QUESTION
Can a Credit Card Company take my mothers home?
Asked on Jan 31st, 2013 on Debtor and Creditor - Georgia
More details to this question:
My mother owes a credit card company around $5,000.00 in unsecured debt and she has not been able to pay it for over 6 months due to rising medication cost and other expenses.
The credit card company keeps calling her saying they are going to " take her property" if she doesn't pay. We sent a letter stating a Hardship request as she is 78 years old and only has SS and a small retirement from the school system
I know they can't garnish her SS or retirement which is $124.00 per month, but can they take her house or assign a Lein?
Any help would be appreciated.
Thanks,
Terrell
1 ANSWER
Bankruptcy Attorney serving Collegeville, PA
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According to the due process clause of the U.S. Constitution, no one can be deprived of life, liberty, or property without the due process of law. That means that a claimant must sue first and give the debtor the opportunity to defend herself. If there is a judgment, they can collect on that by taking property. Some states have a very good homestead exemption which would protect her home. I don't know what Georgia's exemptions are. Your mother could consider a bankruptcy to eliminate the debt and should consult someone in her area.
If the person who called was a debt collector, they could be liable for violation of the Fair Debt Collection Practices act as is prohibits harassment and false statements.
Answered on Jan 31st, 2013 at 5:09 PM