Legal Question in Real Estate Law in Kentucky

Re: Forclosures

Most notes and mortgages have what is known as an "acceleration" clause and it usually provides that if a payment becomes due and remains unpaid for a certain number of days, then the person to whom the money is owed can declare the note and mortgage in default and demand immediate payment. If you do not settle with them, then they can file suit and if the Court says that you owe the money, then the property described in the mortgage is sold and the money is used to pay the debt. Garnishment, like all collection procedures can only come AFTER a Court judgment. Bill Collectors will threaten you with the possibility of garnishment but they have to go to Court first. A lot of times, the creditor will try to work something out with you. If you call first, then you are more successful. Ultimately, the creditor can use garnishment, etc to collect the money that is owed. For a lot of people the only choice at the time is to seek bankruptcy protection. Try to call the creditor and see if some arrangement can be worked out. It cannot be any worse than getting collection calls.