Legal Question in Credit and Debt Law in Texas

homestead

so in texas the creditors owed cannot put a lien on your house but can they go to court and put a judgement against you or your house, what is the difference in judgement or lien, and i have received letters from credit card companies stating they would file a 1099 on my taxes so if they do that whats the point in trying to work with them to pay off the debt by settlement if they wont settle


Asked on 11/28/06, 4:13 pm

1 Answer from Attorneys
TC Langford Langford Law Office

Re: homestead

An unsecured credit card creditor cannot lien your homestead. If they have a judgment, and you have non-exempt property, then they can go after that. The threat to file a 1099, means that if accepted by IRS, is that the forgiven debt is considered income, and you would have to pay taxes on it. sometimes, even if you settle with the creditor, they will report the balance of the debt to IRS.

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Answered on 12/04/06, 1:13 pm


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