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North Carolina Collections Questions & Answers
Q: How does an opt-out release affect my creditor claim in a bankruptcy?
I am a creditor involved in a bankruptcy matter with a vendor I used to work with. I recently received paperwork regarding an opt-out release and notice of potential assumption of certain debtors' executory contracts and unexpired leases. I am trying to understand what this paperwork means and... View More 
Christopher Adkins
answered on Nov 10, 2025
answered on Nov 10, 2025
An opt-out release in a bankruptcy case usually means that if you don’t opt out, you agree to release certain claims you may have against the debtor or related parties (like officers, directors, or affiliates) once the bankruptcy plan is approved. If you opt out, you keep your right to pursue... View More
Q: How can Synchrony sell a known fraudulent debt and do I have recourse?
In 2023, a Verizon credit account was fraudulently opened in my name in Illinois, while I reside in North Carolina, resulting in $1500 being charged. I promptly notified Verizon about the fraud, filed a police report, and placed alerts on my credit report. I was assured that the issue would be... View More
Christopher Adkins
answered on Oct 20, 2025
answered on Oct 20, 2025
If the account was opened fraudulently, you’re not responsible for that debt — but you’ll need to make sure all credit reporting and collection activity is properly disputed.
Start by sending written disputes to both Synchrony Bank and the collection agency explaining that the account... View More
Q: Being sued for car repossession after job loss in NC.
I'm being sued for a car repossession after losing my job and dealing with a death in the family. I have received court papers through the mail with a date to appear in court. I need guidance on how to proceed with this lawsuit in North Carolina.
Lynn Ellen Coleman
answered on Oct 3, 2025
answered on Oct 3, 2025
It's very difficult to answer this question without more information. In general, if you have defaulted on your car payments, you still have the car, and you have been sued by the lender, you need to contact the lender or if they used an attorney, the attorney for the lender to make... View More
Q: How does Social Security recover unreported earnings debt?
I have a family member who owes over $20,000 to Social Security because she was working and not reporting her earnings while still receiving benefits. Although it's been three years since they stopped her benefits, she ignored their letters, including recent ones about the debt. She is... View More
Christopher Adkins
answered on Oct 17, 2025
answered on Oct 17, 2025
When someone owes money to the Social Security Administration (SSA) for overpayments — such as receiving benefits while working without reporting earnings — the agency has several ways to recover the debt, and they rarely let it go. Since your family member ignored their notices, SSA will... View More
Q: Getting sued for credit card debt while on SSI disability. What to do?
I am being sued by Bank of America for $3,570 in credit card debt. My only source of income is SSI disability, and I have received court documents with a deadline on September 19th. I haven't communicated with Bank of America or sought legal advice due to financial constraints, and I have no... View More
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James L. Arrasmith
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answered on Sep 12, 2025
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answered on Sep 12, 2025
The first thing you need to do is respond to the court by the deadline of September 19th. Ignoring the lawsuit could lead to a default judgment, which would make the debt legally enforceable. Even if you cannot pay the debt, you can file an answer stating that your only income is SSI disability and... View More
Q: Need guidance for civil summons on car loan debt after repossession due to financial hardship.
I was served with a civil summons related to a debt of $7,971.17 from a car loan. Originally, I co-signed with my daughter for the car, but it seems the loan is solely in my name. My daughter couldn't make the payments, so we opted for voluntary repossession. Now the debt has been sold to a... View More
Lynn Ellen Coleman
answered on Aug 21, 2025
answered on Aug 21, 2025
Financial hardship is not a legal defense and you likely owe what they are asking for. You can talk to a consumer bankruptcy attorney about all.of your options or you can call the lawyer for the Plaintiff directly and see what they are able to offer you. A few things to keep in mind. The Court... View More
Q: Can my vehicle be repossessed after defaulting on a secured loan?
I defaulted on a personal secured loan over a year ago, which was secured by my vehicle. I have received written communication from the lender stating a specific timeline for repossession, but I have not explored any options for loan modification or refinancing. Can my vehicle be repossessed?
Barry W. Kaufman
answered on Aug 13, 2025
answered on Aug 13, 2025
Yes. That's what a security interest is - your car secures the loan. If you stop paying, they yank the car. If you wait around, your car is going to be repossessed. Get cracking on refinancing or getting your loan terms changed.
Q: Request to pay tuition after 5 years for dropped class in NC.
I received a request to pay tuition to a community college in North Carolina, 5 years after I dropped the class. At the time, I did not realize that I owed 25% of the class costs. This is the first notice I have received about the balance since dropping the class. The college cannot explain why it... View More
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James L. Arrasmith
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answered on Apr 13, 2025
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answered on Apr 13, 2025
In North Carolina, as in many other states, there are statutes of limitations that set a time limit on how long a creditor, including a school, can wait to collect a debt. Generally, for contracts or agreements, the statute of limitations is three years. This means that the school may not be... View More
Q: How can I retrieve my car mistakenly repossessed for another person's account in NC?
My vehicle, which is under my name, was repossessed by a finance company that claimed they were seeking repayment for another account that is not even in my name. The finance company, unable to locate the car they were actually looking for at my address, directed a repo agent to take a vehicle,... View More
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James L. Arrasmith
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answered on Apr 11, 2025
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answered on Apr 11, 2025
Having your car wrongly repossessed for someone else’s debt is not just upsetting—it’s a serious violation of your rights. In North Carolina, a repossession company cannot legally take your vehicle unless there is a valid lien on it tied to a debt in your name. Since the car is registered to... View More
Q: How to recover personal loan from a friend in NC?
I’m seeking legal advice on recovering a personal loan of $9,450 made to a friend between May 2022 and August 2023, using PayPal and Venmo. She has acknowledged these loans in emails and texts but has only repaid $700, paying $100 per month. We have no formal signed agreement. I would like to set... View More
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James L. Arrasmith
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answered on Apr 13, 2025
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answered on Apr 13, 2025
To recover your personal loan, you can start by sending a formal demand letter to your friend. In the letter, outline the loan amount, repayment terms, and the fact that she has acknowledged the debt through emails and texts. Specify the repayment deadline, and express that you expect the full... View More
Q: Will house sale proceeds be withheld to pay personal debts?
My siblings and I are selling my mother's house in North Carolina, and we plan to split the proceeds. Will any money I receive be withheld to pay my personal debts, such as a car repossession and a loan that appear on my credit report?
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Anthony M. Avery
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answered on Mar 13, 2025
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answered on Mar 13, 2025
There is a good chance that your share will be used to payoff any judgment liens against your interest of record. Then you covey free and clear of encumbrances which is a covenant of title.
Q: Can I request to unfreeze my bank account garnishment for NC state taxes and start an installment plan?
My bank account was garnished due to state taxes, and I have received written notice about this action. I have not yet contacted the tax authority about this specific garnishment, and I have other unpaid taxes with the state. Can I request them to unfreeze my account and set up an installment plan... View More
Lynn Ellen Coleman
answered on Mar 6, 2025
answered on Mar 6, 2025
You should contact a bankruptcy lawyer for advice about filing Chapter 13 (I assume this is personal income tax). You may get a longer time to pay if you file bankruptcy, and you may actually get back the funds if you file quickly.
In my experience, the State of NC will not lift the... View More
Q: Injury on private property, judgment not paid, property sold. Next steps?
I was injured on a private property and had to undergo surgery. I hired a lawyer and obtained a judgment in my favor in early September 2024. Shortly after, the property was sold at the end of September 2024. We filed a writ of execution and attached the owner's bank account, but the funds... View More
Lynn Ellen Coleman
answered on Feb 25, 2025
answered on Feb 25, 2025
Your lawyer (or another lawyer if yours is not interested in pursuing the matter) needs to pursue "Supplemental Proceedings In Aid of Execution" and have the owner of the company set up for questioning about the extent and location of assets, any pending sales, income, and so forth. These... View More
Q: Being sued for debt but summons was delivered to the wrong address and not signed by me - what should my next step be?
I discovered recently that a lawsuit was filed against me due to my Discover debt. I had no knowledge that it was assigned to an attorney's office. I was on the Mecklenburg court site to verify something regarding a different situation and I seen the lawsuit information. The summons was served... View More
Lynn Ellen Coleman
answered on Feb 4, 2025
answered on Feb 4, 2025
You will need to file a motion to set aside the entry of default due to faulty service under Rule 60. If it was served by mail, an affidavit from you will be required with proof of your correct address. You will likely need a lawyer to help you because there are no "forms" for this Motion... View More
Q: I've been receiving phone calls from someone saying they are a litigation service and claim I owe money. Is it legit?
They say I took out a loan several years ago from Easy Loans for 500 dollars and nothing was paid on the loan. I do not recall taking out this loan. I declared bankruptcy not long after the time frame they say the loan was taken out. I don't know if this is a scam or something I thought was... View More
Lynn Ellen Coleman
answered on Nov 17, 2024
answered on Nov 17, 2024
Continue to ignore them, this is a scam. You can report the calls to the North Carolina Attorney general's office. Block the calls and eventually they should go away. "Litigation service" is your first clue of scam, and claiming you took out a payday loan that you cannot remember... View More
Q: I was sued and lost but the case was filed in a different county than the one i live in is this a valid suit
It was a default judgement for debt collection, the case was filed in iredell county but i live, and the debt was incurred, in craven county. Nor was i informed of the hearing.
Lynn Ellen Coleman
answered on Oct 22, 2024
answered on Oct 22, 2024
You need to get a copy of the court file from Iredell County, including the return of service that shows how you were allegedly served with the Summons and Complaint, and take it to an attorney for review.
The general rule is that debt collection lawsuits must be filed in the... View More
Q: My mother-in-law passed away. She has no estate, no assets. Are my wife and I responsible for her credit card debt?
Lynn Ellen Coleman
answered on Aug 29, 2024
answered on Aug 29, 2024
You are not responsible unless your names were on the credit cards. Her estate is responsible. If she had any .money or property at the time of her death, those would be sold and/or money used to pay her debts. I suggest that letters be sent to her creditors explaining that she passed on xxx date... View More
Q: online order, Mail Carrier lost, 4 months, 30 recorded calls, 20+emails, told them to cancel, getting billed & late fees
I ordered something that should have been delivered May 10th that "Mail" lost. Never left GA warehouse, I'm in NC. Never left "Mail" hands. Conns was denied claim by "Mail" because they did it wrong, I can't claim b/c I'm not the 'entitled... View More
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James L. Arrasmith
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answered on Aug 31, 2024
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answered on Aug 31, 2024
You need to take immediate steps to protect yourself. Start by sending a formal, written demand letter to the retailer's corporate office in Texas, clearly stating the issue, your demands, and a deadline for resolution. Reference your prior communications, including the dates and outcomes of... View More
Q: Question of Civil Contempt of Court North Carolina for an Adminstrative Law Judge's Order of payment
I was given notice a law firm is filing civil contempt of court for not paying them $40,000 from a decision of an administrative law judge. The matter was at OAH in Raleigh. The other party's attorney and the ALJ are really good friends. They think my wife and I are loaded, but we are not. We... View More
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James L. Arrasmith
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answered on Jul 27, 2024
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answered on Jul 27, 2024
You should gather all documentation related to the case, including the administrative law judge's order and any correspondence with the opposing attorney. Ensure you have records of your financial situation to demonstrate your inability to pay the $40,000. This can include bank statements and... View More
Q: Someone in the family was in a fight with another person. That person may sue. What can we do to protect our money?
Tim Akpinar
answered on Jun 10, 2024
answered on Jun 10, 2024
A North Carolina attorney could advise best, but you posted a week ago. Product liability (your chosen category) attorneys don't usually get involved in the issues you describe. You'd probably want to speak with attorneys who work with asset protection, collection defense, or bankruptcy,... View More
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