Can they take my house?

[sagasmommy]

What is the name of your state? WV. I had to apply for Social Security Disability Insurance (SSDI) in January of 2006. Because of my illness, I had to move out of my home and in with my boyfriend. I have renters in my home now. They pay only $100 over amount of my house payment. The extra money pays for my 6 medications. I have not been able to pay on my credit cards since January 2006. My credit card debt is $2,900. I am still awaiting a decision on my disability, so of course, I'm not working. They call me nearly every day for payment, and I keep telling them the same story. I end up in tears every day. I ALWAYS paid my bills before this. My credit is now ruined. If I lose my house, I will never be able to buy another one EVER. Can the credit card companies take my house?What is the name of your state?

 

[TigerD]

The short answer is yes. If they get a judgment, they can force the sale of your house. There are many steps between now and then, however.

Sending a silly letters are a sure way to speed up the process and get you sued faster. The best thing is to talk to them and explain the situation. If you can make a payment, make it. Sending in a payment every month will help slow the process.


DC

 

[NEOhioChick]

No, they can not, but only in the following situation: They can put a lien on the house, but can not force you to sell a house that is your primary residence. You need to move back into the house as soon as possible so that it is your primary residence.

 

[SF439]

First be aware that 95% of SSI claims are denied and most have to appeal. This is to push it to the 12 month rule so people who can work will return to work and they don't have to pay. If it's over, then they usually grant the application.

Now, for the CC, you have rights under the Fair Credit & Collection Act not to receive calls but correspondence via regular mail. When they call, tell them firmly that you don't want them calling your house anymore. If they are rude or anything like that or continue to harrass you, file a complaint with the FTC.

Make payments, even if it's $5 or you can go to a consumer credit counseling service for assistance.

If they sue, they can get a judgement but you can protect your primary residence. SSI payments are judgement proof, they can't attach those funds for repayment.

Is it a secured or unsecured debt? If it's secured I would do a voluntary repossession and just return the stuff (TV, etc)
If MC, Visa, etc then I wouldn't worry too much about it. It's unlikely they will take it to court but if they do, even then I wouldn't worry about it too much. You can protect most of your assets. Home, primary car, etc. If things get really bad you can either file Chapter 7 or 13 bankruptcy.

But in the meantime, tell them to stop calling, you have a right not to be harrassed or for them to call.

 

[Ladynred]

Fair Credit & Collection Act

Must be a new Act, because I've NEVER HEARD of that one! Gee.. that's because there is no such law !

Make payments, even if it's $5 or you can go to a consumer credit counseling service for assistance.

That kind of payment would be pointless, and credit counseling, for the most part, is just another collection vehicle for the credit card companies who just happen to fund and control CCCS !

If it's secured I would do a voluntary repossession and just return the stuff (TV, etc)

You are SO far off the mark it's not funny. Voluntary repo is still a repo and they don't want that stuff back anyway !

It's unlikely they will take it to court

Where are you getting this information ??? That's simply NOT TRUE, creditors are getting more and more aggressive in suing for even small amounts !

If things get really bad you can either file Chapter 7 or 13 bankruptcy.

Again, you don't KNOW that, the OP may not be able to file, or it may not be a truly viable option. What are you, a shill for a bankruptcy attorney ??

But in the meantime, tell them to stop calling, you have a right not to be harrassed or for them to call.

Yes, you have rights, but if you cut off their ONLY means of contacting you, you are ASKING to be sued !!

 

[Debt Guy]

Now, for the CC, you have rights under the Fair Credit & Collection Act not to receive calls but correspondence via regular mail.

No. The FDCPA provides for a "cease communication" which means no contact of any sort. There is no such thing as a limited cease & desist.

It is a common myth that consumers have the right to instruct a creditor "no phone calls and mail only". There is no case law to support such a position.

When a creditor receives a limited C&D they have 3 choices:

1. Ignore it. They well know the law does not provide for such a thing.
2. Follow it. Which is extremely unlikely. These organizations are simply not set up to do business solely by mail and they abhor changes in their standard operating procedures.
3. Accept it as a full cease & desist. That means they have no alternatives except to give up or to file a lawsuit.

Many debt buyers follow #3. That increases the risk of litigation. If the OP is litigation adverse, they would be wise to think several times before sending a limited C&D.

For naysayers -- whatever the CA/DB does, the only recourse of the consumer is to sue. Imagine this scenario.

Consumer: Your honor, they called me after I told them I did not want any phone calls.

Judge: So, you sent a cease & desist. Let me see it. (Judge reads). OK, this says mail only and no calls. Where in the FDCPA does it say you can do that.

Consumer: Well, your honor, the FDCPA gives me the right to restrict calls that are inconvenient.

Judge: So, you are saying that any and all calls are inconvenient?

Consumer: Yes.

Judge: Do you allow friends and family to call you?

Consumer: Yes.

Judge: You mean calls from friends and family are not inconvenient?

Consumer: Uh. I guess not.

Judge: So, it is not inconvenient for family to call but it is inconvenient for your creditors to call. How can that be?

Consumer: Uh. Well, uh. I just don't want to talk to my creditors.

Judge: Well, if you don't want to talk to them, why don't you just hang up when they call?

Consumer: Uh. I donna know.

Judge. Well, your position is just not reasonable. I can't see anywhere in the Act where you can decide what forms of communication you will allow and which ones you won't allow.



I know the example is silly -- but it illustrates the practical problem with suing to enforce something that does not exist in law.