Legal Question in Credit and Debt Law in Massachusetts

: lien on house

I agree with Ray, except as to the placement of a lien. A lien is usually something that is obtained as a result of filing a complaint, and seeking a lien from the court. Short of this, I do not see how they can get a lien. Maybe there is something peculiar about your agreement with them;

A creditor does not have to settle your debt. Debt settlement companies try to get you a deal. Sometimes they even succeed. Maybe there are other options.

Re: lien on house

Pursuant to Massachusetts Rules of Civil Procedure 4.1, a plaintiff creditor (in this case the finance company) can place a prejudgment lien on the real property of a defendant debtor to secure property necessary to satisfy a potential judgment. The plaintiff must prove; 1) a reasonable likelihood of success on the merits of the case, 2) a reasonable likelihood the plaintiff creditor will recover a judgment which equals or exceeds the amount sought to be attached and 3) the defendant debtor does not have liability insurance which covers the amount of the debt. The caveat is each debtor within the Commonwealth of Massachusetts has a $300,000 homestead exemption in the equity of their primary personal residence pursuant to Massachusetts General Laws Chapter 188, Section 1, as long as a "declaration of homestead" is properly filed. Certain exceptions apply to this exemption. Feel free to contact my office for a full explanation of the specifics of this exemption.

Re: lien on house

No one is obligated to settle a debt for less than the value unless the person owing the money has the debt partially (or fully) discharged thru bankruptcy proceedings. All a settlement company does is try to negotiate for you and charge a fee for processing payments.

You are not obligated to voluntarily place a lien on your home to satisfy an unsecured debt, however, the creditor can obtain a judgment and register the lien.