Legal Question in Credit and Debt Law in Michigan
discover card unsecure loan how can it put lien on someone house
discover card put a lien on my friend house- what does that mean- can they take the house away if she is a single parent with a child and is it to late to try to settle with out involving the house- the debt was for 10,000- but now with interst penatility 14,000.00 i thought credit cards
were unsecure loans. help what to do?
3 Answers from Attorneys
Re: discover card unsecure loan how can it put lien on someone house
An unsecured creditor, such as Discover Card in this scenario, needs a valid court judgment in order to place a lien on the house. Bankruptcy would be the most drastic method to attempt to avoid all or part of the debt, but bankruptcy has its own set of consequences. Some type of negotiated settlement or payment arrangement might be possible. Please call with any questions. www.lawgreg.com.
Re: discover card unsecure loan how can it put lien on someone house
Credit card debt IS unsecured UNLESS or UNTIL there is a judgment entered, at which point a judgment lien can then be placed against the property. As for her status as a single mother, its sympathetic but not really important as far as the law is concerned. However, there may be other ways to protect this asset. You should contact a bankruptcy attorney or attorney who deals with credit issues immediately.
Re: discover card unsecure loan how can it put lien on someone house
The lein means that when the house is transferred, the credit card company will get paid. if your friend wants to get rid of some or all of the debt, she can still try to negotiate payments and/or file bankruptcy.