Log in to post comments. What county is this lawsuit in? Maybe try and offer $1,450 lump sum to see if they counter with a reasonable number. Never heard of filing a motion to exempt property if no notice of right to claim exemptions as been filed. The title search company is attaching it to the property based it being in the same name as the judgement. ​If and when credit card companies decide to sue varies based on the creditor. I understand from a moral obligation that we should pay, but from a legal standpoint what else can they really do? Thank you!!! Is that legal? I think it started at 6k, 8 years ago. Your next move depends on what you are looking to do. Just does not seem wise. Thanks in advance. Credit card debt, unlike mortgage debt, is unsecured debt. I just received a letter from Cooling and Winter regarding a Bank of America card that I stopped paying on over 10 years ago. Looks like back of cover page is supposed to be signed that I received it. We do offer a $100 consultation if you are interested. Now I have been served with a civil summons. Lawsuit FAQ’s. A judgment in NC is good for 10 years and can be renewed 1 time for an additional 10 year period. 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. What should I do? Also plan to keep the same auto insurance we’ve had for the past 18 years. The statute of limitations is an affirmative defense that must be raised or else the defense is waived. Since we are largely a credit-driven society, many debtors become anxious about their credit histories. In the past I just ignored these and have been visited by sheriffs who left empty handed as I own very little. I have a credit card debt with Capital One I haven't been able to make payment since March 2018. In North Carolina, bank accounts are not generally exempt from attachment by judgment creditors, so be careful about depositing money into a bank account if you have a judgment against you. If you’re sued for a debt and the debt is too old, you may have grounds for defense. In fact, it does not even mean the creditor wrote the debt off their taxes and a 1099-C is imminent. I currently have nothing in my name (bank account, car, home). 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. Thanks, A $500 offer was basically a non-starter. They have an attorney of Glasser adn Glasser, P.L.C. It would be ideal to have a local attorney, but finding one last minute might be difficult to impossible. It can also charge interest at a court-approved rate, typically in the range of 5 percent to 10 percent, until you pay up. I dont want to file bankruptcy. Our kids have CDs worth $30k and we have a joint bank account with approximately $1500. Answer Save. All He has been receiving the usual calls and letters trying to get him to settle but he has no money to pay. The last payment was last year december. If a Plaintiff sues for more than $25,000 in District Court a motion to dismiss or remove to Superior Court may be appropriate. This summons often lists a credit card company or medical debt collection company as plaintiff and as defendant, you and/or your spouse. 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. 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. 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. Everything is in husbands name. This means that there is no specific piece of property that the creditor has a right to repossess if you don’t pay. Would it be at the County the summons was filed in or the County where I actually reside? If contacting the debtor and requesting payment fails, the collection agency may file suit and seek a judgment. It should not be a lien on jointly owned property. I have LVNV collecting a debt for HSN for 1456.80. The summons letter talks about a written answer to the complaint within 30 days. I have been served summons from same law firm. The Law Corner: Unfair Debt Collection Practices, Nolo: North Carolina Wage Garnishment Law. Make shopping more secure with online and in-person payment options. Unlike mortgages, they do not have collaterals attached to them. What advice would you offer? 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. If the house is in joint name as tenancy by the entirety I would find a different closing attorney. This could potentially include large items such as a refrigerator, TV, jewelry, or furniture. 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. Standing- Does the Plaintiff own the debt? https://www.lawhelpnc.org/files/CF76DC62-D528-7183-3117-39472C017826/attachments/EEE12AB7-E5BB-4C37-A13C-2167AE97848B/general-answer-sample.pdf. When you click on the "Apply Now" button, you can review the credit card terms and conditions on the issuer's web site. I live in Mecklenburg County A creditor with a judgment can attempt to use some of your property to pay the judgment. In fact, the judgment will definitely not be in your favor if you are a no-show. Is this possible after 11 years ? in north carolina can a credit card judgement garnish wages or bank account or put you in jail for judgements? 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. How long varies from a few months to right before the statute of limitations expires. By obtaining a credit card judgment, the lender gains the ability to use judicial process to sell the borrower's property or seize money out of bank accounts.The lender with a judgment can attempt to collect for 10 years or more. There are however several protections to those living in most states. As the Consumer Financial Protection Bureau explains on its site, “a statute of limitations is the limited period of time creditors or debt collectors have to file a lawsuit to recover a debt.” These periods vary according to state laws and your type of debt, the CFPB notes. Today the application and approval process is simply a few clicks on a computer or smartphone constituting an electronic signature. The banks take the position that use of the card constitutes acceptance of the terms of the contract. 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. Most credit card transactions in person at the grocery store and fast food restaurants under $50 do not require a signature anymore. It is important for consumers to read the fine print to see if they can. 2) file answer, but mot exemptions yet 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”. How can i fight this or what are my options? Lawyer's Assistant: The Expert will know what to do. You should read the complaint closely. 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? 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. Causes of Action: The case law references two common causes of actions available in an action to collect a judgment on an overdue credit card account: An Action on Account Stated; and an Action on an Open Account. What can they do in NC if a judgment is granted? Many credit card transactions are all done online including the application process- so there is no signature. 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? The idea that a judge will set up a payment plan is a HUGE misconception- they have no authority to do so. She can't pay any of her bills, why would they freeze all of her accounts? Bankruptcy Wage Garnishments in North Carolina with court judgement. 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. 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. If you fail to claim any exemptions the creditor can take everything you own including the shirt off your back. The law firms below generally represent the plaintiffs listed and do not actually own the debt. The Defendant Package. 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. A graduate of New York University, Jane Meggitt's work has appeared in dozens of publications, including Sapling, Zack's, Financial Advisor, nj.com, LegalZoom and The Nest. How does one protect their assets (home, levies) in the answer to the complaint? Bank accounts can be levied if in joint name because either owner can withdraw the entire balance. A judgment lien in North Carolina will remain attached to the debtor's property (even if the property changes hands) for ten years. ​Some of the possible defense and counterclaims that can be asserted if being sued are as follows: Pursuant to NCGS 1-52 most contract actions in North Carolina including credit card debt are subject to a 3 year statute of limitations. You also need to be prepared for any 1099 for the difference between what you paid and the current balance. That being said, the statute of limitation is an affirmative defense that must be raised or else that defense is waived. Assuming you actually owe the creditor money then the issue becomes whether the creditor can prove the asserted amount in court. You are right though- filing a bankruptcy does open you up to unintended consequences.. What does the original credit card company have to bring to court in order to prove it’s your debt? Credit card debt is usually unsecured. This can be very important when you … Can my spouse be legally sued or held responsible for this debt? 4) if judgment is awarded at court date, 20 days after judgment awarded to file exemptions? I tried to work something out with Capital One back then but never return my calls. You could have a marital interest in divorce court or via inheritance. 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. He is 18 on autism spectrum(high functioning) but not responsible. What should this letter be about? Not many landlords would want to evict a good tenant who is current on the rent. 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? Defaulting on a credit card wreaks havoc with your credit score and could land you in bankruptcy court, but North Carolina offers more protection than most areas. Reasonable efforts are made to maintain accurate information. My husband received a Mecklenburg county civil action “complaint” (law suit) from Bank of America for cc debt of $23k. https://www.swlawnc.com/notice-of-right-to-claim-exemptions-in-nc. ?? North Carolina General Statute § 1-362, along with interpretations of that law, heavily limit the ability for non-governmental creditors to withhold wages through wage garnishment. Do you dispute the interest and fees? In North Carolina, the civil judgment awarded by a judge at the conclusion of a lawsuit gives the winner the right to use legal recourse to enforce the court's order and collect the award from the debtor. What about the potential of life insurance money? Thanks Attorney Witt for the link and info. If your credit card default falls within the North Carolina statute of limitations -- less than four years -- the creditor can sue you. Or if most collector always renew for another 10 years.. Should I go ahead and negotiate it?? Answer Summons. Statue of limitations say in NC you have 3 years to collect a debt. This is my only income. 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. Exemptions are only filed after a judgment is entered and the creditor elects to send out your notice of right to claim exemptions. 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. We barely make enough to pay rent and buy food. 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. It’s Illegal for a Creditor to Place a Lien on Your Home. Having said that, if you fall behind on credit cards, your lender will quickly try to transition their status from an unsecured creditor, who can’t take your stuff, to a secured creditor who can. Without the right to sue and obtain a judgment banks would not be in the business of loaning money. Many creditors have probably heard that judgments may be renewed in North Carolina. You would suggest responding to the court by denying the debt before the 30 days? I really appreciate it! But all of a sudden on Friday, all of her accounts were frozen. We have a home but unfortunately my name is not on deed only deed of trust. 2. Credit cards are generally unsecured debts. Need some judgement help in NC. You could also try another lender who may not require the judgment be paid as part of the refinance. ​Although many choose to ignore credit card debt that is usually not the best course of action. There is a duty to support your spouse in NC known as, For many years the credit card companies would first file for binding mandatory arbitration awards when consumers fell behind on their payments. Wilkes county. What does potential marital interest mean? The must allow follow special rules outlined in NC statutes applicable to debt buyers. It has my husband name a married man. Check out your way . 1 decade ago. Thanks so much. There is no address listed as to where to mail it. The section is left blank. The statute of limitations specifies how long a creditor has to file a civil claim for unpaid debt. Nothing has ever appeared on my credit report and they are demanding immediate payment or I will be sued. No way to know at this point, but obviously if you aren't served via the Sheriff shortly they were lying. 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. 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. I would remove cash from the bank as that is often the first place a creditor sends the Sheriff. 3 Answers. Where do I file for the extension? If service was 9-23-19 you would need to have your exemptions filed by Monday or else they may be waived. The time limit is calculated starting from the time the consumer broke the agreement to pay the debt. A credit card issuer has a judgment lien in the amount of $10,000. 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. I. It expires next year. 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. 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. I defaulted on a citi/costco card and had a balance of $5406.86. I have been talking to collectors from the attorney's office and not Discover direct. But the request for collection is from a company I've never heard of. Relevance . If they win their case, a court will issue a judgment against you which gives the creditor the ability to file a lien in the public records. Take a look at the following blog post: I know you can put up to 35,000 in equity but if I dont own the home do I just leave it blank? Filing an inadequate Answer asking for more time to pay or for a reasonable payment schedule is akin to admitting the debt. It expires 01-2021. This is called “perfecting service,” and ensures that you get notice of the lawsuit. If the creditor obtains a judgment they can move to take your property or levy on your bank account subject to your claimed exemptions.