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Question
it looks like we are going to end up in arbitration over a credit card debt. We live in Michigan and times are hard. They have threatened with a lien on our home. What exactly is that? We know we owe this, and would like to negatiate payments, but at this time the payments would be small (100.00 per month). Where do we stand, what should we do?
The creditor may only place a lien once they obtain a judgment through the courts. They must follow due process and allow you time to resolve the issue. Collectors use this threat routinely even though they may have no intention of going to the expense of filing legal action.
A judgment lien is a public record indicating you owe money so that if you sell the property or refinance your mortgage the lien would have to be paid or renegotiated. It does not mean they can take your home although under certain conditions they may attempt to do just that. Many times it is to scare you into paying the debt.
How much is the credit card balance? My suggestion is to put your budget to paper and determine how much you can really afford then write them a letter offering a specific payment amount each month. If you send a payment with the proposal they either have to accept it or send it back. If you keep your plan and keep making payments no matter what they will have to explain to a judge why they didn't work with you when you were making an effort to pay.
Don't let bill collectors threaten or abuse you. Stand tough and assert yourself with them and they will bend.
Let me know how things work out.
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| Rating(1-10) | Knowledgeability = 10 | Clarity of Response = 10 | Politeness = 10 |
| Comment | thank you for the information, it is so easy to be intimidated when you are feeling low about the situation as it is. | ||
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Answers by Expert:
Michael Brotherton
Expertise
Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. Mike is well versed in Loss Mitigation practices and the legal collection process. He has helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. FinancialEmergency.com is a consumer web site which actively promotes Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).
Experience
Over 40 years combined experience negotiating disputes and resolving financial issues related to consumer debt, corporate issues and mortgage modifications.
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