When do they put leins on stuff?

[bkrupt]

I'm newly registered but have been lurking for a couple of weeks.

From what I've gathered so far, when CC's sue they go after your wages, right?

My question is can they also put liens on my car or house? Are leins removed with a BK?

[flyinbroke]

Depending on your state, they can garnish wages, put liens on property you own to get their money; this can only happen if they successfully sue and get a judgment from the court. BK cancels this possibility out.

[bkrupt]

Depending on your state, they can garnish wages, put liens on property you own to get their money; this can only happen if they successfully sue and get a judgment from the court. BK cancels this possibility out.

Thanks for the response. I'm in CA.

So in the end, regardless of what the CC's try to do (Garnishment, leins etc) if I file it will all go away? Im strictly referring to cc debt.

Thanks again.

[flyinbroke]

If you haven't been sued, it all goes away. If you have, not really sure but I believe that once BK is filed it disappears as well. I have not been sued or filed yet, so I don't know. BK leaves you legally protected.

And even if it is just CC debt, if they get a judgment they can go after property as well as wages depending on the state you live in.

[AngelinaCatHub]

If you haven't been sued, it all goes away. If you have, not really sure but I believe that once BK is filed it disappears as well. I have not been sued or filed yet, so I don't know. BK leaves you legally protected.

And even if it is just CC debt, if they get a judgment they can go after property as well as wages depending on the state you live in.

De way it 'tis, is: When you file you have an automatic stay. It tolls any lawsuit. That is, one to you, or one from you. All things are stopped in their tracks. If your case is dismissed, then the suits can start up without the time limit being imposed such as Statute of Limitation.

If you have been sued and have a Judgment, it (with a bit more trouble) can be vacated. If you have a lien, it can be removed. This is not automatic if filed before your bk.

If you have a Judgment and have not filed, dependent on state, your wages can be garnished, your stuff can be liened, your car can be levied, and your personal possessions can be taken. Hope that answers your question. 'Hub

[treehugger1]

In my state, a judgment over a certain amount automatically creates a lien against all real property. No big deal if you have no real property. If you can't file Bk for a while, then the lien can be stripped in a BK proceeding. This generally costs a bit extra.

Liens against automobiles can be obtained, but I think this is rare here. This might be especially true if your vehicle is still financed and you are upside down. What's the point?

[GoingDown]

If you haven't been sued, it all goes away. If you have, not really sure but I believe that once BK is filed it disappears as well. I have not been sued or filed yet, so I don't know. BK leaves you legally protected.

And even if it is just CC debt, if they get a judgment they can go after property as well as wages depending on the state you live in.

First, it is important to keep in mind that they rarely sue over credit card debt. It does happen, but it is rare. In my case it happened 1 out of 14 times. The odds are against them suing you.

Second, even if they do sue, other that threatening to take my boat (I don't even own a boat, but that's what they said on the phone) and my car, etc. over the phone, the judgment creditor never did anything. They never filed a lien on anything. They never did anything with their judgment at all. And most importantly, they never got a penny from me. And now the Arizona statute of limitations has expired on that judgment so it is worthless.

Third, even if they get a judgment and get a lien, bankruptcy makes the judgment worthless, and the lien is stripped away if it impairs your state's exemptions. For example in Arizona, there is a homestead exemption of $150,000 and so if they had a lien for $30,000 on your home, and your home has 148,000 in equity then their lien gets completely stripped away. Same thing for your car ($5000 exemption in equity in Arizona).

Fourth, Wage garnishment and checking account garnishment (or seizure) comes to an end with bankruptcy. The underlying debt for the judgment gets discharged, and with a simple court procedure the judgment gets vacated, and they can no longer garnish anything of yours after bankruptcy.

So stop worrying so much about lawsuits. That's what they want you to do-- worry and then pay them. They simply can't sue everyone, but they don't want you to know that.