Credit Card Companies and Liens on Your Home
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’s Illegal for a Creditor to Place a Lien on Your Home
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. Set up a free consultation with the bankruptcy attorneys at Allmand Law to discover your options.