Legal Question in Credit and Debt Law in California

Credit card debt

I have a credit card balance that has been turned over to a legal collections firm. I am trying to negotiate a settlement. They are suggesting a payment plan with a lien against my house. I am not disputing the debt and can pay a reasonable amount per month to solve the problem, but the lien has me worried. Do they have the right to do that when I am agreeing to pay with agreed upon terms?


Asked on 3/02/07, 8:38 am

1 Answer from Attorneys
Jonathan Stein Law Offices of Jonathan G. Stein

Re: Credit card debt

Do NOT, let me say that again, NOT agree to a lien on your home. There is no mechanism for them to get a lien unless they get a judgment or you voluntarily agree to it. If you agree to it and you miss a payment, they could try to foreclose on the home. Unless the debt is a large amount, it would be an unusual request from them. Do not give them any extra power in this.

For more about debt collection and to see if you think they may have violated state or federal law, visit my blog at http://www.californiadebtblog.com

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Answered on 3/02/07, 10:08 am


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