What is the process for collecting unpaid debts?

In North Carolina, the process for collecting unpaid debts is governed by state law. The process typically starts with written notification that a debt is owed. The creditor must present valid proof of the debt, such as an invoice or a copy of contract. The creditor may then demand payment in full, or in installments. If the debtor is unable to make timely payments, the creditor may turn to the court system. The creditor must initiate a lawsuit and file a claim in the proper court. The court will then issue a summons and complaint, which notifies the debtor of the lawsuit and sets a specific date for a court hearing. If the debtor does not show up for the hearing, the court may enter a default judgement in favor of the creditor, which orders the debtor to pay the debt plus court costs. In some cases, the court may order the garnishment of wages if the debtor is employed. This means that the debtor’s employer must directly withdraw money from the debtor’s paycheck to pay the unpaid debt. The creditor can also place a lien on any real estate the debtor owns, which prevents the debtor from selling or transferring the property until the unpaid debt is satisfied. If the debtor does not comply with the court’s order, the creditor may obtain a writ of execution, which directs a sheriff’s office to seize the debtor’s property, which is then sold to pay the debt. Collecting unpaid debts can be a complicated and time-consuming process, so it’s important to consult experienced legal counsel.

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What is the process for collecting unpaid debts?

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