Legal Question in Credit and Debt Law in New York

Credit Card Liens
We have recently been advised of collection efforts by several credit card companies. One of these collection companies mentioned placing a lien against our house to recover the money. What does this mean and does this mean they can sell our house from under us even though the bank technically still owns it? We are getting nervous that all our efforts to resolve this have been worthless and are afraid we will lose everything.

Asked on 7/05/01, 11:36 am

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Re: Credit Card Liens

A lien may arise if the Credit Card company

successfully sues and recovers a judgment.

Hopefully, before this is done you will hire

an attorney

The judgment lien will be subordinate to the

mortgage. The Credit Card Company could

attempt to force a sale of the house, but

the proceeds of such foreclosure sale would

go first to the mortgage and then to the

judgment. Should the Judgment lien affix

and you attempt to sell the property, the

judgment creditor gets the money at time

of closing

Do not forget the idea of a Chapter 13

Bankruptcy Reorganization or a credit agency

reorganization

Answered on 7/07/01, 10:18 am

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