Lawsuits to collect debts are usually filed in state courts—and may be filed in small claims courts, depending on the amount of the debt and the small claims court’s jurisdictional limits (the maximum amount of a claim that can be filed in the court).
In North Carolina, lawsuits to collect debts are typically filed in state courts. The specific court where the lawsuit is filed depends on the amount of the debt. For smaller debts, creditors may file a lawsuit in small claims court, which is a division of the District Court. The jurisdictional limit for small claims court in North Carolina is $10,000. This means that if the debt amount is $10,000 or less, the creditor can file the case in small claims court. If the debt exceeds this amount, the lawsuit would need to be filed in a court with a higher jurisdiction, such as District Court or Superior Court. It's important for debtors to respond to such lawsuits within the specified time frame to avoid a default judgment. Debtors facing a debt collection lawsuit may wish to consult with an attorney to understand their rights and options under North Carolina law.