What is the difference between a claim and a lawsuit?

A claim and a lawsuit are two different legal processes in North Carolina that involve an individual seeking to recover losses due to the actions of another party. A claim is an informal process that a person must go through before they can file a lawsuit. In a claim, the person filing the claim will present evidence to support their argument that another party is liable for their losses. After the claim is filed, the other party is given an opportunity to dispute the claim and present their own evidence. A lawsuit is a formal legal action that goes through a court system. After a claim is disputed or rejected, the person filing the claim may then file a lawsuit. This lawsuit is then heard by a judge who will decide on whether the other party is legally liable for the losses. The main difference between a claim and a lawsuit is that a lawsuit is a formal legal action where the parties involved will appear in court, while a claim is an informal process that does not involve going to court.

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