2007-02-12 13:23:05 · 4 answers · asked by Anonymous in Business & Finance ➔ Credit
The only possible thing that could happen would be this....You don't pay, it goes to court, they get a judgment, they put a lien on your house. It doesn't mean they take it or anything, you just can't sell it without them getting their money first from the sale. And ignore the guy above me...probably some rip off artist. (Or some loan consolidation place.)
2007-02-12 13:47:29 · answer #1 · answered by ♥ Mary ♥ 4 · 0⤊ 0⤋
No. Credit card debt is unsecured debt governed by consumer law.
If you default on your credit card the creditor can sue for breach of a written contract. If the creditor receives a judgment, then the creditor would have the option to go after your assets. After receiving a judgment, they would have to sue to garnish or get a lien. If they want to garnish for payment, they would look for bank accounts (did you ever do a check on the phone or do you owe a creditor at the same company you have your accounts?) and W2 earnings. If they find out that the only asset they can go after is your home, they can go to court again in an attempt to get a lien against your house.
They have to get the judgment within 3 years, which is the debt statute of limitations in South Carolina. Each creditor would have to do this individually.
The credit card debt is unsecured debt. There is a lengthy process to make it secured by your house. Even if they are successful at getting the lien, they still can not force you to sell the house. They get paid only if you sell or refinance your home. They get paid AFTER your mortgage lender(s) and any mechanic's liens. There may not be enough equity to satisfy all lien holders. Obviously, this can be a very long time and the court process is expensive and the rewards to the creditors is so speculative that the creditors would have to have a very compelling reason to take this action.
If you are asking this question because a collector threatened you with the action, you can point out that under the Fair Debt Collections Practices Act (FDCPA), it is against the law to threaten to do something they have no intention of doing. If you find yourself in this position, the time to take action with a CCCS, settlement company or bankruptcy attorney is now. You can call me at 800-859-1928 X100 if you like and I can point you in the right direction.
2007-02-12 13:48:34 · answer #2 · answered by CJ 2 · 0⤊ 0⤋
No, you can't lose your home. They can put a collection or judgement on your credit report, they can even take you to court for the money, but they can't take your house, throw you in jail or anything like that. They may threaten to do those things, to scare you into paying them,but they can't do any of them.
2007-02-12 13:54:07 · answer #3 · answered by kelly h 3 · 0⤊ 0⤋
I live in Santa Cruz also but they don't take a home away for credit card debt.
2007-02-12 13:27:43 · answer #4 · answered by Brick 5 · 0⤊ 0⤋