Can A Credit Card Company Take Your House?

Written by Banks Editorial Team
3 min. read
Written by Banks Editorial Team
3 min. read

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You’re overwhelmed by credit card debt and are afraid creditors will come after your home to collect what’s owed. Before you go into full-blown panic mode, understand that the chances of this happening are slim to none. However, the creditors may use other aggressive tactics, like wage garnishment, if they get a court judgment against you.

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Overwhelmed by credit card debt and afraid creditors will come after your home? Review your debt relief options. Accredited Debt Relief helps individuals across the U.S. by creating personalized debt relief programs that work.

Secured Debt vs. Unsecured Debt

There are two primary types of debt – secured and unsecured. Secured debt is backed by an asset, referred to as collateral, that the creditor can seize if you fall behind on your payments. But unsecured debt isn’t backed by collateral, so defaulting on your obligations doesn’t give the lender rights to your possessions. 

But how does this relate to credit card companies and their rights to your home if you fall behind on payments? Well, most credit cards are unsecured.

If you happen to experience financial hardship that causes you to miss multiple payments, the credit card issuer could attempt to transition from an unsecured creditor to a secured creditor that has rights to your property to recoup their losses. 

Note: There are some unsecured credit cards on the market that require a deposit equivalent to the credit line to get approved.

What Can A Credit Card Company Do?

Creditor Would Have To File A Lawsuit

When you miss your first payment, the phone calls and letters in the mail from the creditor will typically start. After 30 days, most creditors report the delinquency to the three credit bureaus – Experian, TransUnion and Equifax. Once the account reaches 120 days past due, the creditor may write the balance off as a bad debt expense to remove it from its books. This is referred to as a charge-off and could have severe consequences for your credit score and financial health. 

Not only will the balance typically be sold off to a collection agency or law firm for pennies on the dollar, but your credit score will take a hit. You could also experience an uptick in the volume of collection calls and letters. At some point, the debt collector could threaten you with a lawsuit, especially if you send a cease and desist letter requesting that all communication be halted. 

If they move forward with a lawsuit and you fail to respond, the debt collector could receive a default judgment against you. This means the court agrees you owe the debt, and they have a right to seize your assets to collect on the balance. But can your home be at risk for seizure? It depends on the exemption laws in your respective state. 

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Get Rid Of Credit Card Debt

Overwhelmed by credit card debt and afraid creditors will come after your home? Review your debt relief options. Accredited Debt Relief helps individuals across the U.S. by creating personalized debt relief programs that work.

Homestead Exemptions

Some states offer protection to consumers that prevent creditors from seizing property. Depending on where you live, the value of your home, car or other personal property could be exempt from seizure by creditors. Consult with a consumer lawyer in your area to learn more about how property and other exemptions work. 

Creditor Would Need To Collect A Judgement  

The reality is a judgment could mean you’ll need to sell off your home to repay creditors what they’re owed. However, the process is lengthy and time-consuming, which may not make it a worthwhile pursuit for creditors. 

Here are some actions creditors may take instead: 

Put a Lien on Your Property

A judgment lien gives creditors the right to collect what they’re owed if you sell or refinance your home. 

Garnish Your Wages

The creditor could garnish your wages, which means they’ll automatically collect funds from your bank account each time you’re paid. However, there are limits on the amount creditors can take, depending on your state. 

Levy your Bank Account

Some creditors may levy your bank account upon receiving a judgment against you. Consequently, the bank will freeze your account and send funds to the creditor until the outstanding balance is paid in full. 

How To Get Debt Relief

If you’re behind on credit card payments and worry debt collectors will come after your home, consider a debt relief program to lend a helping hand. 

Accredited Debt Relief is a great option to get out of credit card debt and not risk losing your property. Its credit card debt consolidation program makes it easy to resolve your debts, and you could be debt-free in just 12 to 48 months. Even better, its team of debt resolution specialists works directly with your creditors to reach settlement offers that cut your balances by as much as 50 percent. 

Below is an overview of how the program works

  • If you have $10,000 or more in unsecured credit card debt, get a free consultation by calling 800-497-1965 or completing the online form.
  • Decide on the amount of money you’ll deposit to a dedicated savings account each month. The funds will eventually be used to pay creditors as settlements are reached.
  • Once you have a certain amount saved up, the debt resolution negotiators will begin reaching out to your creditors to negotiate settlement offers on your behalf. 
  • You’ll approve each settlement offer if it’s acceptable to you, and the funds used in your dedicated savings account will be used to resolve the balance.
  • The process will continue until all unsecured credit card debts in the program go through negotiations. 

It’s that simple. So, consider reaching out today by submitting an online form to take the first step towards protecting your assets and getting the relief you need and deserve. 

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