Can Credit Card Debt Collection Lead to My Home Being at Risk
I owe 42,000 total, to different companies for credit card debt.
How common or often is a person forced to sell their house for the equity to satisfy judgements against them for unsecured credit card debt?
—PH
Having your home forced to be sold to satisfy a judgment that resulted from credit card debt is just not that common a practice.
Credit card collection efforts are done in a one off capacity.
If a creditor or debt buyer sues, they are typically suing for one debt individually. That one debt is normally not of an amount large enough to justify the costs of trying to force the sale of an asset like a home in order to collect.
Creditors and debt buyers sitting on a judgment know that what they have is a piece of paper that they need to turn into money. They will try the other forms of turning their paper into money like:
- Wage garnishment
- Bank account levy
- Property lien (this is the one that speaks to your concern)
A creditor looking to enforce payment on a judgment also knows that the debtor can seek the protection of the bankruptcy court at any time. Any one of the three bullets above can send a person to the bankruptcy court.
Property liens resulting from a credit card judgment are common enough. Forcing sale of the property to get paid on a credit card debt is not. More typically the lien on the property gets paid, to whatever amount, when the home is sold or refinanced.
Filing bankruptcy to eliminate credit card debt.
People want to avoid bankruptcy. Creditors and debt collectors know that. But spooking someone into it by hitting up the roof over the head is a sure fire way to send someone right to a bankruptcy attorney.
If you qualify for chapter 7 it most often wipes out any unsecured creditor claims.
If you have too much equity in your home to file a chapter 7 in your state and want to keep the home, you can file a chapter thirteen where the unsecured creditor is likely going to get paid far less than 100% of what they are owed – In some instances as little as 10%.
If you have income, assets, and property to protect than I would encourage you to put together a plan to settle with creditors in order to avoid any of the bullet items above.
Break down your credit card debt for me in a comment reply below. List them out by the name of the creditor and the amount owed (round to the nearest hundred dollars). I can provide some additional feedback and risk exposure that you are concerned about.
Any reader with similar concerns can post questions and get feedback below.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
I have over 140,000 in credit card debt, my home has a first mortgage of 204,000 but is worth 340,000 I cannot qualify to refinance because income is too low, I also own a rental property with a value of 100,000 and the mortgage on it is. 64000. I have considered bankruptcy but I know I have too much equity and I’m scared they will force me to sale and I still have children at home and I do not want to go that route if at all possible. A lot of it is business debt in our personal names my husband owns a contracting company and since COVID we are just struggling with everything. Thanks for your in put or direction I am located in Indiana
I can get into the details of your debts and the programs your creditors will have available to avoid bankruptcy. You can schedule that phone call with me here: https://calendly.com/debtbytes/15min
Crown Asset management/Stillman got a levy order for personal & real property on a debt of 24,000. A court officer repossessed my vehicle which would be exempt if I file bankruptcy. Also, from the time I receive the Levy order, how long do I have to make arrangements to pay the debt before they seize my home. Also, I have a Heloc on my home, no 1st mortgage and also there is another judgement lien that was in place before Crown Assets, Does any of that make a difference with Crown Asset being able to seize my home. I’m in Michigan
I just sent you an email with a link to locate the type of attorney in your state that can help you gauge the best direction to take in your situation. Most on that list will offer a no cost initial consult.
I am 70 years old with $100,000 in credit card debt with major banks; Bank of America, Wells Fargo, Citi Bank, Barclays, Chase, Discover, etc. All of this credit card debt is medical bills and living. I am sole owner of my home and I owe $35,000 on my home with approximately $300,000 in Equity. My sole income is social security. I do not have any family. All have passed away years ago. I am going to sell my house and I am looking at tops 6 months to get that done until closing. The little cash I do have left I need to get me through until that time. I was going to be able to make it until these banks raised my interest rates up from 10% to 23%. For example one of my credit card monthly payment went from $155 to $410. They raised the interest rates right after the Federal Government started raising the Federal prime interest rates to tame down inflation. I have tried to work with the banks begging to please lower my interest rates for just 4 to 6 months then my house will be sold. They will not budge. The profit that I do make from my home I need to spread it out for the rest of my life. Up until these medical issues occurred my credit score was always between 820 and 860 all of my life, in other words I have always been very financially responsible. I have been with these banks with credit cards for 50 years, so they know my history and yet they are not willing to help me. If I default before the house is sold, can they attach my social security income? If for some reason because of the real estate market fluctuating and at the end of the sale I do not make $300,000, the profit that I do make needed to live the rest of my life and I just walk away from the debt and not pay the credit card debt, can they attach my checking account and take the money that I do have left? The other thing that I was trying to avoid are all of the lawyers fees, etc that I would have to pay before I get my house sold if I can no longer make my monthly payments to them before my house is sold. The banks still will not help me. If they could just drop the interest rates back down to what they were, I think I would be able to continue with all of the monthly payments until my house is sold. Any information, you can give me I would greatly appreciate it. Thank You so Much. I feel very lost right now and so much stress!
If the main goal is to get your credit card interest rates lowered I would call 800-939-8357 and hit ext 1. That will connect you to a nonprofit credit counselor who can go through an exercise with you to see what they can get your interest rates lowered to. Some of your creditors may even go to zero if you qualify.
Get the monthly payment quote and then sleep on it before you sign up for anything.
If the quote is not the relief you need, call that same toll free number and hit ext 2. That connects to me. I can walk you through other workable debt relief options. The stuff I will talk through with you hurts your credit, where the first option above typically would not.
Thank You very much for this information!
Hello. My 87 yr old father live on social security and has about $10,000 left in an IRA. He has a reverse mortgage on his home. He is currently in $60,000 of credit card debt, which he can no longer afford. This is due to a deadbeat brother who moved home with him, had him run up the debt to help support him and his bills, and has now quit working because he is ill. My Dad cannot pay without my brother’s help and my brother won’t work or file for disability. Legal Aid services in Louisiana have advised him to just stop making the payments. His question is, however, can he sell his house so he is rid of my brother, or would the credit card companies be able to take his equity if he is in default? I don’t think he can afford to rent unless he has his equity to live on. thank you for any advice.
What state does your father live in?
Do you have a rough estimate of what equity remains in the home were he to sell?
Just received a property lien notice from a collection agency over 1600.00 walmart credit card. I went to court over this over a year ago, and was told they would take my taxes, which they have not done yet. After the death of my fiance,(co borrower of the home the lien is on) and suffering a heart attack my self a few years back, i was barely able to pay mortgage and bills. Why can they put lien on property instead of taking tax returns? Currently i am on unemployment due to risk of covid and on unemployment. Also on forbearance with mortgage company thanks to the covid moratorium. Can they force the sale of my home over 1600.00 credit card debt? Homeless in Michigan in december not looking forward to!
I do not see property liens from unpaid credit card judgments result in foreclosures in order to collect. It would be especially unlikely for a balance this size.
Capital one 11,000 and chase 4500 live in ms. Can they take my mother’s home now that she’s been placed in a nursing home for non payment of the credit cards
She would have to be sued and judgments entered first.
If that happens, they tend to sit on the liens, waiting to collect until the home sells, or you need to refinance.
You can settle judgments after the fact if it comes to it, but ideally you would want to put a strategy together to settle prior to collection attorneys getting involved. This way you can prevent any risk to the home.
Hi Michael,
I live in CA and have around $70k in cc debt and cc under my name only, but my wife and I own a house together, I’m 100% on time with my cc payments so far but I’m unable to pay them, just the mortgage monthly of $1375. Can file BK by myself and save my property?
Thank you
You can file bankruptcy without your wife. Household income and exemptions are still part of the equation, so she is still going to potentially have an impact, just not part of the filing.
I live in Arkansas. Filed bankruptcy 8 years ago. I was building up my credit score and owe $5200 to Discover, $2500 to USAA. We have a car we still owe $6000 on to BBVA compass and we have a mortgage with USAA. House is worth about $120,000 We owe $64000.
we lost one income, we barely have money for food. We just have enough money to make mortgage and pay utilities and car.
What can I do in this situation? I don’t want to lose the car or house. Thank you!
Can you say what your prospects look like to save up money in order to settle with the credit cards later?
If you stop paying Discover and USAA you can often settle for less later down the road. It is a pretty predictable process, made more so when you can project your access to the money needed to fund the deals.
Your credit takes a hit for sure, but as you know from your bankruptcy, it bounces back.
Welsfargo credit card 8,000
I recieved a call yesterday from a paralegal saying they are about to file a lawsuit against me for a credit card debt from 2006. He said I was sent a settlement offer from a credit collector for 3500 45 days ago. I probably thought it was junk mail. Told him I will call the dept collection agency.
I have a 2007 divorce decree stating my spouse assumed all credit debt in the divorce. The credit card was in my name. I wasn’t even aware this card was not taken care off. Iv spent 10 years rebuilding my credit and nowI have a 785 credit score. I thought my credit had no issues. Now that I know about this debt collection, what do I do? I don’t feel I owe this debt because of my divorce settlement but I don’t want to end up in a court room. My ex husband, that took responsibility for the debt in our divorce is now deceased (2011)
I have two credit cards and a auto loan in good standing. I own a home that is payed for worth 120,000.
I am a full time college student recieving SS survivors benefits for myself and one dependent. I have enough to pay my monthly bills but do not have a lump sum to give this creditor.
What you shared sounds like a debt collection scam.
Total debt: $16,000
Care credit- $6500
Capital One- $700
Credit One- $1300
Commenity Bank (Jared)- $2800
NC State Employees Credit Union -$4000
Rooms to Go (commenity bank as well) – $700
Assets:
Mortgage through NC State Employees $167,000 adjusted rate
Car through NC state employees credit union as well $26,000
We are having to go to one income. If we stop credit card payments what is the chances of them taking out a Leon on my assets?
Thank you!
V
It is common for a court judgment to result in a lien against your home in North Carolina.
You can circle back and settle the judgment later, when your finances improve, but the rate of savings is often not as good had you settled prior to an account landing with a collection law firm.
Hi Michael, I bought a house in Arizona last year that needed extensive work. I took out a HELOC to do some of the work (I owe $11k on it). I had about 10k in credit debt going in and have run it up to about $38k doing the remaining house repairs and opening two businesses. Unfortunately one was a casita AirBnb and the other is a music business.
With the coronavirus I am now in deep as AirBnb allowed cancellation of 6 weeks of bookings and I lost a big job as musicians are now mandated out of work. This crushed my ability to pay bills. I was getting by before mostly paying minimums but things were starting to look up until 2 months ago. Now they are bleak.
I put 20% down on the home. I have run through most of my savings and the banks are offering no relief other than delaying payments month to month with the interest tab running (about half my cc debt). I think we in the music and travel business are in for a long bleak road. I have received no help from the government. No stimulus check, denied unemployment, no answer to SBA loan apps. Several banks I do business with have literally seemingly disappeared and are offering no phone support. I am at my wits end with being mandated out of business, with my income shrinking to near zero, while the banks profiteer. I am not paying any bills except the mortgage and HELOC. I am not in collections or anything as it is deferred temporarily. I own my car outright. I have a cc with the Heloc bank and owe that cc $10k. They have been no help. What should I do? This feels like uncharted waters…
In summary :
House w/ 20% equity
2nd with 11k balance
38k credit cards, about half accruing high interest
Income shrunk to zero and looks like for a long time
No help from the government or banks
Who are the credit card banks?
Was your home loan FHA, VA, USDA? Do you know if it was underwritten by Fannie or Freddie?
Have you talked with the banks about your options with mortgage forbearance?
What would you estimate the dollar amount of your equity to be?
Hi Michael,
I would like to ask about my current credit card debt situation, due to job loss. I have around 35k in credit card debt, with 3 different banks. The 3 balances have been passed to different collectors.
Now, my grandparents would like to transfer a house to my name, and it is paid in full. Note that the house is in a different state. I want to ask, if they were to do so, what are the odds the house would be taken away due to the debt if i cannot pay the collectors? Also, is it possible to get served if I live outside of the states and collectors do not know my address?
In your opinion, what would be my best options?
1. Wait for the debt to go away after it reaches the 7th year
2. Settle with the collectors to pay back an agreed amount (If so, what % range on the balance would be a good ballpark number?)
3. File for bankruptcy
4. Other options?
Thank you so much for your help!
Who are the creditors and what are the balances on each account?
How late are you with payments on each?
Are the grandparents open to the idea of putting the home in an entity that you control? Talk to an estate planning pro about this.
You may be able to file chapter 7, when in the states, and then do the transfer later on, but talk to a BK attorney about that in advance.
I was 35K in credit card debt 4-years ago and was considering the same thing. My opinion is that you never secure credit card debt with your property. What I did: Got real with myself and put every single monthly expenditure on my Quicken Income/Expense scheduled payment list. EVERYTHING including once a year purchases, coffee…everything I knew I was going to spend, even if I swore I wasn’t. Habit is your best guide, be honest no one is going to see it but you. Then I just used my credit card companies’ zero percent offers, loaded my debt onto 1-2 of them and put those into my monthly Quicken schedule. At first I would have remaining balances at the end of the 12-18 month terms, I would just roll that into another credit card company’s current zero percent deal. I would always budget for a 12 or 18-month payout, but sometimes shit happens and I just had to reduce the payment for a month or two until I could get back on track. Pay as much as you absolutely can each month, but be realistic not brutal. Anyway after 3-years I paid it all off. There is no better feeling on earth as the one you’ll get when you see that statement with a zero balance (I framed mine). And my credit score is over 800. I still use credit, but budget it immediately for payoff at the end of the billing card cycle. If I need to make a large purchase, I shop for zero percent financing, and only if it fits into my monthly income/expense cycle for pay off. As Scarlet O’Hara once declared, “As God is my witness, I will never pay interest again!”
Illinois
Hi Michael,
I have about 13,000 credit card debt and my husband has about $14,000 on his own. The only asset we have is an equity of $40,000 on our condo. Still owe the bank on mortgage $72,000. Current property value is $125,000. Mortgage is on my name only. I was thinking to consolidate my debt with National Debt relief program or consider bankruptcy. My husband needs to keep his debt as is as he needs to have a good credit history and to become US citizen. What will you recommend in our situation? My main worry is for credit cards to make me cell our condo to repay them. I am also not sure how will my personal bankruptcy affects my husband. All of our credit cards are solely under my and his own names, but I am added as a secured user on his credit cards, while I never used his cards. I was originally added to his cards to be able to speak for him on his behalf since he is not fluent in English. Thank you!!!
I would talk to a local bankruptcy attorney about qualifying for chapter 7. If you do, and file without him, it is not going to impact his credit.
If you do decide to settle instead, how long is it going to take you to come up with 6500-ish to settle?
I would not use National Debt Relief. They charge too much, and you have access to negotiators right here that charge 15% of savings. You can build your user profile and start working on this by clicking the get debt help tab on any page.
About 22-24 months.
That should work out just fine.
Also, if I decide to settle with your company, I want to be positive that the credit card lenders are not going to make me sell my property to get to the equity to pay them off or put a lien on my property, while I stop paying them for 6-12 months? And again, if I avoid bankruptcy and settle with your company, does this somehow affects my husband, since I am authorized user on his cards? I spoke with credit card companies and they said once I am current on my payments( which I was just late on minimum payments for less then 30 days), I might be able to get into a hardship program with them directly at later APR. thank you
You can indeed get sued, but you would settle before they get a judgment that could end up as a property lien. Who you owe can help me understand how much of a risk you are for being sued.
I would take him off as an authorized user on your cards, and have him take you off his too. He can add you back on after your settlements are done, or after your bankruptcy is over, and it will help your credit bounce back.
Those hardship plans that some banks offer are as low as zero percent interest. If that makes your debt more affordable, and the whole thing is doable as a result, you may not need to file the bankruptcy, or de settlement at all.
.I also forgot to mention one more question. Is there a possibility that if I settle my $13k with you, my husbands credit card lenders cut down his available credit on his cards just because my name is on it, since I am authorized user on his cards? Don’t want to loose the emergency credit we have on his cards if they link me with him. Thanks .
Just take yourself off his accounts for now.
I am age 62, no income, but awaiting ssdi reinstatement. My husband’s 57, very sick, no income. Our homestead is in tn, tenancy by entirety. I want to take chapter 7 because I have around $60,000 in unsecured debt. ( only me)My question is could we keep our home, and /or do i even have to file, am i judgement proof due to age, ssdi, and cant put lien on tenancy by entirety titled home? Thank you
Florida Here.
Wife has been sued over a $9k Credit card debt with Wells Fargo which she had before we were married. We have our home mortgage with them which we owe 140k still and the house is valued at 200k. The bank credit card, and house are under her name. The deed and homestead exemption are under both of our names.
Should we try to work out a settlement?
I would. You can still settle with them even though they have the mortgage. It can mean the settlement is not as good with Wells Fargo, but not always.
I live in North Carolina, own my home valued at $225,000 with no outstsnding mortgage. I have $80,000 in credit card debt (Chase, Citi, AE). I’m 6 months behind on payments; the monthly payments became too much for my paycheck. I was told by a bankrupty attorney that I don’t qualify for Chpt 7 because I own my home and I can’t afford the monthly structured repayment plan for Chpt 13. I was recently approved for a high interest (9%) 30 year refi loan for the full $80,000 amount. My plan is to use these funds for this debt by negotiating lower payoff amounts with creditors. I would then have a small surplus of cash from this loan and begin paying regularly to improve my credit. After 12-18 mos, I would refinance at a lower rate. Does this plan seem wise? If not what other options do I have at this point? Could I lose my home if I do nothing?
Can you afford the loan payment if you do this?
Yes, with the help of a side hussle until I can refinance at a lower rate. Does this plan sound okay?
Yes, as long a you maintain the ability to pay the loan.
If you like, you can click on the get debt help tab at the top of the page, complete a user profile (private and secure) and click on the talk to an expert tab to schedule a call with me. I will go over what this is going to look like, and outline the best settlement targets for each of your creditors.
Hi Michael
I live in Indiana. Between my wife and I we owe the following credit cards
American Express $90000
Chase $80000
Bank of America $30000
US Bank $21000
Discover $22000
Barclays $18000
Citi $33000
I am chronically sick, i have not been working for 5 years and we are on SNAP, my wife is retired. Our only income is social security $1200 a month. My house is fully paid off, worth $310000, 2 older cars and that is all my assets. The house has been paid off since $1995. I have not been late on payments yet but i can’t afford to anymore. I am afraid to lose my house if we default, can I pass the house to my daughters? Any suggestions please as I am very stressed out. If I need an attorney do I consult with a debt collections attorney or a bankruptcy attorney? I do not want to file bankruptcy as I might lose our house, and I am very sick and with no where to go. Ill appreciate your feed back.
This is an untenable amount of debt with your income. Much of this debt can end up in court to collect. You may not be able to do chapter 7 bankruptcy and keep your home, but you could with a chapter 13. I would talk to a bankruptcy attorney about this.
The alternative would be settling debt for less than what you owe, but I cannot see how you would save up to do that.
My wifes creditor Dicover credit card has placed a lein on our home we own together since 1989
We live in Monroe county Michigan. Is this legal under tenancy by the entireties in Michigan.
Contact an experienced debt collection defense attorney in Michigan. I can email you a list of some I know have the experience you need if you like?
please do mail list
I am a retired Canadian citizen who “may” get a hospital bill for thousands of dollars (since the insurance company has refused to pay) … big surprise! I own a modest home in AZ ($75,000.00). I have no bank account here and no other assets or connections with the US. I live here for 6 months / year then travel back to Canada where I rent. Question:
• Do I need to worry … or prepare for the possibility that a lien could be placed against my home? Would selling it to a friend before a court ruling was made, protect it?
• Is there a possibility that an outstanding medical debt could eventually effect my passport?
PS: I have filed an appeal, so hopefully the insurance company will reconsider and all this will disappear.
How much of a bill is it that you are concerned with?
We have not been billed yet. I was transported by Ambulance. I was in Emergency care for several hours. Then in ICU for 6 hours, then transferred to recovery for 3 days. We have not been billed yet, but I can imagine the bill will be possibly in excess of $100,000.00. For the sake of argument let’s assume I’m correct. Are you able to answer my two questions?
I would talk to an experienced debt collection defense attorney in Arizona about both questions. There are real risks to being sued and a lien placed on the home. Transferring ownership now may/may not present problems.
I cannot say what the status on your passport would be for certain. But I have seen many people come and go freely with a civil judgment against them.
Would you like me to email you a list of attorneys in AZ that have the experience you need?
$15,000 in credit card debt:
$4,500 from Discover
$4,500 from Chase
$6,000 from World Bank
I have my home paid off and it’s worth $90,000 and have no late payments for the credit cards as of now. Payments are too high for me. What can I do? Can they sue or take my home? Thank you for any response.
It would take being sued, and a judgment against you in court, before there would be any risk to your home. You can prevent that by proactively settling with your creditors for less than what you owe, but only after you are many months late with payments.
How long would it talk to raise about 6k? You would not be current with payments if you decide to settle, so your credit takes a walloping. But for many of us, the decision to not pay is taken out of our hands when you run out of money before you run out of month.
Texas. My dad has credit card debts. He’s unable to pay for them bc he no longer has a job (this is recent). But, wanting sell home. Will the collectors/bank have the right to take money from the sale or put lien on the house by the time we sale?
How late with payments is he? Who are his creditors and what are the approximate balances?
It has only been a month. Citi about $8k, chase, I’m not sure of everything he owes.
They have to sue and get a judgment before there is any concern about a lien. Chase is not suing people since 2011, but that does mean it wont happen.
Citibank is not suing much, but sells to debt buyers that do. But that is likely a year out, if not longer, and also not a sure thing (that he is ever sued).
I would say you have time.
Hi i hope you can help me i live in canada montreal and i have a débt of 17000 in thé Only crédit card i have last year i got divorce and my father died i was left alone paying all thé bills of my place i had to travel overseas for thé fue tal because my parents live in another country after that i felt in a big depresion and not working right now i just received a welfare check from thé gouvernement my father left me as héritage an small apart ment thé apart ment is not located in canada i am triying to rent it but not yet thé question is can they créditors take my property éven if its in another country ? How they will know ?
They would have to sue first, but filing a lien against property over seas is not likely.
I just got a notice in the mail from an attorney’s office regarding a credit card of mine with a balance of $833.
Can our home be taken away because of this? I am not working right now because of health issues. Only my husband is working but everything he makes goes to current bills.
How should I proceed?
I filed Bankrupcy and it was discharged in April 2012. I live in Florida. I am now trying to sell my home and the title company says there is a lien against the property. The lien that was put on my property was discharged in the Bankrupcy and it is for an unsecured credit card. What can I do to to correct this quickly.
Talk to your bankruptcy attorney and see what they will do to correct the situation. It sounds like a clerical error that will be relatively simple to fix.
I have a lien of $5,000 on my house, I own it outright. It is five acres and worth $250,ooo, I also have a lien of $1,500. These are both for credit cards from junk debt collectors. I now have another judgement pending for $1,500. I am so scared, can they make me sell my house? I am 62 years old, and I am on Social Security of only $847.00 a month. Should I file bankruptcy, I don’t have good credit.
Thanks
I do not see involuntary foreclosures for credit card judgments like this. It would cost money to pursue, and people can file bankruptcy to stop something like that in its tracks. Add to that the fact that they are likely earning judgment interest while it sits there unpaid.
Judgment creditor are more apt to be patient in this regard.
I do not like bankruptcy in your situation. There is nothing they are going to be able to force in able to get paid. And if you were able to settle all of this for half, you would be filing over $4.000. Subtract 1500 from that for the cost of bankruptcy and you would be filing over $2500.
Judgement against a person. If she owns her home outright can she be forced to sell her home to settle the debt in Hawaii?
What is the judgment about? Provide additional details in a reply and lets go from there.
I have a petition filed by a Credit Union in Louisiana. I owe debt of $2947 from quite a few years back. They just went to an attorney to file a petition for court. I have not answered yet. The debt is in my name and me and my husband are paying a mortgage that is just in my husband’s name because my credit score was too low. Can they put a lien on the house in Louisiana?
I would run your question by an experienced debt collection defense attorney in LA. I can email you a list of ones I know that handle this type of thing if you like?
I reside in Florida, owe Capitol One $21,000 , discover $7,000 , Citibank $6,000, and Visa + MasterCard in Ark $8,000, lost job in 2011, stop paying in July 2011, Received my inheritance and payed off my home in 2013, not enough for credit card, got another job, best I could get at $28,000 a year. SOL is 4 yrs in this state, no judgements yet, can I file bankruptcy Chaper 7? My town home is valued at $200,000, my car is worth $2,000.. , what happens if I file ? Lien against my home? Extremely worried, don’t know what to do
Florida is one of a small handful of states that protects your home in a bankruptcy. Talk with an experienced bankruptcy attorney to learn more about what chapter 7 will look like for you.
What is your goal with filing now? I outline some good and bad things about bankruptcy (watch that video). One thing I highlight in that video is the courts legal protection from creditors. But if your debts are passed, or about to pass, the SOL to legitimately sue you, there may be no meaningful reason to file after that.
I live in the state of Colorado. Will credit card companies settle with me even though I have $300,000 worth of equity in my home? Wouldn’t they just put a lien on my home?
Credit card banks and debt collectors settle with Colorado home owners with equity every day. Are you a bigger collection target with many of them when they can see you have an asset like that? Yes, and that can mean settling at the earliest stages of collection is better for you.
Call me for a consult if you like. I can provide more details as they would apply to your situation and the banks you are dealing with. I am option 2 through the hot line number you see at the top of the site.
I’m in Florids and received a call yesterday about a cc from 2004. They got a judgement against me in 2007 for the cc debt with an 11% interest annually. They said they can put a lien on any property I own up until 2027.
We were planning on buying a home
In the next year or two but now that worries me.
Right now the balance is in the 4K area with them saying they would settle for like $3300 or $3700 can’t remember exactly.
I know sol is up but with the judgement and such not sure what I should do. I dedinitely dont have that kind of money laying around.
What do I do??
I would work hard to raise half of the amount owed and then work out a lump sum settlement for less than the balance owed. Do that before applying for any home loan, as unresolved judgments will nearly always prevent you from getting approved for home financing.
Husband/Wife team, ages 68-wife & 64-husband are still in everyone’s good graces with almost $43K in credit card debt. Actually got to the 3-year payoff point with all cc’s at the amount I am currently paying. Was making progress until business opportunity turned into more cc debt and no current income from failed business. Now I will have to go to minimum payments on most cards to meet current budget and if/when retirement is forced our fixed retirement income would only cover basic living expenses. Total of 5 different creditors: 2-AMEX, 2-BofA, 2-Chase, 2-CITI, 2-Discover. BofA is the biggest debt w/2 accounts totaling about 14K. The rest range from 2-5K each. We will own our home outright in 2016, but current value would probably appraise at no more than 200K. Our California homestead exemption at my husband’s age of 64 is 100K, when he turns 65 next year that exemption will go up to 175K. The thing I want most in life is to end my days on this property, it’s really important to me. Advice?
I can help you identify the workable options from here if you want to connect for a full consult. You can fill out the consult request form, or send an email reply to the same address you get these comment notifications from with your phone number and good times to reach you.
Michael !
Thank you for your help. I also was sued by LLC.
Some time last year I have hired an attorney on your recommendation. My debt was about 10K.
After almost 7 months of going back and forth with this unpleasant experience I was able to settle for just over 3K (that includes attorney fees and so on).
I must tell you it wasn’t easy and I was stressed out by the whole thing. Knowing it’s all done and over with makes me sleep much better at night.
You may not hear from people who used your helpful information too often so I just wanted to make sure you know how much your help is appreciated.
Once again thank you for your help.
Your right, I could really stand to hear more from people who worked their way through a situation. But what is more important than that is other readers, who come to the site with fresh struggles, getting to take heart in the messages of those who have gone before them.
Congrats on getting through it, and thanks for coming back to share the outcome!
I have about 15000 on credit card debts,
$7,500 macys
$3500 macys store card
$1500 furniture company
$1900 best buy
I own cosigned for a friend to purchase a car($17000),my personal care with $10000 owed on it.my other credit cards are up to date with the payment
I own a house with some equity in it ,mortage went up by $300 8 months ago due to state tax and at this time my hours have reduce since I purchased the house 4 years ago as result of this I am considering selling the property.
I am so stressed out from all the multiple threatnening calls from collectors non stop.was making my payments but due to some late payment it just skyrocketted.for the macys i am 7 months behind,best buy 3months behind,furniture store 4months,macys store 4 months behind.before it got this time i called the creditors to see if they could work with me but they wouldnt bulge.
So would it be adviceable for me to sell my house at this time so i can somehow pay off my debts atleast to get some peace
Thanks
I would not jump to selling your home to pay off debt collectors at this point, unless I was likely going to sell for other reasons not related to credit card debts.
You would have to be sued and a judgment entered in court before your home was at risk for unpaid bills like credit cards. You have options to deal with some or all of the accounts before, or even after that were to happen.
I have some questions before I offer more actionable feedback.
What state do you live in?
Can you afford to pay those accounts you are struggling with if the payment for all of them combines was about 300 dollars?
Can you come up with roughly 6,000 dollars in the next 12 to 18 months?
Do you answer every debt collector call that comes in? How often do you speak with collectors?
I live i in California. My credit is ruined,from a high 700 to now 514 i cannot finance my mortgage and I have a 5 year ARM interest rate which will be up in 6 months
yes I can pay $300 monthly for all combined debts
At the initial stage i used to pick all calls as they would call with 1800 numbers and even random local numbers,even calling my children’s phone numbers (i have a family plan),do not know how they got their numbers.
I stopped answering every collection calls just recently and am considering changing my number
When you say coming up with $6000,how do you mean?would it be as a result of the monthly $300.
I am currently corresponding with a “firm/agency” I assume has been hired by CACH LLC, to collect on a CC debt. They have not been aggressive at all other than the many phone calls. After there first letter, I responded with a registered letter asking them to cease and desist, denying any of the debt they were seeking, and requesting proof of the debt. They waited 3 months and sent a reply regular postal mail, with copies of the last 2 years of statements showing the only activity of “late payments & interest”. This CC had not been used since 2007, and we believe the debt had been sold 2-3 times in the last few years. One time a different agency trying to collect the debt, offered a reduced settlement of only 25% of the debt, but could not validate the debt for us. Here is my thought: 1) I believe the SOL has expired since 30 days since the last payment was received has been over 6 years (Michigan) 2) The fact CACH LLC has not directly tried to sue me, and is only using “firm/agency” to try and collect, tells me perhaps they don’t have enough documentation to take this to court and try a judgement? I will get an attorney if the response is threatening, however, I feel that this could be won IF the SOL is correct or they can’t produce proof of what they are claiming as the debt. As said previously, 3 perhaps 4 different agencies have tried to collect this debt, and usually 2-3 years pass between attempts. My question to you is: does it sound like a “roll of the dice” and see if I pay attempt, with not enough case materials to go to court? I am being somewhat vague intentionally with the details as a “smart collection agency” would read your board for information and I would blame them…great site and very helpful!
Correction: wouldn’t blame them…great site and very helpful!