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nh_webuser · May 17, 2007, 04:40 PM

OK, no answer on the first Q yet... but does anyone know about the Homestead Exemption? I see sites that post cases where people have used that while in bankruptcy court to avoid a lien on their property. Im not in BK court, this is small claims for an old debt 5K. Im in New Hampshire, thanks

Fr_Chuck · May 17, 2007, 05:03 PM

I have seen the homestead exemption used in bankrutpcy court to keep the equity of their home from being included in disposable property in bankruptcy ( not a "lien" ) I am not aware of bankruptcy court putting a lien on anything except to sell off property that is out of their exemption values, this applies to cars, personal property, money in the bank, bankruptcy court has exemption values on most things.

Of course I don't know every state law ( 50 of them plus DC) but in the areas I have lived, no this has no bearing on a lien being placed on the home. But many states just will not allow a lien be put on a home from a personal debt. Not up on yours.

nh_webuser · May 17, 2007, 05:31 PM

Thanks Chuck... I had a bit of a hard time following your response. I am not in BK court, Im going to Small Claims next week over an unsecured credit card debt. I just mentioned I had seen that Exemption used in BK cases. I was wondering if it can also be used in my case where a collection agency is trying to put a lien of $ 7100 on my house.

Im going to take my 1st and 2nd mortgage statements, my last appraisal (2002) and a recent real estate appraisal with me to the judge next week. Hopefully I can raise the Homestead Exemption and not get a judgement of a lien. I also just finished reading that if you go to the county recorder's office and file a Declaration of Homestead, that fends off these kinds of liens.

Im really getting the feeling that this lawyer's attempt with all the paperwork and letters thrown at me in the last 2 months is to scare me into paying. If I had the money to do so, I would. I guess Im headed before the judge and that is fine.

Fr_Chuck · May 17, 2007, 05:40 PM

And of course if they have a judgement, getting a lien is about the last thing they want to do, they should try to attach your bank accounts, garnish your wages and so on.

Since with the lien on property they can not force a sell, only wait till you sell it at some pont in the future to get their money,

nh_webuser · May 17, 2007, 05:46 PM

So when can they attach the bank accounts, garnish wages etc. At this court date? Or do they have to file separate papers and get date for that? I requested going before the judge on the original Writ of Summons and then this property lien paperwork came at me. I am currently unemployed and job seeking so good luck to them on garnishing wages. I don't have much in the bank either but plan on taking some cash out tomorrow.

ScottGem · May 17, 2007, 05:47 PM

Most states do not allow a primary residence to be attached for unsecured debt. Even if they were able to place a lien against that proiperty that's all they can do. All a lien does is prevent you from selling the property until the lien is satisfied. If you have a first and second mtge, such a lien will only take a tertiary position.

Fr_Chuck · May 17, 2007, 05:55 PM

Once they get the judgement, then they are free anytime after that to file the papers for attachment or garnishment, you will not even be notified they are filing those, they may do it the same day or the next week,

Normally the threats to put a lien on the home is just that, threats to scare you to try and make you pay up the money. As scott said, most states don't allow it ( some do) but it ties up their debt till you sell the house, which could be 50 years down the road.

nh_webuser · May 17, 2007, 06:19 PM

Thank you both. This lawyer that is representing the collection company lives an hour south from our courts, over the Massachusettes line. Im going to see if she brings the proper paperwork to validate the debt. Ive never gotten anything from them listing the debt and my payment history. So first Im going to state that I question the statute of limitations.

Secondly Im going to bring up the Homestead Exemption. I just read that most collection attorneys and the like don't know about it and how it protects the homeowner. Tomorrow bright and early Im off to the county recorder's office to file the Declaration paperwork. I'll hand her a copy of it when Im in court.

Thanks for everything you two. I will let you know what happens after my court date next week. Hopefully Im like a lot of the people on here and I win :)