QUESTION
If I default on my credit cards, can they take my house?
Asked on Mar 31st, 2013 on Bankruptcy - Michigan
More details to this question:
I owe over $30,000 in credit cards. I owe $138,000 and the house is worth $300,000. Can they take my invested cash if I default on my credit cards?
5 ANSWERS
In theory they can but I have not heard of a credit card law firm foreclosing on a house.
Answered on Apr 01st, 2013 at 3:07 PM
Debt Collection Attorney serving Chicago, IL
Partner at
Edelman, Combs, Latturner & Goodwin, LLC
2 Awards
In Illinois, a judgment is enforceable against a home, assuming that the home is titled solely in the name of the judgment debtor. The creditor has to pay off any mortgages on the house and also has to pay the consumer the homestead exemption. For this reason, actual sales of homes to satisfy judgments on unsecured debt are rare. A more common collection strategy is simply to record the lien on the house; it can remain there for over 20 years and would have to be satisfied upon any sale of the property.
Answered on Apr 01st, 2013 at 3:06 PM
File for bankruptcy and they can not
Answered on Apr 01st, 2013 at 3:06 PM
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
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Depends, but generally yes. The general principal is all of your assets are eventually available for payment of all of your debts.
Answered on Apr 01st, 2013 at 3:03 PM
Bankruptcy Attorney serving Phoenix, AZ
at
Law Office of D. L. Drain, P.A.
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It depends on the exemption laws of the state where you live. Each state has a list of exemptions, which is property that is protected from creditors. Exemptions differ dramatically state to state. You can also talk to a good bankruptcy attorney in order to determine your rights.
Answered on Apr 01st, 2013 at 3:03 PM