Legal Question in Credit and Debt Law in California

Re: Charge card and credit card debt to Amex - Can they seize property?

American Express may "legally" be entitled to repossess some of the property you purchased with their card(s), depending on what your cardholder agreement says. However, while they may "legally" be able to do so, they probably won't. What they probably will do, is sue you for the amount owed. If that happens, and they obtain a judgment against you, they can then "enforce" that judgment in a variety of ways, including wage garnishment, and levying on your bank accounts, among other things. California law provides a number of "exemptions" which a debtor can claim. These "exemptions" preserve your rights to keep certain kinds of property, up to a certain value. These exemptions mean that your creditors cannot use certain assets to satisfy their judgment.

Once you are served with a summons and complaint, in California you have 30 days to respond by filing a document with the court. If you fail to respond properly, you lose the right to defend the action, and a default judgment will be entered against you. Therefore, it is important that you see an attorney immediately if you are served with a summons and complaint.

The best advice would be for you to talk to an attorney whose practice emphasizes bankruptcy. It is possible to discharge unsecured debt through the filing of a Chapter 7 bankruptcy. You may also be eligible to file a Chapter 13, which would allow you to repay your creditors.