Can a collection agency make you sale your home in order to pay off a credit card debt?
2 Answers from Attorneys
Under Tennessee law, you have a $4,500.00 exemption in your home or a $7,500.00 exemption if you are married. The collection company is not going to suit you but they will eventually turn over the account to a lawyer who will file suit. A judgment against you would place your home in jeopardy if the judgment exceeds the exemption limits noted above. A Chapter 13 bankruptcy would allow you to pay off your credit card debts and keep your home.
No, But It Depends
In general, a creditor would need some legal methods to be able to obligate you to sale your home to pay a debt. A creditor cannot just tell you, nor can he/she just make you sell your home if there is no power to do so legally. If the collection agency is telling you that you have to, or that it can sell your home to pay for the credit card debt, without anything more to show, then it is violating the laws. You DID NOT provide enough information for me to assess your situation. If you are interested, you need to contact an attorney to assess your case.