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Hello,
I have a question:
I have about $50k in UNSECURED credit card debt. I own property in my state free and clear and also have bank accounts with major
banks. Could someone please tell me if the credit card companies can put a lien against my property and levy my bank accounts or does
"unsecured" mean they cannot touch those things?
P.S. This is a purely legal question, please no "moral" answers,only facts. Thank you.
Most all credit cards are unsecured meaning the item(s) you purchased with those credit cards.
It's does not mean anything else.
They will probably sue you for the amount owed and in most cases if they win they will either garnish your wages or force the sale of an asset to be paid.
But it has to be all done in court with a lawsuit. Depends on your state laws and of course the judge.
You are asking a legal question that really needs to be answered by an attorney but I thought I would jump in and let you know what unsecured meant.
I agree with Sunny-Days90 this is a legal question that needs to be answered by an attorney. But if you are just researching right now, the following link should prove useful:
What I am trying to figure out is if they can foreclose on my house (I have >$50k in equity) or if it's possible that one day I check my bank account and it's missing the $50k because they levied my bank account.
This happened to my friend, he checked his bank account one day and it was missing a whole bunch of money - turns out it was a valid levy but he had no idea he was sued - they sued him in New York 2 years after he moved to California!!! The bank had to debit his acct because it was an official court order! I know for a fact this happened to him, that's why I am concerned...
What I am trying to figure out is if they can foreclose on my house (I have >$50k in equity) or if it's possible that one day I check my bank account and it's missing the $50k because they levied my bank account.
This happened to my friend, he checked his bank account one day and it was missing a whole bunch of money - turns out it was a valid levy but he had no idea he was sued - they sued him in New York 2 years after he moved to California!!! The bank had to debit his acct because it was an official court order! I know for a fact this happened to him, that's why I am concerned...
They cannot force the foreclosure of you house. But a judge can if you cannot pay in another way.
Really depends all on legal issues and your state what they can do.
Your friend debts go with him wherever he moves that is why they could do it, the court order was to debit his account if he did not pay and left the area so they could not collect a possible garnishment.
They will probably go the garnishment route first and if they can not collect it because you quit your job or something then the judge will then take steps.
You really need an attorney on this since the amount is so high.
I can tell you that I am aware of a person who had 45k in cc debt and quit his job, dumped his house and left the state thinking he would not owe it anymore. They found him and he has xx months to pay it back or he will be in contempt of a court order.
So hire an attorney!
** something tells me and I may be wrong if you have equity in your home and if it goes to a judge they will give you a choice to refinance and pay the debt or sell your house to pay the debt so it is important to you to contact an attorney before this goes any further.
On 50k they will probably wipe out most of your paycheck for garnishments so be careful.
They will probably sue you for the amount owed and in most cases if they win they will either garnish your wages or force the sale of an asset to be paid.
The credit card companies don't sue people for debt. They write the debt off and hand it over to scumbag credit collectors. The collection agencies try to intimidate people by taking them to court. The gamble is that YOU (the debtor) either will get scared and start making payments or won't show up and they'll win by default. If you do show up, the collection agency has to prove that you owe all that money, and generally they can't because they don't have the paperwork.
So, to anybody reading this, if a collection agency sues you, make sure to show up in court.
But basically, to answer the O.P.'s question, there really isn't much the CC companies can do if you walk away. Just make sure you know how to handle the collection agencies when they start calling. Check out Bud Hibb's website for more details.
I am afraid they can sue for a judgemjent just like any other creditor. With lower amounts they usually don't tho.In those cases they actually just sale the debt for pennies on the dollar and write off the rest. But that does ahppen with largfe amounts as they often do.Its also pretty easy for tehm to get a judgeent if you owe the maney. Also the collection agenciesw that know their busiensss will also have the debt papers to show. The ones that don't are the little guys who don't even have attornies.
I am afraid they can sue for a judgemjent just like any other creditor. With lower amounts they usually don't tho.In those cases they actually just sale the debt for pennies on the dollar and write off the rest. But that does ahppen with largfe amounts as they often do.Its also pretty easy for tehm to get a judgeent if you owe the maney. Also the collection agenciesw that know their busiensss will also have the debt papers to show. The ones that don't are the little guys who don't even have attornies.
Nope, sorry, but that is incorrect.
Federal Law mandates that after 180 days, if no payments have been made, the CC company must charge off the amount to profit and loss and turn the account over to collections. It is the collection agencies who take it from there.
That is a consumer site that deals with debt collectors and now manyoperate. A credit card company6 i9tself can take you to court as a unsecured creitor juts as a bank can and most are n fact banks. The fact that many do not but sell teh debt and wirte off the excess amount has more to do with now they operate. You need to read thatthey then charge it off and will LIKELY turn it over to a collection agncy after 180 which is three months.In fact what they often do is turn it over to their own collection attroneys when its large amounts.They file a suit which starts the court clock. Smaller amounts are often sold for pennies on the dollar to collection agency like any other debt.The 180 days allows them to turn it over to a collection agency after cancelling the card.
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