Legal Question in Bankruptcy in Washington

Credit Union has lein on my house,what should I do???

X took out $10,000 on account I thought was closed. Credit Union has put lein on home. now up to 14,000 with interest and attorney fees. Have a lot of equity on house. Would like to sell but they want deed and/ or money. Not willing to negotiate at all. I had no knowledge of this until summer. If I go to bankrupcy they will take house? They are saying they will take house, and garnish wages. They want 1,000 a month. Should I go to bankrupcy or not? Need answer NOW!


Asked on 2/21/00, 11:12 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Credit Union has lein on my house,what should I do???

Credit union cannot get a lien unless (a) they have a judgment or (b) you gave them a lien. Apparently X had your permission to use the account, therefore you are responsible. You should pay the credit union and get reimbursement from X. This appears to be a problem between you and X, not between you and the Credit Union.

If you take out bankruptcy you will probably lose the house, since the court has power to force the sale of the house to pay debts. If the lien is valid, the credit union could probably force the sale of the house regardless of your bankruptcy, since they are a secured lender.

Better go find X and make X pay.

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Answered on 2/24/00, 4:22 pm


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