Business Debt, Collections Bad debt collection out of state

Michael Wechsler

Administrator
Staff member
Jurisdiction
North Carolina
Many people don't realize that debts that have been challenged in court and judgments issued to a plaintiff can be enforced in another state. For example, if a debtor lived in New York state and lost a judgment in civil court to a plaintiff, the plaintiff can file or "perfect" the judgment in New York state and use that judgment as a basis to collect against the defendant who moved to North Carolina in a North Carolina court that has jurisdiction over the defendant. So that means that if you lost a $5,000 case in a New York court - even a default judgment in small claims court - the plaintiff can use that judgment as a basis of filing suit against the defendant who moved to North Carolina in a court in the county where the defendant lives.
 
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