North Carolina Debt Relief
North Carolina Credit Card Debt law has a 3-year Statute of Limitations (SOL), or time limit for filing suit, over unpaid Credit Card Debt. The clock starts ticking from the date of the first missed payment, but restarts upon any partial payments that may follow. If a summons is served on the debtor, the debtor has 30 days to file an answer to avoid default judgment, so certified mail is recommended for sending the answer.
North Carolina limits the time for creditors to recover a judgment to 10 years. Interest may be charged at the rate of the contract or 8% per year. Once filed with the clerk in the appropriate county, the judgment becomes a lien against the debtor’s real property, lasting 10 years. The court may order levy of all debtor personal and real property. A homestead exemption of $10,000 is allowed. Other personal property exemptions are also allowed.
Wages may not be garnished for 60 days preceding the order if the earnings are proven necessary for maintaining the debtor’s family. In addition, a court precedent exists that prevents garnishment of future wages.
A judgment by confession, or admission of liability for debt with the same power as a court order, is recognized in North Carolina. Such confessions may only be used for purposes of the judgment and not in any other civil proceedings.
It is considered far more advantageous to engage in a Debt Settlement agreement with the creditor, rather than allow the court to decide how and when payments should be made. Debt Settlement helps the consumer avoid bankruptcy by providing a workable option for paying the debt obligation.