much left of my paycheck after paying bills. Any advice on what to do next? Thanks.

2/23/2024 10:32:45 am

Are you looking to settle or just let it go to a judgment? I would recommend speaking with an attorney before she is served with a lawsuit to start any game planning she may need to do such as closing any joint bank accounts etc...

2/23/2024 02:16:53 pm

I thought about just letting it go to judgement. Thanks.

2/23/2024 06:35:22 pm

Maybe consider speaking with a bankruptcy attorney rather than just let it go to judgment. Be advised that your joint account with her could also be levied after judgment.

2/24/2024 07:06:25 pm

Thank you for your time and advice, Jason.

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