[chris369145]

Hello:

I have a myriad of financial issues at this point in time. I have about 65k of unsecured debt. I have no assets with equity in them. My home is fully mortaged with no equity. I am falling behind on my unsecured debts and I am worried that they will file a lien on my home residence.

Here is my question. My wife and I have both of our names on the bank lending agreements and both of our names are on the title. I am contemplating signing a quit claim form and registering it with the county recorder office. I realize that I would be transferring my outrigtht ownership of the home to my wife, but I do not want any liens on my home.

If the quit claim is signed, notarized and filed with the recorders office can credit card companies file a lien on my home if I do not have my name on the title or deed?

Thanks


Jacob12

[DiTryin]

Hi Chris,

Credit cards are ** unsecured ** debt so credit card companies cannot put a lien on your house. All they can do is hound you with collection calls.

Do whatever you can before your credit gets ruined. Contact your credit card companies and ask them for help. Many will set up a payment plan with you.

One thing most people don't know is that if you contact those credit counseling services, it looks bad on your credit so avoid that if you can.

Good luck!

Diane

[ScottGem]

Diane is mostly correct. In most places, a primary residence is exempt from a lien for unsecured debt. But its not an absolute statement that they cannot do it. However, its highly unlikely. Even if they do put a lien on your home, it would be at best a secondary lien. It would mean that the lien would have to be satisfied only at the time of a sale. They cannot force a sale or seize the home. Also, as a secondary lien they would only get money after all secured debts are paid.

Bottom line here is I wouldn't worry about this. If and when they sue you for the debt, you can then do things to protect your assets.