Can they take your house if you stop paying credit cards?
If your only income is Social Security and Unemployment, your car is not paid for, your house is the only asset, can they put a lien on it?
- CatDadLv 71 decade agoFavorite Answer
If they take you to court and win a judgement, they may place a lien on your house. A lien is only good if you voluntarily sell your home. They can never force you to sell your house against your will.
- Anonymous5 years ago
Eventually the credit card companies may take you to court for the money you owe them, they will at that point settle the debt with you for less than you owe to be determined by you and the lender or they will get a judgement against you. Once they have a judgement against you they can put a lien against your house and bank accounts or paycheck. A lien against your house means that once you sell it if there is a profit they get paid they cannot force you sell your house, a lien on your bank account or paycheck means they can take whatever money is owed to them that is in your account or something like a maximum of 20% of your paycheck. They can also ask the judge to force you to sell your boat and other registered cars but that's probably unlikely unless they are worth substantial amounts of money . At any point though you can declare bankruptcy and as long as you don't have too much equity in your home you can keep your home and a couple cars however the bankruptcy judge would force you to sell your boat and extra cars unless you say one of the cars is used for a buisness and it's not worth too much or that the kids help with bills and need the cars etc.. (there are different excuses that may work). You are allowed certain exemptions(things you don't have to give up in a bankruptcy) the level of which is partly determined by your state's rules for bankruptcy. But in general they really can't take anything from you just put liens against your posessions and garner your paycheck and bank accounts which is the big threat. A bankruptcy wipes it all out though and lets you keep your house providing you don't have a lot of value in your home. Keeping the boat and extra cars long term may be tough especially the boat that's considered a luxury item I doubt you'll get to keep that it depends on how ruthless the lender is and the judge etc... but in a bankruptcy the boat is gone. Talk to a bankruptcy attorney in your state and find out your best plan of attack there are a couple of different kinds of bankruptcy that might help you and you need to know as much info as you can get your hands on right now. Also if the creditor see's you only own a trailer and the other stuff isn't worth much they may not bother with you especially if you assure them you will declare bankruptcy if they do etc.. So many what if's etc. hard to say for sure, start planning now...
- ?Lv 71 decade ago
Yes since that is the only asset you have. The do not take it they put a lien on the deed. Means you cannot sell the house till the lien is paid
- Judge JulieLv 71 decade ago
There is a way to protect your interest in a house, its called "homesteading". You fill out a form - pay a small fee, and send it to the government - and your home cannot be taken away from you, any lien holder must pay you $50,000 in order to have your house to satisfy any debts. Also, any creditor can put a lien on your house, but until it is sold or transferred - they cannot collect anything.
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- yahoooo!Lv 51 decade ago
in my understanding, if you can't pay your mortgage, you will be at default, and then foreclosure. they will give you chance to collect the amount that you owe them and the interest to pay so you will be back in normal. your car, credit card debts are different - they will be connected if all of them are not paid on time for any reason. that is how you will lose your car, house, and other possesion that is on loan - by missing payments.
when you stop paying on any of the three loans including credit cards, you cannot borrow from your house because you will not be qualified for any loan because not paying your car or your credit carr will make your credit report not qualified to loan money to. okey?
- 1 decade ago
But if you have no other source of income, then how they have financed you for the car. Anyhow if the car has been financed, they need to follow certain procedure, like sending you a legal notice initially, then may sue you & rest depends on the verdict of the court.
- jfs1988Lv 61 decade ago
Your unpayed bills will go to collections. Keep paying your mortgage bill. Its better not to take any risk. Its tough being only on Social Security and Unemployement.