When you sign a credit card agreement, you give the credit card companies the right to pursue legal action against you in the event that you do not pay your bill. If you owe money to a credit card company, your real property could be at a risk of having a lien placed on it.
Credit Card Debt Judgment
When you do not pay your credit card bill for a certain amount of time, the credit card company will file a civil lawsuit against you. The credit card company will appear in court and you will have the option of appearing in court. If you signed the credit card agreement and racked up the charges, the case is pretty cut and dry. Unless you prove that the debt is not yours, the creditor will get a judgment against you from the court.
Lien on Property
After the creditor has a judgment against you, it can use that judgment to pursue further action. The court typically allows a certain amount of time after the judgment is rendered to allow you to pay it. For example, you may get 30 days to pay the judgment. After that, the credit card company can use that judgment to place a lien on your property. Liens can be placed on your home or other property, such as a vehicle or business.
Forcing the Sale
After a lien is placed on your property, it does not necessarily mean that you are at risk of losing it. According to Bills.com, losing a home to credit card debt is extremely rare. In most cases, the credit card company does not even have the right to force the sale of the home in this situation. With a lien on your property, the credit card company will collect its debt when you sell the property.
Removing the Lien
After you have a lien placed on your property from credit card debt, you do not simply have to live with the lien. To get the lien removed, you simply need to pay the debt to the credit card company. In some cases, the credit card company may remove the lien if you agree to a payment plan and start making payments. Other times, the credit card company will not remove the lien until you have paid the balance in full.
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