Refusing to pay credit card debt can open you up to consequences like wage garnishment and credit score damage. In some cases, it could even result in a lien on your property. When this happens, you must repay the debt to have the lien removed. Otherwise, you will have to pay the creditor before you sell the property.
Credit Card Debt Collections
Although it is possible for credit card companies to file a lien on your property, it will definitely not be the first step in the process. When you miss your payment, the credit card company will contact you. After several missed payments and no response from you, the credit card company will charge the debt off and turn the account over to its internal collections department. The collections department will call you and send letters to collect.
Getting a Judgment
If the collections department is unsuccessful in collecting the credit card debt from you, the process then may move to civil court. The credit card company files a lawsuit against you. You will then be asked to appear in court. At the hearing, the credit card company will provide proof of the debt and the court will usually issue a judgment against you. If you do not show up to court, the judge will issue a default judgment against you.
Using the Judgment
Once the credit card company has a judgment against you, it can use that judgment in several ways to try to collect the debt from you. One of the ways is to file a lien against you. However, credit card companies do not always use this option. In many cases, the company will set up a payment plan with you. In other situations, it may pursue a wage garnishment against you.
Property Lien
If the credit card company chooses to put a lien on your house, it means that you will have to pay the debt if you want to sell the house. To get the lien removed, you also have to pay the debt. While some state laws do make it possible to force a foreclosure after a certain amount of time, this credit card companies rarely pursue this.
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