QUESTION
Can a credit card company put a lien on the home to recover the debt after she passed away?
Asked on Nov 30th, 2012 on Estate Planning - Maryland
More details to this question:
She and my father have a house in both their names and no other assets. The credit card was only in her name.
15 ANSWERS
Shadi Ala'i AlaiShaffer
Yes they can. You need to consult with a Trust Attorney to see what needs to be done for the estate.
Answered on Dec 02nd, 2012 at 6:58 PM
Business Planning Attorney serving Livonia, MI
at
Frederick & Frederick Attorneys at Law
Update Your Profile
Credit card debt is unsecured debt. Creditors normally do not get the right to secure unsecured debt. They can make a claim against the estate. If there is no estate, then they are basically out of luck. Assuming the husband was not responsible for the debt, in any way, any property passing to him would avoid the creditor's claims, as well. The only way a creditor would be able to put a lien on the property is if they were able to get a judgment against the husband and/or the estate. This is pretty unlikely.
Answered on Dec 02nd, 2012 at 5:40 PM
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
Update Your Profile
In Michigan the lien would be invalid.
Answered on Dec 02nd, 2012 at 5:37 PM
Credit card debt is usually unsecured. In order to obtain a lien on your property, the debt would have to be in default and the credit card company obtain a court judgment. It can then enforce the judgment by filing a lien on the property.
Answered on Nov 30th, 2012 at 1:17 PM
Generally not since there are protections for homestead from unsecured creditors. I assume the Estate has been probated. If so, they will need to file a claim with the Executor.
Answered on Nov 30th, 2012 at 1:07 PM
Tax Attorney serving Portland, OR
at
Bullivant Houser Bailey PC
Update Your Profile
If the home was tenancy by the entireties (or other survivorship) property, the credit card company can't do anything in Oregon to lien the property after her death. If it was owned as tenants in common, the credit card company could make a claim in her probate that would be satisfied from the equity in the home.
Answered on Nov 30th, 2012 at 1:06 PM
Probate Attorney serving Newport, OR
at
Minor, Bandonis & Haggerty P.C.
Update Your Profile
In Oregon, husband and wife almost always hold real property as "tenants by the entirety." Theoretically, the credit card company could lien HER interest in the home; but they have no right to interfere with HIS interest in the home (unless she used the card for "expenses of the family," in which case he could be liable).
Answered on Nov 30th, 2012 at 1:05 PM
For a creditor to obtain a lien on the property it must first sue, obtain a judgment and then apply for a lien. Most credit card companies don't want to go through that process. However, your father could be liable for the debt as her surviving spouse. You should consult a probate attorney to review all of the facts and advise you.
Answered on Nov 30th, 2012 at 11:58 AM
Putting a lien - called an execution against real property in Michigan - first requires the credit card company to obtain a judgment against her. If her interest in the home is divisible from your father and passes to another person within 10 years, her estate would be required to pay the debt. If the home passes automatically to your father because they are joint tenants with full rights of survivor ship, the lien of judgment would not attach to your father's rights. However, if he died first, the lien would attach to her entire interest.
Answered on Nov 30th, 2012 at 11:57 AM
Trusts Attorney serving Sacramento, CA
at
Law Office of Victor Waid
Update Your Profile
Only after the credit card company has obtained a judgment as she. As long as title remains in her name.
Answered on Nov 30th, 2012 at 11:56 AM
Probate Attorney serving St. Louis, MO
at
Edward L. Armstrong, P.C.
Update Your Profile
For a credit card company to put a "lien" on a house before or after death would require a lawsuit be filed. If the company did not sue your mother while she was alive, they would have to file a claim against her estate and, if the claim was not paid they would have to sue the estate to obtain the necessary judgment to get a lien against the home.
Answered on Nov 30th, 2012 at 11:56 AM
Thomas Edward Gates
Normally, the credit card company would submit a claim to the estate. Regardless, they need to be paid if the estate is solvent.
Answered on Nov 30th, 2012 at 11:55 AM
Trust Attorney serving Cincinnati, OH
at
Paul A. Nidich Attorney at Law
Update Your Profile
No. A probate estate must be opened, and the credit card company would have to file a claim in the estate.
Answered on Nov 30th, 2012 at 11:55 AM
Elder Law Attorney serving Auburn Hills, MI
at
Byers & Goulding, P.L.C.
Update Your Profile
No; the credit card company cannot place a lien on the home in this situation.
Answered on Nov 30th, 2012 at 10:31 AM
Alternative Dispute Resolution Attorney serving Baltimore, MD
at
Whiteford, Taylor & Preston L.L.P.
Update Your Profile
It depends on how the house is owned. If the house is owned as tenants by the entireties, then the house would pass to your father free of the debt. If the house is owned as tenants in common, then one-half of the house would pass to your mother's estate, and the credit card company could file a claim against the estate.
Answered on Nov 30th, 2012 at 10:30 AM