Legal Question in Credit and Debt Law in California
Next Step/s after Involuntary Lien
An attorney firm representing a credit card company won default judgment on approx $8K in outstanding credit card debt (in spouse's name)and now an involuntary lien has been filed on some real estate that my spouse owns jointly with her siblings in Santa Cruz County. What step/s is/are the firm (most likely) to take next? Can/will they ''force'' a sale of the real estate?
1 Answer from Attorneys
Re: Next Step/s after Involuntary Lien
They probably won't do anything with respect to the property. When attorneys file liens on real property, their goal is usually to just wait until the owner tries to see or refinance the property.
Although it is legally permissible to have the local sheriff levy and sell your wife's interest in the property, it is usually impractical to do so. The costs of the levy are pretty high in relation to the judgment and the buyer would only end up being a co-owner with your wife's siblings.
The judgment collects interest at the rate of 10%, so you should probably contact the lawyers to see if you can negotiate a settlment. The judgment will remain on your wife's credit rating at least until it is paid.
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