I owe 40,000 in unsecured credit card debt. I own my home outright. I am on public assistance and going to school. I am a single mom of 5. I live in the state of Maine. Can they take my home? Can they force me to sell? I will not be able to pay until im done with school in 4 years. Im six months behind in my bills. They already are taking me to court, havent been served yet but they told me so. If they "just" put a lien , how bad does the interest add up? What happens if I ignore it until I die? Will my children be forced to sell it? Can they keep it? So upset and confused.
2007-03-21 12:20:24 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
absolutely not unless you use the equity in your home to pay them off. never use the equity in your home to pay unsecured debt. contact consumer credit counseling as they can lower the amount owed and even in some cases eliminate the interest. if that is not a possibility for you then it may be prudent to file for bankruptcy. most credit card companies only harass and threaten you. they rarely follow up with court action and even if they do the only thing the court can do is order a judgment against you. this will show on your credit report until it's paid or a settlement is reached between you and the companies or the statute of limitations runs out and it has to be removed. in short they are mostly just trying to scare you into making payments you can't afford. many states have a statute of limitations on how long the default remains on your credit report. the time for the limitation starts on the date your last payment was received, so if you make a payment every once in a while the "clock starts over" each time. this is a reason the companies will try to talk you in to paying even a little on your balance, so in this case nothing IS better than something. Good Luck and Don't Worry! They Can Not Touch Your House.
In most states, if you qualify for public assistance you will also qualify for free legal help. Call your financial worker tomorrow and ask for information on Legal Aid.
2007-03-21 12:26:16 · answer #1 · answered by 1dayatatime 4 · 1⤊ 0⤋
First of all... is the title in her name.. if the house is in someone else's name they can not put a lien on it or take it.. the other person did not incur the debt. Secondly, in many states there is this thing called a Homestead Title... so if a person is broke and they owe money to anyone except the government, there is nothing anyone can do. If she owes the state, County, or IRS money they can put a lien on her home and take her house.
2016-03-28 22:45:27 · answer #2 · answered by Anonymous · 0⤊ 0⤋
There is a reason a mortgage is called a 'secured' debt and a credit card is called an 'unsecured' debt. If you die with outstanding debt. Your heirs can't inherit anything until your debts are paid. They would probably have the option to pay the debt in order to keep the house. The credit card company doesn't really want a HOUSE. They just want money.
2007-03-21 14:18:19 · answer #3 · answered by STEVEN F 7 · 0⤊ 3⤋
I don't think a credit card company can take your home. But, I do believe that if you're taken to court you might have to refinance in order to pay. In fact why dont you refinance your home and pay them all off. Or at least try to settle for a smaller amount. Most companies will work with you if you just give them a call. If they get nasty with you, then just hang up. They are not supposed to threaten you or cuss you out. You can report them.
Consult with a lawyer or paralegal. There are free consultations.
2007-03-21 12:28:51 · answer #4 · answered by ROCKY 2 · 1⤊ 2⤋
They can not take you home but what they can do after they take you to court and get a judgment is file a lien on your home since it's free and clear there will be no other creditors in front of them. Judgments can stay on your credit for up to 20-years because all they have to do is keep refiling them.
2007-03-21 12:30:16 · answer #5 · answered by ? 7 · 3⤊ 1⤋