In Virginia can a home be seized by creditors to pay off credit card debt.?
There are provisions in the state code for filing a detinue form for the sale of property to settle debt after receiving a judgment and posting a lien. Is this legal to be used by credit card companies? I get lots of conflicting info off of the web.
Posted December 12th, 2009 in Debt Settlement. Tagged: credit card companies, judgment, provisions, state code.
A filing of Warrant in Detinue is used in small claims court to sell anything that has a value equal to the judgment or property secured by the debt.
The maximum allowed is for judgments up to $5000.
I doubt a court would let them sell your home as it no doubt exceeds the judgment, also, unless you have paid off the mortgage, you still have a lien holder who comes first (the mortgage company).
There are ways to fight back and you can read more in the link posed in the source area.
Hope this answer is of help to you
December 12th, 2009 at 11:48 amLEGAL DISCLAIMER: The answer provided here is intended for informational purposes only. It is not intended nor presumed to be legal counsel or professional legal advice
I’m not familiar with Virginia state laws maybe it’s a exception but usually they could file a lien on the property after a judgment is granted. They probably won’t do it if you have a mortgage, if they do they will have to wait for you to pay off the mortgage and sell the house to get any money.
And I don’t think the can force you to sell unless the loan was secured with the property as collateral. If that was the case they would foreclose.
Credit cards companies and banks rather use wage garnishment or bank levies to enforce judgments on consumer debt
December 12th, 2009 at 11:48 amBy definition, credit card debts are UNSECURED debts. That is, there is no collateral (physical property) that is used to secure the debt.
The only thing a CC company can do is take you to court and get a judgment against your wages.
With a mortgage, your home can be seized (foreclosed upon) to pay off the debt.
With a car, your car can be seized (repossessed) to satisfy the debt.
With a credit card, there is nothing to seize.
December 12th, 2009 at 11:48 amThey may be able to win a judgement and place a lien against the property that must be paid at closing. I have seen that done countless times along with dozens of other debts. The closing title company is kept very busy if the seller has lots of unpaid loans.
December 12th, 2009 at 11:48 am