Legal Question in Credit and Debt Law in Maryland

Re: Credit card bills

You cannot be forced to sell your home for credit card debt. The creditors first have to obtain a judgment of default and then attach to assets before any encumberance applies. You may want to consider consumer credit counseling as an option, but you should understand that the agreements that are reached as a result may lower your credit rating. Nonetheless, consumer credit counseling may show you a way to avoid default and in doing so help you save you credit. Many such services are available.

A default or series of late payments or penalties affects you FICO score and this is the score that many creditors use to assess your credit status. If you are experiencing serious difficulty in making your payments, you may consider filing for bankruptcy. However, bankruptcy will certainly affect your credit score for many years.

The type of bankruptcy filing that may apply to your situation, if such should be applicable, should be discussed with an attorney.

Other arrangements can be made with creditors in lieu of filing for bankruptcy. You should ensure that any compromise settlement with a creditor is legally effective. Consult an attorney in this regard.

DISCLAIMER: This e-mail does not constitute legal advice but rather general information about the law. If you require advice that is specific to your situation, you should obtain the assistance of an attorney. This communication does not form an attorney-client relationship and such an inference should not be taken by any reader of its contents.

Re: Credit card bills

You can't be forced to sell per se. The credit card companies can sue, get judgments, and collect, and one way they can try to collect is to execute on your real estate, in which case the Sheriff would sell the house if it comes to that. However, if your house is owned by the entireties with your spouse and the credit card debt is in your name only, creditors can't reach your house.

You should consider talking to a bankruptcy lawyer sooner rather than later. The earilier you try to address this problem, the easier it will be to save your house. I practice bankruptcy law throughout MD (as well as DC and VA), so feel free to contact me if you wish to discuss this matter further.