Credit Tips: Can credit card companies put a lien on my house?

Posted On: January 1, 2005

Author: angie75043
Joined: 22 Oct 2004
Posts: 3
Location: Texas
Posted: Fri Oct 22, 2004 9:56 am
Post subject: Lien on Property

Hello. I have a question regarding my mothers credit card debt. She is very ill and is currently in a nursing home and we have filed for medicaid as her money has run out due to the care she has needed. She has an outstanding credit card bill which is a little over $7,000.00 and the creditors are saying there is going to be a lien filed on her house. Can they do this? By the way she lives in the state of Texas. Also if they can do this, what does the lien exactly mean? Thank you!

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Author: NightStar
Forum Moderator
Joined: 07 Nov 2003
Posts: 2313
Location: Illinois
Posted: Fri Oct 22, 2004 2:38 pm

A lien means that the property would not be able to be sold without first paying off the debt. Her income if social security should be exempt from collection efforts, but the house is not safe. She may need to contact an attorney and look into possbility of filing bankruptcy to clear the debt before they move in on the house.

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Author: angie75043
Joined: 22 Oct 2004
Posts: 3
Location: Texas
Posted: Fri Oct 22, 2004 2:48 pm

I was just wondering though if they can do that in the state of Texas. I know all states have different laws about this sort of thing. I have never heard of this happening to anyone over a credit card in this state. Just curious.

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Author: NightStar
Forum Moderator
Joined: 07 Nov 2003
Posts: 2313
Location: Illinois
Posted: Fri Oct 22, 2004 7:03 pm

I am not familiar with Texas laws, but you can seek out assistance from another by the name of Palerider he is a member of artofcredit.com He lives in Texas and studies on law for that state, as well as others at this site.

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Author: angie75043
Joined: 22 Oct 2004
Posts: 3
Location: Texas
Posted: Sat Oct 23, 2004 8:47 am

Hey thanks for the info…..I’ll check it out

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Author: Ira
SENIOR MEMBER (Member for 2 yrs.+)
Joined: 19 May 2003
Posts: 766
Location: NJ
Posted: Sun Oct 24, 2004 8:21 am

This is NOT legal advice, but before any such drastic procedure can be instituted they must obtain a judgement against your mother in court. If you (your mother) has not been notified of any court procedure, or if you determine that they have not instituted any legal procedure for collection, it is probably an empty threat meant to cause FUD (fear, uncertainty, doubt).

Do not let what you cannot do interfere with what you can do.

Ira

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Author: Kamperkatt
Joined: 01 Nov 2004
Posts: 9
Posted: Mon Nov 01, 2004 10:44 pm
Post subject: Texas

They can not lein your house in the state of Texas. Homestead in Texas is exempt against judgement. I am going to bring a Texan here to give you more details……….just found this board.

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Author: catb
Joined: 01 Nov 2004
Posts: 2
Location: texas
Posted: Tue Nov 02, 2004 12:15 am
Post subject: liens in texas

thank you kamperkatt. lol. to the lady who asked about it..this is my understanding of the law. is she a resident in the rest home –full time? expected to go home? that is the key. if not..they can lien it. they also can lien a homesteaded, however..if one lives there full time..they can do nothing with it. one can sell it by getting a waiver for 180 days..and in that time one must buy a new homestead and sign it as such with the money…then the profits cant be touched. i have been threatened by a lien also..i tell em , fine. they cant do much with it. but with her..please pm me or repost what her expectations are to return home and how soon. i would say she needs to get that place out of her name anyways..or look into a trust..use a lawyer, where she sells it but is allowed to live there as long as she can physically stay. my granma had one of those and it worked wonderfully. needs a lawyer tho, to draw it up. if not..put it in someone’s name..as was stated the Ca needs a judgement first and then try to lien it. thats pretty low..to lien some elderly persons home. my guess is they are blowing smoke and i would c and d them. our SOL here is 4 years. all her income is exempt but watch it in case they file suit..and if its in a bank account they can get it –not keep it–but make it a hassle for you to fight to get it back. easier to have all money in anothers name..or in the rest homes accounting. i wish you and her much luck..if she doesnt intend to come home..i would put it in anothers name..or all of her kids jointly. its a fine line with medicaid assets here in texas. and watch signing responsibilty for her things..guardianship , as they can and will come at you for all of it..meds..bills..and all. learned that the hard way too. dont do it. if i can help..just pm or email me..or post to me. hope this helps. and no, she doesnt need to BK anything. just get the trust if she wants to keep living in it..medicaid wont look kindly on her moving a asset tho…i would ask a lawyer..she would qualify for aid in this case, or a kindly medicaid person. should she stay in the rest home..it is no longer a homestead and can be liened ..altho its very rare to happen. reread your questions..a lien means they can take the money if its sold to pay the debt. thats all, they cant come get it out from under her. who exactly are the CAs talking to? they cant disclose this to you or anyone. thats illegal. dont tell them anything.they will lie to ya anyways. . the adult protective services here is very good and will help you..as will social security admin. the CAs can not be talking to you about her accounts. and she is not available. dont answer the phone when its them calling. as was stated..a lien requires a suit.(keep eye out and answer it if one is filed, stating with proof she is very ill).a judgement..and then further motions. in tx it can not be filed in small claims either. but thats on down the road, mostly CAs will lie and threaten as long as they have a live person who will listen and talk. good luck! *this is all my personal opinions and not to be taken as legal*

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Author: Ira
SENIOR MEMBER (Member for 2 yrs.+)
Joined: 19 May 2003
Posts: 766
Location: NJ
Posted: Tue Nov 02, 2004 12:44 am

Be careful! What you’re talking about is putting all of her assets in an irrevocable trust. That means she no longer owns anything; the trust, which is a legal entity, owns everything. Someone or someones is designated as the administrator of the trust. We did this with my Mom some years back when she had Alzeimers. Ok, sounds straight forward, right? However, here’s the kicker. You can’t own everything one day and put it in a trust the next day and expect creditors to sit still. There is a statutory period during which the trust can be attacked. In my Mom’s case it was three years. You can be forced to reverse any large withdrawls of assets within that time period. I’m not sure of the legal terms, but this must be discussed with a lawyer before doing anything rash.

Do not let what you cannot do interfere with what you can do.

Ira

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Author: catb
Joined: 01 Nov 2004
Posts: 2
Location: texas
Posted: Tue Nov 02, 2004 12:58 am
Post subject: and

i said to get a lawyer. no ,, not a trust like that. its a diff one. one where another person owns the property but they can live in it free as long as they want. and i said…watch transferring assets with medicaid also and told the poster to get advice and several places to do it. it was only meant for the property..not all assets. and since its hers..and no one is after it…they have no say in it. in texas anyways. she is only selling her house..if IF she will not come back home to it. anyways..one needs a lawyer..as i said. and she prolly will qualify for legal aid..imho only***smile*

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Author: Kamperkatt
Joined: 01 Nov 2004
Posts: 9
Posted: Tue Nov 02, 2004 12:55 pm

Thanks Cat. This seems like a nice board.

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