How Can I Avoid a Credit Card Company Putting a Lien on My House?

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Do not ignore that American Express, Visa, Golden One Credit Union, Credit Bureau USA, Midland Funding LLC lawsuits!  These companies will take their judgments and convert them into wage garnishments and liens on real property.

If you have been sued by Midland Funding LLC or American Express, you will find out when someone hands you or a family member papers.  Typically a debtor has 30 days to respond to the complaint.  Before doing anything else, please  Consider hiring an attorney.  That attorney, even if it is not me, will make sure to file an answer so that you can fight the lawsuit.  By not filing an answer, you are conceding the case.  It will be only a matter of months before you see very negative implications.  By filing an answer, you have at the very least given your self at least a year to determine whether their claim is valid and to enter into tough negotiations, if necessary.

If you ignore the lawsuit, there is not much that can be done.  The credit card company has all the power. They are going to file a judgment approximately a month after the complaint is served.  With the judgement, the creditor can easily garnish wages or put a lien on your house.  To garnish  credit card company.  Eventually, the the credit card company files a default judgement against the debtor, and then files an abstract judgment against the property.

If you cannot come to terms with the credit company, a Chapter 7 can be used to get rid of the debt, along with the wage garnishment and the lien on the house.  However, the process is a little more complicated when a credit card company records a lien.  In a typical bankruptcy, debtors will not personally liable for discharged debts or a valid lien from a credit card judgment.  However, the lien will attach to the house.  It will need to be paid when you sell or refinance the property after the bankruptcy case is filed.

In the chapter 7 bankruptcy, a special motion will need to be prepared and presented to a bankruptcy judge to cancel that lien.  This motion will add to the cost of your bankruptcy.  Once that has been done, the abstract judgment will be made unenforceable.

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