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Can a credit card company or their collection agencies put a lien against your property which can then be paid on or do they automatically take you to court to take the property?
Wiki User
∙ 18y ago
Before a creditor can place a lien against real property, garnish wages or bank accounts or take any action against a debtor due process must be followed. This means the creditor/collector must file a lawsuit in the appropriate court in the state where the debtor resides. If the plaintiff/creditor wins the suit a judgment will be granted, a judgment can then be executed in whatever way is allowed under the laws of the state. In some states a forced sale of property is not allowed, in those states that do allow the action the homestead exemption will usually protect the primary residence. It is very rare that a judge in any state will allow the sale of a home to pay creditor debts. Some collection law firms such as Mann-Bracken are licensed for arbitration, this means some of the steps in a lawsuit can be by-passed in some situations. Nevertheless, the basic premise still applies, the debtor must be notified of a judgment and given the opportunity to claim personal and real property exemptions that are allowed under the laws of the state. When being sued for debt or for any reason the best option is to obtain legal representation or at the very least legal advice. Most attorneys offer free or minimal fee consultations, and referrals can be obtained from the state bar association or the American Bar Association, http://www.abanet.org
Wiki User
∙ 18y ago
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Can a collection agency place a lien on a home if the mortgage and the deed aren't titled to the person owing the debt?
No. Collection agencies (or any other agency/organization that lends money) cannot place liens on property that is not owned by the debtor. If they could, then what would stop them from placing liens on just anyone's property? In order for them to place a lien on a property, the person must be on title. Of course, there might always be some lawyer out there who might beg to differ and try to take it to court...but then again...if they're willing to take the debtor to court, they can just have a judgment placed against them by the courts.
Can collection agencies take money from a personal bank account?
Yes, if a collection agency files a lawsuit and is awarded a judgment against the debtor. In the majority of U.S. states a judgment can be executed against bank accounts even those held jointly. The exception would be a marital account held in Tenancy By The Entirety (TBE) when only one spouse is the judgment debtor.
Do collection agencies pay people up front money owed to them from a judgment against a party and try to collect it for that party?
Sometime, and in some states, collection agencies may purchase debts from lenders. In these cases, they buy the debt for pennies on the dollar, and work very hard at recovering the balance. This is actually a difficult and dangerous way to do it. As long as the debt remains with the original lender, the options are more open. In most cases, collection agencies contract to collect the debt for the loan originator, the lender. The industry standard is payment of 33% of the recovered amount, or 50-75% on accounts that require the work of a skip tracer or legal action.
If a collection agency refuses to settle medical debt and you can't pay what is the worst they can do?
The collection agency can take you to court and garnish your wages. You should attempt to contact the original creditor and make negotiation with them if possible. If this is not possible, attempt to set up a reasonable payment plan with the collection agency. Having wages garnished sets back your life until the debt is paid off. * Collection agencies have no legal authority. If they are a third party collector that has purchased the account they can refer the account to an attorney who can file a lawsuit in the appropriate court in the debtor's state of residency. If they are working for the original creditor the original creditor must be the one to implement a lawsuit. If the plaintiff wins (they always do) a judgment will be entered against the debtor. Judgments can be executed according to the laws of the state where they are issued. Generally a judgment can be used as a wage garnishment or bank account levy or seizure and sale of non exempt property or a lien against real property. In most states it is possible to execute judgments against jointly owned property even that which is considered marital. Judgments are granted from 5-20 years and most are renewable and can be executed at any time the judgment creditor so chooses and will continue to incur interest until they are paid or settled.
How do you find out who holds the mortgage on a house?
Unless you are one of the people or agencies allowed to know that you can't. If you are a person or agency that is allowed to know that you know how to find out. If you have a legal claim against the property or owner you r lawyer will be able to access that information.
What do credit card companies and collection agencies do with an account when the debtor dies?
They file a claim against the estate. They try to get the executor to pay them before they pay others. The company may try to file a lien against any real property in the estate.
How do you report someone who owes you money to the credit reporting agencies?
If you are not a company that reports unpaid debts to the credit bureau's, you can turn the debt over to a collection agency who does report. The other way is to obtain a judgment against them and it will automatically be reported by the courts.
How can you stop collection agencies from placing liens against real property?
Unless the debt is proved to be invalid there are not options to avoid a property lien once the creditor has obtained a judgment if that is how the creditor chooses to enforce the judgment writ. The one exception might be property held as Tenancy By The Entirety by a married couple. Please be advised that a Mechanic's Lien for repairs and/or improvement on the property can be filed without the due process of a lawsuit.
Can collection agencys put a lien on property for unseccured debt?
Yes, collection agencies can do this. However, first they need to sue the borrowers and obtain a judgment from the court against the general assets of the defendants. Usually, a judgment will become a lien on any real estate property the borrowers own. If the collection agency does not go to court to sue for a judgment, however, it can not place a lien on a home. And not all states or counties may allow judgments to be attached as liens, although many do allow this process.
Can an unpaid balance on auto insurance effect your credit?
Unpaid balances owed to insurance companies will be sent to collection agencies and will count against your credit.
What are your rights against bill collector callers who do not identify themselves hang up and threaten to sue?
Collection agencies are governed by federal and state laws. Debtors are given protection under the Federal FDCPA. A collection agency cannot "threaten" you with anything. They can inform you that your account may be referred to a collection attorney and legal action may be initated. Please familarize yourself with the laws pertaining to collection agencies. Be advised, that some of the laws do not apply to the original creditor.
Can a collection agency place a lien on a home if the mortgage and the deed aren't titled to the person owing the debt?
No. Collection agencies (or any other agency/organization that lends money) cannot place liens on property that is not owned by the debtor. If they could, then what would stop them from placing liens on just anyone's property? In order for them to place a lien on a property, the person must be on title. Of course, there might always be some lawyer out there who might beg to differ and try to take it to court...but then again...if they're willing to take the debtor to court, they can just have a judgment placed against them by the courts.
Am i responsible for my spouse's credit card debt after they die in the state of Ohio?
Only in certain instances. If your name on the credit card debt? For instance, is it a joint account? If so, you are liable for it. If not, you are not legally liable for it. Some sneaky collection agencies will try to tell you that you are liable when you are not. This is illegal. Learn your rights against collection agencies by reading up on the FDCPA.
Does a lien holder automatically get paid from an inheritance?
It depends on what the lien is against. If it is against the estate, it has to be resolved before distribution. If there is a lien against your property, your inheritance does not have to be used to pay it off, however, it could be claimed through a court order.
Can a collection agency freeze a bank account in Pennsylvania?
Collection agencies do not and cannot freeze accounts in any state. Only the courts can do this. However, if a lender has a valid judgment against you for a bad debt, any collection agency they hire to recover it can serve your bank with an order of garnishee and attach the assets in the accounts you have there.
Can a collection agency claiming to be a law firm put a lien against your rent security deposit?
There are collection attorneys and they can place liens against real property, such as a house. In regards to placing a lien against a security deposit, that's ridiculous. No real collections attorney or one of the firms reps. would make such a claim.
Is a judgment against the person or property?
A judgment can be against either the person or their property. A personal judgment is against the individual's assets or income, while a lien on property is against the person's property.
