Can a credit card company or their collection agencies put a lien against your property which can then be paid on or do they automatically take you to court to take the property?

Answer

Before a creditor can place a lien against real property, garnish wages or bank accounts or take any action against a debtor due process must be followed. This means the creditor/collector must file a lawsuit in the appropriate court in the state where the debtor resides. If the plaintiff/creditor wins the suit a judgment will be granted, a judgment can then be executed in whatever way is allowed under the laws of the state. In some states a forced sale of property is not allowed, in those states that do allow the action the homestead exemption will usually protect the primary residence. It is very rare that a judge in any state will allow the sale of a home to pay creditor debts. Some collection law firms such as Mann-Bracken are licensed for arbitration, this means some of the steps in a lawsuit can be by-passed in some situations. Nevertheless, the basic premise still applies, the debtor must be notified of a judgment and given the opportunity to claim personal and real property exemptions that are allowed under the laws of the state. When being sued for debt or for any reason the best option is to obtain legal representation or at the very least legal advice. Most attorneys offer free or minimal fee consultations, and referrals can be obtained from the state bar association or the American Bar Association, http://www.abanet.org

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