What can the creditors of unsecured credit cards do if I am unemployed? - Bankruptcy Law Questions and Answers- LawQA.com

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What can the creditors of unsecured credit cards do if I am unemployed?

I have lost my job and can not make my credit card payments. Do I have to file for bankruptcy to protect my house equity? What actions can they take against me?

Law Office of John C. Farrell, Jr.
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The creditors can still sue you even though you are unemployed. Whether or not it happens depends on the aggressivness of the creditor. With respect to your home, you should file for a Homestead exemption you if have not already. In Massachusetts the home is protected against creditors claims up to $500,000. You can go to the registry of deeds to do this.

Answer Applies to: Massachusetts
Replied: 9/26/2011

Theodore N. Stapleton, PC
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They could file a lawsuit, get a judgment and put a lien on your house so that whenever you sell it they will get paid.

Answer Applies to: Georgia
Replied: 9/26/2011

Answer By Asaph Abrams
Law Office of Asaph Abrams
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Creditors' judgments can effect liens upon real property. This answer (as well as our Web site) doesn't address all facts & implications of the question; it's general info, not legal advice to be relied upon; it creates no attorney-client relationship; it may be pertinent to CA only; it's independent of other answers.

Answer Applies to: California
Replied: 9/23/2011

Answer By Madhu Kalra
Kalra Law Firm
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Creditor may choose to either settle their claim with you at discounted amount or choose to pursue in court by filing lawsuit for debt collection, after obtaining judgment, may record a lien upon your real property, to attach it with the equity in the home, if any.

Answer Applies to: California
Replied: 9/23/2011

Answer By Andrew Harris
Law Office of Andrew Harris
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The credit card companies can sue you and get a judgment against you (which will end up being for a good amount more than you already owe them). A judgment most likely automatically creates a lien on your real estate. Besides the lien, there's 2 things they can do with a judgment: 1) garnish your wages (which you don't have to worry about now, but can take effect if you return to work), and/or 2) put a levy on your bank account, and withdraw any funds you have in there on that random day. I recommend making an appointment with a bankruptcy attorney in your area that offers a free consultation, similar to what I do here in Central Oregon. A bankruptcy attorney will present all your options, perhaps there is a better alternative than simply filing bankruptcy.

Answer Applies to: Oregon
Replied: 9/23/2011

Answer By Bill Zurinskas
Bankruptcy Law Center
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Credit card companies generally work a defaulted credit card obligation with their in-house collectors for approx. 6 mos. At some point they will give up (they usually send you a letter that the debt will be charged off), and, at that time, they may decide to hire an attorney and sue you, or, after charge off, they will sell the debt to a debt buyer or assign the account for collection with a collection agency. Don't assume that if a debt is charged off, you do not owe the debt (unless you receive a 1099). At some point before the 6 year statute of limitations run, you will probably be sued by someone. A District Court judgment can be collected upon for up to 20 years (unless revived).

Answer Applies to: Colorado
Replied: 9/23/2011

Bankruptcy Law office of Bill Rubendall
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If you are unemployed contact your creditors to make an arrangement. If you can't pay them they have the right to sue you. Also, you may want to contact an attorney to discuss whether it makes sense to file bankruptcy.

Answer Applies to: California
Replied: 9/23/2011

Answer By David VanDyke
Bird & VanDyke, Inc.
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They can do a variety of evil things to you, including putting a lien on your home, levying on bank accounts and garnishing wages.

Answer Applies to: California
Replied: 9/23/2011

Answer By Kevin Heupel
Heupel Law
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After a creditor obtains a judgment, the creditor can put a lien on yours, garnish funds in your bank accounts, and garnish wages once you return to work.

Answer Applies to: Colorado
Replied: 9/23/2011

Answer By Katie M. Stone
The Law Offices of Katie M. Stone
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Your creditors can sue you, but until they do that they cannot do anything except for attempt to collect the debt. In Florida, homestead protects the house you live in full time from most creditors filing a lien against it. I would make sure you have homestead on your house (go to the tax collector in your county and ask them the procedure if you haven't don't this already) and contact your creditors to let them know your situation to see if they have any deferment or forbearance while you are going through this tough time. If you don't like them contacting you or attempting to collect the debt, bankruptcy would help make that stop. I hope you found this answer useful.

Answer Applies to: Florida
Replied: 9/23/2011

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