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Can a credit card company take you to court and come after 30000 in equity in a second home if you quit paying your credit card bill on a non-secured credit account?
Wiki User
∙ 17y ago
Original creditors sell defaulted accounts to third party collectors who attempt to collect the debt and any fees that are applicable. If settlement cannot be reached with the debtor, the collector may refer the account to a collections attorney. The attorney must be licensed in the state where the debtor lives before a lawsuit can be filed. If the lawsuit is won, a writ of judgment is granted. The judgment can be executed in the form of wage garnishment, bank account levy, liquidation of nonexempt property or lien(s) against real property. State laws govern what property is exempt and what can be seized for repayment of debt. In theory a creditor can use the judgment writ to initiate the forced sale of a home. Most primary residences can be protected from forced sale by the state or federal homestead exemption. Liens against property are usually granted, although there are a few exceptions. Other property such as a summer home or rental property cannot be protected by a homestead exemption and therefore could be subject to seizure and forced sale by a judgment creditor
Wiki User
∙ 17y ago
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How does one get rid of a bad line of credit using home equity?
A home equity line of credit is kind of like borrowing from a credit card company only instead it is borrowing from the available equity from your home. Home equity helps consolidate higher-interest rate debt on other loans.
What happens when paying off an equity line of credit?
Nothing happens when you pay of an equity line of credit. The equity that you used for your line of credit is now safe.
Where could one find information on obtaining a home equity loan for people with bad credit?
An equity calculator could be used to see just how bad the credit is and whether or not you would be denied by most mainstream lenders. Additionally, a credit score company, such as Experian can be used to find your overall credit score. You can seek advice from such companies as Zillow after finding your exact credit / equity scores.
What is equity line of credit?
An equity line of credit is issued based on the amount of equity you have in your home. If you have a $100,000 house and owe $75,000 then you would have $25,000 in equity.
Where can one learn more on bad credit for home equity?
There are many ways to learn more of home equity even if you have bad credit by speaking to your local Credit Agency or even your bank however online you can research it from a company such as many companies that specialize in this area of finance.
Why equity account have a credit balance?
Because equity is an income - therefore it is a credit, not a debit.
Does the owners capital account normally has a debit or credit balance?
Credit because it is an equity account
Is a liability account a debit or a credit?
Remember the basic accounting equations Assets = Liabilities + Owners Equity (Stockholders Equity) Assets increase with a debit Liabilities as well as Equity increase with a credit Liabilities have a credit balance (meaning you must credit the account to "increase" it and debit the account to "decrease" it) this makes liabilities a credit.
Accounting equation and rules of debit and credit?
Accounting equation: Owner's Equity=Total Equity + Revenue - Expense - Equity of creditors Rules of Debit and Credit: Personal account: Debit the receiver. Credit the giver. Real account: Debit what comes in. Credit what goes out. Nominal account: Debit all expenses and loses. Credit all income and gains.
Why capital and equity account have a credit balance?
Because they are both income. Capital and equity are sums of money deposited into an account. They are not withdrawals.
Does owners equity account balances in the credit side?
Yes. Owner's Equity is a credit and typically displays on the right side of a balance sheet.
What is the difference between debit account and credit account?
There are two main differences that stand out between a Debit Account and a Credit Account, those are;A Debit Account always maintains a Debit Balance, meaning the account increases with a Debit to that account and decreases with a Credit to that account. These are generally Asset Accounts.A Credit Account is just the opposite, A Credit Account maintains a Credit Balance, meaning that the account increases with a Credit and decreases with a Debit, these accounts are usually used for Liabilities and Owners Equity (Stockholders Equity).
Do revenues have a credit or debit balances?
Revenue is an Owners Equity account therefore has a Credit Balance:
Is an accounts receivable account in accounting a debit or a credit balance account?
It's on the Debit side. A current asset. A = Assets --------DEBIT L = Liabilities -----------------------------CREDIT O = Owner's equity --------------------------CREDIT R = Revenue ---------------------------CREDIT E = expenses --------DEBIT All expenditures in different heads of accounts are debit and all income are credit. for an example, you deposite a certain amount to your correspondence bank. To your company's account register bank account of that certain amount will be debit & your company's account will be credit of that said amount. Credit decreases the normal balance of Office Supplies account.
Is capital a debit or credit to an owners equity?
Capital is a Credit Balance account. To increase capital and therefore increase OE, you will Credit the account. Not DEBIT. You Debit Cash, Credit Capital.
Definition of contra equity?
Contra Equity refers to an equity account with a normal debit balance, where as other standard equity accounts have normal credit balances. Expense accounts are contra equity accounts because they are used to find totals for a debit of the owner's equity account.
Is drawings account is a contra account?
Drawings account is a contra account because it reduces the owner's equity account's normal balance, a credit balance.
