What are the defenses available to debtors in a lawsuit?

Defenses available to debtors in a lawsuit in North Carolina may include a few different arguments. First, the debtor may assert that the debt has already been paid, or that it is no longer due. This means that the creditor has already been paid in full for the money owed, or that the creditor is no longer legally entitled to receive payment due to the expiration of the statute of limitations. The debtor may also plead the statute of frauds. This argument requires a written document to prove an agreement or transaction exists between the debtor and creditor. If no document exists, then the debtor has a valid defense. The debtor may also plead the defense of laches. This is an argument that there was a delay in bringing the lawsuit, and it resulted in the creditor losing the ability to collect on the debt. The debtor may also raise the defense of unclean hands. This is an argument that the creditor acted immorally, unethically, or illegally in the course of the business relationship with the debtor. Finally, the debtor may offer the defense of payment or accord and satisfaction. This is an argument that the creditor accepted some form of payment from the debtor in exchange for a full satisfaction of the debt. This must be proven by a written document.

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