A chose in action is essentially a right to sue. It is an intangible personal property right recognized and protected by the law, that has no existence apart from the recognition given by the law, and that confers no present possession of a tangible ob
North Carolina Assignment of Money Judgment is a legal process where a creditor transfers their right to collect a judgment to another party in exchange for immediate compensation. This allows the original creditor to receive immediate funds without having to go through the tedious process of debt collection. In North Carolina, there are two main types of Assignment of Money Judgment: Absolute Assignment and Collateral Assignment. 1. Absolute Assignment: This type of assignment involves the complete transfer of the judgment to a third party. The original creditor effectively gives up all rights and responsibilities associated with the judgment, including the right to collect or enforce the judgment. The assignee then becomes the new legal owner of the judgment and is responsible for collecting the debt directly from the debtor. 2. Collateral Assignment: In this type of assignment, the original creditor retains ownership of the judgment and only transfers the right to receive payment to a third party. The assignee becomes a secured party and can demand payment from the debtor within the assigned amount. If the debtor fails to make the payment, the assignee can take legal action and enforce the judgment against the debtor. Both types of Assignment of Money Judgment provide benefits for creditors. By assigning the judgment, creditors can receive a lump sum payment upfront, which can help improve their cash flow or alleviate financial burdens. Furthermore, assigning the judgment to a specialized debt collection agency or buyer can lessen the administrative burden and costs associated with ongoing collection efforts. It's crucial to mention that the North Carolina Assignment of Money Judgment is regulated by specific laws and regulations. Assignment agreements need to be properly executed and recorded with the court to ensure their legal validity and enforcement. Additionally, certain restrictions may apply, such as the prohibition of assignments involving child support or certain government benefits. In summary, the North Carolina Assignment of Money Judgment allows creditors to transfer their right to collect a judgment to a third party in exchange for immediate compensation. Both Absolute Assignment and Collateral Assignment are common types of assignment. However, it's important for creditors to be aware of the legal requirements and seek professional guidance to ensure a smooth and legally valid assignment process.
