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    clarkemrt's Avatar
    clarkemrt Posts: 3, Reputation: 1
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    #1

    May 16, 2006, 04:12 AM
    Credit card debt
    Can a credit card company clam from your house ?
    Curlyben's Avatar
    Curlyben Posts: 18,499, Reputation: 1860
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    #2

    May 16, 2006, 04:23 AM
    Please have a look at this thread, it may help:
    https://www.askmehelpdesk.com/credit...use-24876.html
    fredg's Avatar
    fredg Posts: 4,926, Reputation: 674
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    #3

    May 16, 2006, 04:51 AM
    Hi,
    No, they cannot claim your house.
    They can, however, have a lien put on it, so if it's if ever sold, they get their money.
    clarkemrt's Avatar
    clarkemrt Posts: 3, Reputation: 1
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    #4

    May 16, 2006, 05:00 AM
    Hi fredg
    Thanks I did not think they could get there hands on it ,
    Its my brothers debt it will be a long time before I sell thanks clarkemrt
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #5

    May 16, 2006, 05:51 AM
    First, as Curly pointed out this issue has been discussed several times. You might consider searching the boards before posting a question. Frequently you may find the answer already posted in a previous thread.

    Second, the other answer you got is only partially correct. Its true that a creditor (other than the one holding the primary mortgage) cannot seize a primary home for a debt. However, there are limits to who can attach a lien to a home. Generally, the only debtors that can do that are those granted a mortgage by the owner and those that did work on the property (referred to as a mechanic's lien). Credit card companies have unsecured debt therefore they cannot put a lien on real property only cash assets.
    clarkemrt's Avatar
    clarkemrt Posts: 3, Reputation: 1
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    #6

    May 16, 2006, 05:58 AM
    Yes thanks scott it helps a lot thanks again
    clarkemrt
    RickJ's Avatar
    RickJ Posts: 7,762, Reputation: 864
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    #7

    May 16, 2006, 06:01 AM
    Quote Originally Posted by scottgem
    they cannot put a lien on real property only cash assets.
    Are you saying that in no case can an unsecured creditor with a judgment be granted a lien on real property? If so, is there a source citation we can see?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,303, Reputation: 7692
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    #8

    May 16, 2006, 06:01 AM
    I will agree with Scott, the only time I have seen them allow credit card debt to put a lien on a home when the credit card company showed proof that part ( I do not know what part or percent it was) of the credit card debt was used to home improvements or to make house payments.

    i.e. if you were making house payments using the credit card, or if they can prove a lot of home improvement materials ( lumber yard bills) they could try. But basically they want money, not a lien on a home they may never see money from or would not see in 20 years. ** and while this would be possible, I have only even "heard" of a few cases and I am not usre I really beleiveed they did it.

    They will always try to attach money in the bank accounts, checking accounts, and put a garnishment on paychecks.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #9

    May 16, 2006, 06:11 AM
    Quote Originally Posted by rickj
    Are you saying that in no case can an unsecured creditor with a judgment be granted a lien on real property?
    As far as I know, the answer is Yes. A lien is not granted against real property unless that property is used as collateral for the debt or in the case or a workman doing work on the property.

    Here's one cite, from Oregon that appears to bear this out:
    http://www.osbar.org/public/legalinfo/1187.htm
    Here's another, more general, site that is less clear in supporting my position but I believe does support it.
    Legal Definition of 'Lien'
    RickJ's Avatar
    RickJ Posts: 7,762, Reputation: 864
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    #10

    May 16, 2006, 06:15 AM
    Here, I read that an unsecured creditor can get a lien:
    Rights of Unsecured Creditors

    Scroll down to Collection of Judgments.

    clarkemrt, apparently this varies from state to state. What state are you in?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #11

    May 16, 2006, 06:24 AM
    Quote Originally Posted by rickj
    Here, I read that an unsecured creditor can get a lien:
    Rights of Unsecured Creditors

    Scroll down to Collection of Judgments.
    Scroll down further and look at the exemptions. Hard to imagine what other types of real property there might be other than those listed. But homestead is the primary exemption.

    Also, if you read the beginning of that article, it appears it was written primarily for farmers and debt accrued in the course of doing business. Such debt may be considered under the heading of mechanic's liens because they were incurred in the course of doing business.
    RickJ's Avatar
    RickJ Posts: 7,762, Reputation: 864
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    #12

    May 16, 2006, 06:32 AM
    Good point. I did not read that far to see the exemptions for Minnesota.

    I think a debtor would be unwise, though, to assume complete protection; that is, that "in no case can an unsecured creditor put a lien on a home", unless it were confirmed for the particular state he/she is in.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #13

    May 16, 2006, 06:40 AM
    I agree there are seldom absolutes. But I'm very confident in my advice here as well as the incorrectness of the previous advice. I'll amend what I said. It is HIGHLY unlikely that an unsecured creditor could place a lien on a home or most other forms of real property, unless the debt was incurred in the course of work on that property. So unlikely that I would not consider it to be a cause for concern nor would I consider giving advice that it was likely to be good and correct advice. At best it's a remote possibility.

    However, if served with papers for a civil action on the debt, the debtor must not ignore them. An attorney should be obtained and the debtor should most definitely answer any summons.
    fredg's Avatar
    fredg Posts: 4,926, Reputation: 674
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    #14

    May 16, 2006, 06:58 AM
    I am sure there are cases where a credit card company HAS put a lien on property... there are just too many cases for it not to have happened.
    Yes, I read the link given by CurlyBen, and I was giving more information. That is allowed.
    RickJ's Avatar
    RickJ Posts: 7,762, Reputation: 864
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    #15

    May 16, 2006, 07:08 AM
    clarkemrt, I think all should agree at this point that confirming what your State law says about it. We're eager to help: let us know what State your in and we'll see if we can confirm it for sure.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #16

    May 16, 2006, 07:09 AM
    As I have said here, its, at best, a highly remote possibility. I think it does a disservice to an asker to suggest its anything more than that. Frankly I doubt if it ever happened.

    As for the link that CurlyBen provided, My comment was solely for the OP's future benefit. However, since you bought it up, I don't believe you did add any info to that thread.
    fredg's Avatar
    fredg Posts: 4,926, Reputation: 674
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    #17

    May 16, 2006, 07:11 AM
    Hi, clarke,
    Here is some more information about Credit Card Companies and liens on homes:

    :: Can credit card companies put a lien on my house?
    "A lien means that the property would not be able to be sold without first paying off the debt. Her income if social security should be exempt from collection efforts, but the house is not safe. She may need to contact an attorney and look into possbility of filing bankruptcy to clear the debt before they move in on the house."
    Texas State Law will NOT allow Credit Card companies to get a house, or a lien.

    Re: Credit card payments question, please help!

    "Question: Can a credit card company put a lien on your house?
    Answer: Generally speaking, no. Most credit cards are "unsecured," which means they have no collateral
    they can repossess if you default on your payments. The only remedy they have if you don't pay them is to
    sue you. However, in Indiana, if someone sues you and gets a judgment against you, that judgment will attach
    to your real estate as a judgment lien. So, while credit cards cannot put a lien on your house for
    non-payment, they can eventually sue you, and the judgment can attach to your house as a lien."
    Above from: 3

    As the previous answer stated, it would help to know the state you are in, for further research. The State Laws do vary, and in general, if the Credit Card company wishes to sue, and wins, then what they can do depends on your particular State.
    Best wishes.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #18

    May 16, 2006, 07:29 AM
    Quote Originally Posted by fredg
    Hi, clarke,
    Here is some more information about Credit Card Companies and liens on homes:
    Well your first cite supports what I have been saying. I'm not sure I agree with the second cite without seeing the applicable Indiana law. While there are differences from state to state, most follow the UCC. And its extremely rare for courts to allow judgements to attach real property, especially a primary home for the payment of unsecured debt.

    This site shows that homes can be exempt from bakruptcy in Indiana, which is more severe that a civil judgement

    Bankruptcy in Indiana - Indiana exemptions
    RickJ's Avatar
    RickJ Posts: 7,762, Reputation: 864
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    #19

    May 16, 2006, 07:45 AM
    Let's keep this thread on track with trying to confirm what is right for clarkemrt... which will be dependent on what state he's in.
    mr.yet's Avatar
    mr.yet Posts: 1,725, Reputation: 176
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    #20

    May 16, 2006, 04:22 PM
    Interesting reading about purchased debt. Everyone should read.


    The article has a quote from Charles Pona, president of the “National Association of Retail Collection Attorneys” which states: “Now, collection attorneys also see debt purchasing as a good investment opportunity and more lawyers are getting into the debt-buying game.”

    Also attached is a printout of the homepage of a website called “DEBT SELLERS US” which states: “Interested in purchasing prime bankcard debt directly from the bank that has never been worked by any collection provider? All paper can be previewed or spread before purchase. Minimum purchase is $10,000. Paper can be purchased by State or County. Prices starting at 4¢ on the dollar. Over $4,000,000,000.00 available for immediate sale.”

    If any attorney that buys debt and then claims to represent the Original Creditor is committing fraud upon the court. This is how it must be approached. If the Debt Collector can provide proof of claim then by all means "pay." I have found that when challenged the lying bottom feeders will cave and thus show just what they really are, liars and thieves.

    In any case, the third party dept collector (DC) may be challenged to prove that you, or anyone, actually owes the dept. Usually this can be initiated, within 30 days of the notice from the DC with a Verification of Dept (VoD), Remember, you should act in a timely fashion, the DCs have a number of tactics that they may use against you, counting on your failure to respond, being one among many.


    I am not against "paying" any lawfully owed debt and I will conditionally accept the offer to perform upon proof of claim. That proof being a bona fide contract with wet ink signature. No proof, no claim

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