i have about 10,000.00 in debt but have not pated this bill. i can only afford to pay my morgage right now will they make me sale my house to pay this bill?
Could i lose my house if i didn%26#039;t pay my credit card bills. but haven%26#039;t claimed bankruptcy?
Credit Card debt is unsecured debt, meaning you have given no collateral to repossess if you do not pay them. There is nothing that a credit card company has the right to come after.
However, your failure to pay the credit card is a breach of the contract you have with them. They can sue for the balance, interest, and reasonable attorney%26#039;s fees. If you do not answer the complaint against you, they win in court. They will have the ability to pursue any balances you have in the bank, and attach liens against any real property that you own.
I don%26#039;t know what part of the country your in, or what type of equity you have in your home, but I would consider refinance or home equity loan to pay off the credit card.
Another option is to contact the credit cards and offer a settlement. Depending on how past due your balances are, they may take as little as 30% of what you owe. The actual bank that issued you the credit won%26#039;t hold the debt that long. They%26#039;ll sell it to a collection agency at a discount. After 90-120 days, that collection agency sells it at a discount to another, etc. etc.
Hope that helps. Oh, one more piece of advice. If you think you can hide from the bank or agencies, you can%26#039;t. It make take some time, but they will find an account of yours and pull all the money out of it without you knowing. Your home- it%26#039;s already public record.
Could i lose my house if i didn%26#039;t pay my credit card bills. but haven%26#039;t claimed bankruptcy?
I%26#039;m not sure,but I guess so.Bill collecters can repossess just about anything except your wedding ring.
Could i lose my house if i didn%26#039;t pay my credit card bills. but haven%26#039;t claimed bankruptcy?
No, they can%26#039;t force you to sell your home to satisfy this debt. They can however place a lien on your home for the amount of the debt. When you go to sell your home this lien will have to be satisfied before you can sell it.
Could i lose my house if i didn%26#039;t pay my credit card bills. but haven%26#039;t claimed bankruptcy?
No, not in most cases. I%26#039;ve been through this myself. The worst that will probably happen is a judgement against you, and possibly a lien being put on your home. If a lien is placed on your home, you would have to pay back the debt in full either before, or upon selling your home. Yes, a lien is a bad thing to have on the deed of your house; you don%26#039;t want one! In my state, liens last for 10 years before they expire, then they can be renewed. But the creditor can%26#039;t make you sell your house, mainly because the mortgage company owns the debt on your house, and if it went up for auction, it might not even sell for enough money to pay both the remainder of your mortgage AND the outstanding credit balance, so both the mortgage company AND the creditor would lose out.
Could i lose my house if i didn%26#039;t pay my credit card bills. but haven%26#039;t claimed bankruptcy?
If you are going to file bankruptcy: Push for Chapter 7.
Find a Lawyer who can guarantee you Chapter 7 treatment.
Chapter 13 has all the downside of Chapter 7 with NONE of the benefits a Fresh Start.
In Chapter 13 you will be a SLAVE to your creditors for years.
If you can%26#039;t get Chapter 7 treatment find another way out this situation!
With a Good Lawyer most people who truly are in trouble can get Chapter 7.
Oh and you can thank your Congressmen and Senators for being in Bed with the Banks and Credit Card Companies for this situation.
Credit Card Companies have NOW Become LEGALIZED LOAN SHARKS!
Everyone should write your Congressmen and Senators to STOP THIS ABUSE and END this LEGALIZED LOAN SHARK Game! You will all be affected by this at some point over your lifetime.
I have seen several people go through this game and I have experienced some of this myself. Now articles are being written on it.
Your Credit Card Interest Rates should never Increase because you were 1 day late or ever a couple of hours late (In my case/ I pay through the internet) on your payment and this happens if you do it Only ONE TIME. Yet this is what the LEGALIZED LOAN SHARKS are doing!
They are even changing the time period between the day you receive your bill to the day its due. They are shortening it by 1 day per billing cycle. They are hoping that you don%26#039;t realize the change and that you will be late on a payment so they can Raise you up to the default interest rates and Steal your Money. This is what the Legalized LOAN SHARKS are doing!
All with the blessing of the U.S. Congress!
Read This:
There%26#039;s a new, completely legal game they%26#039;re playing, and it can literally wipe you out financially if you%26#039;re not careful.
The Universal Default Clause
If you own a credit card, you know by now that if you%26#039;re late with a payment the credit card company will charge you a late fee in addition to raising your interest rate. But did you know that they can raise your interest rate if you%26#039;ve made a late payment on any of your other cards, including those issued by other companies?
Not only that, but your interest rates can skyrocket to 30 percent or more if you make a late payment on your car loan, mortgage, or even your phone bill!
%26quot;How can that be legal?%26quot; you may ask. The answer is found in the fine print of your credit card agreement, and it%26#039;s called a universal default clause. According to the Institute of Consumer Financial Education, currently almost 40 percent of credit card issuers apply this policy to their customers.
A Late Payment %26#039;Trigger%26#039;
Generally, a universal default clause states that a creditor reserves the right to penalize you with an increased interest rate if you%26#039;re late -- that is, in default -- of a payment to any other creditor. They justify this practice because, in theory, if you pay any of your creditors late, you pose a greater credit risk and are less likely to pay your debt.
Your creditors also have the right to routinely monitor your credit file. So a creditor with a universal default clause will be watching -- and waiting.
Let%26#039;s say your Visa card has a universal default clause. Any late payment -- whether it%26#039;s on your utility bill, home equity loan, or Macy%26#039;s credit card -- acts as a %26quot;default trigger%26quot; allowing the bank that issued the Visa card to double or even triple your interest rate overnight. Your all-important credit score will be hurt as well.
According to a study by the nonprofit advocacy and education group Consumer Action, the top three default triggers that cause your interest rates to spike are a decline in credit score, paying your mortgage late, and paying your car loan late.
Other Triggers to Worry About
Under the universal default clause, your interest rates can be increased for several other reasons, including exceeding your credit limit, bouncing a check, having too much debt, having too much credit, getting a new credit card, applying for a car loan, and applying for a mortgage loan.
How does this affect your financial future? Take a look at the numbers. Let%26#039;s say you%26#039;re an average American household, with $8,000 of credit card debt. Assuming you make no additional purchases on your card, you have a 9 percent interest rate, and you make the minimum monthly payment, it%26#039;ll take you 218 months (18 years) to pay off your debt and you%26#039;ll end up paying $3,334 in interest.
Now let%26#039;s assume that for whatever reason you were late one month with your car payment. This late payment triggers the universal default clause with your credit card issuer, and now your penalty rate gets increased to 24 percent (the average default rate in 2005). It%26#039;ll now take you 679 months (56 years) to pay off your credit card debt, and get this -- you%26#039;ll pay $30,813 in interest. Link to this full story: http://finance.yahoo.com/expert/article/...
This is all true people WAKE UP and FIGHT BACK!
Could i lose my house if i didn%26#039;t pay my credit card bills. but haven%26#039;t claimed bankruptcy?
Not likely. Depends where you live. You probably have homestead exemptions greater than $10,000 but this varies considerably from state to state.
Could i lose my house if i didn%26#039;t pay my credit card bills. but haven%26#039;t claimed bankruptcy?
I think they might be able to put a lean on your house for the amount that you owe them, so if you were ever to sell your house you would have to pay off the lean first. Then you can come and live with me.lol
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