What are the different types of debt collection actions?

In North Carolina, there are several different types of debt collection actions that creditors can take. For example, creditors may file a lawsuit against the debtor, which is called a civil action. In a civil action, a court will review the debt and the creditor’s rights to the money. Depending on the outcome of the lawsuit, the creditor may be entitled to a court order for the debtor to pay the debt. Creditors can also take a non-judicial action, which does not involve the court. Examples include sending letters and making calls to the debtor to collect the debt. In some cases, creditors can take a repossession action, in which the creditor can repossess certain items that were purchased by the debtor and used as collateral. For instance, if a debtor purchased a car and was unable to keep up with loan payments, the creditor may repossess the car in order to collect the debt. Finally, creditors can use bankruptcy proceedings to collect the debt. Once a debtor files for bankruptcy, creditors will be unable to pursue any further collection actions against the debtor. However, the debt still remains in place and will have to be settled with the bankruptcy court. In summary, there are several different types of debt collection actions that creditors can take in North Carolina. These include filing a civil lawsuit, sending letters and making calls, repossessing items, and filing for bankruptcy.

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What are the different types of debt collection actions?

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