Can they put a lien on my house? Garnish wages?
I have a few credit cards that are way overdue way over limit....I lost my job....When they send to Collection...can I lose my house? Can I be sent to prison? We are talking a huge Credit Card Dept with two different banks...Mortgage is up to date current and with different bank...
Debtor's prison went out centuries ago. If a debt collector claims you will be arrested or sent to prison, they are violating FDCPA.
Sending to collection alone does not allow them to place liens or garnish wages. They must first take you to court, win, and obtain a judgement.
If they get judgements, they may be able to put liens on your house, or possibly garnish wages. Of course, if you don't have a job, it's a bit hard to garnish anything. What they can do depends on state law.
Ok so how does judgement work? If the house is financed by both spouses..could I just tranfer full title to my spouse? I am so far down the line that I cannot afford to pay this forever and be at the same balance forever....How do i make this go away...aside from obvious huge cash settlements.......how do they get judgement?
First take a look at your overall picture:
What debts do you have? At what rates?
What assets and equity do you have?
What monthly after tax income do you have?
What monthly expenses do you have?
What opportunities to increase income, or decrease expenses, do you have?
Watch how quickly they can freeze and empty your bank accounts too. That can happen even before you receive court papers.
It depends on the state, check you state attorney general's office website.For example, in Texas they can not seize a homestead or garnish your wages, and they will be hard pressed to seize other real estate or assets. My attorney also told me that before they can wipe out your bank account they will have to get a court order first, and for that they need to jump through all sorts of legal hoops to prove that they tried to get money out of you and you didn't cooperate. They'd also have to get a judgement first, and for that they will have to validate the debt with you first. Did you get a letter from attorneys yet? Did you get the validation letter yet? Did you dispute it? If it's not too late, try settling with the CC for a payment plan on a lower balance. Even if they don't budge and send it for attorney placement, you can show you tried, just be sure to document everything. Best to send a letter by certified mail with return receipt, and track it. Also, READ YOUR CARDMEMBER AGREEMENT again. Request the latest one.. There's a few good posts on validation, dispute letters, etc, in this forum.. Good luck..