Summary
If a creditor wins a lawsuit for non-payment, they can place a lien on your property, even if your income is non-garnishable. In Missouri, filing for bankruptcy can offer relief through Chapter 7 or Chapter 13, potentially discharging the debt and removing the lien. Exempt properties include up to $15,000 in home equity and fully exempt retirement accounts. If a lien is placed on your house, it wont affect you unless you sell or refinance. Options to manage or remove the lien include negotiation, refinancing, or bankruptcy. Consider consulting a local attorney for personalized advice.Full Conversation
If a person is being sued for non-payment on a credit card for balance due for over $*,*., and all income sources are non-garnishable sources, and defendant is not able to pay the amount owed the card company, what happens?
Hi Lesa! Generally, if a creditor wins a lawsuit for non-payment, they can get a judgment against you. If your income is from non-garnishable sources (like Social Security), they can't garnish those funds. However, they might still place a lien on your property or bank account.
Do you have any property or assets that you're concerned about?
Yes, house with a mortgage
Hi Lesa. The creditor can potentially place a lien on your house despite the mortgage. This means they have a legal claim to the property, which might complicate matters if you try to sell or refinance it.
- The lien would be secondary to the mortgage.
- You wouldn't be forced to sell the house.
- The lien would need to be satisfied if you sell the house.
Do you have other assets or are you considering bankruptcy?
So, what if we considered filing bankruptcy? What are the current bankruptcy laws and how would this affect her.
Hi Lesa! Here are some key points about bankruptcy laws in Missouri that might help:
- Chapter * Bankruptcy: Liquidation. Non-exempt assets are sold to pay creditors. You may keep exempt property.
- Chapter * Bankruptcy: Repayment plan. You keep your property and repay debts over *-5 years.
- Automatic Stay: Filing stops most collection actions, including liens and lawsuits.
Would you like more details on the process or exemptions?
Yes. What are exempt properties and more details plz
Hi Lesa! In Missouri, exempt properties in bankruptcy can include:
- Homestead exemption: Up to $*,* of equity in your home
- Motor vehicle: Up to $*,* in equity
- Personal property: Clothing, household goods up to $*,*
- Wages: *% of earned but unpaid wages
- Retirement accounts: Fully exempt
Would you like more details on any specific exemption or the bankruptcy process?
If the credit card company wins the judgment and there are no income sources that are garnishable and they put a lien on the house if I don't plan on selling the house or taking out an equity loan on it, how would that affect me?
Hi Lesa! If the credit card company places a lien on your house and you don't plan on selling or refinancing, it won't immediately affect your daily life. The lien remains until the debt is paid or the house is sold, at which point the lien would need to be satisfied.
Would you like more information on how to manage or potentially remove the lien?
Yes
Hi Lesa! Here are some ways to manage or potentially remove the lien:
- Negotiation: You can try to negotiate with the creditor to settle the debt for less than what is owed.
- Refinancing: If you refinance the mortgage, you may be able to pay off the lien.
- Bankruptcy: Filing for bankruptcy could discharge the debt, potentially removing the lien.
Would you like more details on any of these options?
TRY ME!
Start a new chat