Credit Card Companies Cannot Put A Lien On Your Home

May 21st, 2009 by Reed Allmand

There are many rumors floating around about what credit card companies can do to collect on outstanding debts.  Some debtors mistakenly believe that a credit card company like Mastercard or American Express can place a lien on a debtor’s home.  This is completely false.  Credit card companies have NO legal right to place a lien on a debtor’s home for credit card debt.  There are only a few types of creditors who would have the right to place a lien on a debtor’s home, two of which include:

  • A mortgage or home improvement lender.
  • State or Federal tax authorities for failure to pay taxes.

It is illegal for a creditor to place a lien on a debtor’s home because of credit card debt and if a collection agent is threatening to do so, he may face sanctions.  If a credit card company wants to use aggressive collection practices such as wage garnishment they would need to go to court to do so.  Credit card debt is an unsecured debt that can be discharged in bankruptcy. If you are facing credit card debt, foreclosure or other financial issues, bankruptcy may help you discharge your debts and get a fresh financial start.  Speak with a Dallas-Fort Worth bankruptcy attorney to discover your options.

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About Reed Allmand

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Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."

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