Loans Questions and Answers
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I am receiving many phone calls and letters from collectors I cannot
pay. What can I do?
You can request for the collectors to cease contacting you. (See the sample
letter) Keep notes of the dates, time and contents of the telephone
contacts. This information may be necessary to show that the collectors have
violated state and federal laws regulating collectio
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If I am sued for a debt, will I lose my home/car?
If you sued and a judgment is entered against you, the creditor must first
serve you with a notice to claim your property exemptions. You will have an
opportunity to protect your property, or exempt it, from collection to
satisfy the judgment. The law allows you to keep some property even if a
creditor has a judgment against you. (See instruction on "What to do after a
judgment")
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I bought a car and cannot pay it. What will happen?
If the creditor obtained a security in the car, the creditor can elect to
repossess the car or sue you on the amount of the debt. Many creditors elect
to repossess the car. The car is then sold and the profit of the sale is
applied to the debt. If there is a balance owed, after applying the profit
of the sale, you are responsible for this amount. It is called a deficiency.
You are responsible for the deficiency.
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If I am unable to pay my mortgage, can I file bankruptcy and save the
home?
If you owe on your mortgage, you can save your home from foreclosure if you
can file a Chapter 13 Bankruptcy petition. This type of bankruptcy requires
for you to be able to enter a payment plan to bring your debts current. To
file a Chapter 13 Bankruptcy, you must have enough income to make the
current mortgage payments and an additional amount to pay the back mortgage
owed. If you think you can meet this criteria, you should consult with an
attorney specializing in bankruptcy.
Loan Brochures and Other Resources
Disclaimer
The materials contained on this website are for information and educational
purposes only and do not constitute legal advice. Please contact your
Legal Aid of North Carolina office or a private attorney if you need to speak to
an attorney regarding your particular situation. See our complete
disclaimer.
Mission Statement
Legal Aid of North Carolina is a statewide, nonprofit law firm that
provides free legal services in civil matters to low-income people in
order to ensure equal access to justice and to remove legal barriers
to economic opportunity.