Question from Nicki, How Long Can Creditors Pursue You After Vehicle Repossession in NC?
Answer from AI:
In North Carolina, if a creditor repossesses and sells your vehicle, they can pursue you for any remaining debt, known as a deficiency balance, under specific time limits. Here’s how it works:
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Deficiency Balance: After selling the repossessed vehicle, if the sale price is less than the owed amount, the creditor can seek the difference from you.
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Statute of Limitations: The creditor has up to 6 years from when the debt became delinquent to take legal action for the deficiency balance. This applies to secured debts like car loans.
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Deficiency Judgment: If the creditor obtains a court judgment for the deficiency, the statute of limitations for enforcing that judgment is longer, typically up to 10 years.
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Collection Methods: With a judgment, creditors can use methods like wage garnishment or bank levies to collect the debt.
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Bankruptcy Consideration: Filing for bankruptcy may discharge the deficiency debt, but this depends on individual circumstances.
It’s crucial to consult a legal professional for personalized advice, as each situation may vary. For more information, you can visit the North Carolina Courts website.
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