Legal Question in Credit and Debt Law in Michigan

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.