Cana creditorseize my house over a $700 credit card debt?
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Cana creditorseize my house over a $700 credit card debt?
I have not filed for my Social Security exemption yet. I just received the sheriff levy notice. I have a bank account for social security funds and insurance home repair money. Can they take my insurance roof repair money if I cash a check in my account? Can they seize my home that has at most $10,000 equity? If I negotiate settlement on this debt, I have a feeling they will try and come after me for my other credit card debt. I have read that they need around $75,000 in equity to take possession of a house but I can’t verify that.
Asked on August 8, 2011 Missouri
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Most states in this country have what is called "Homestead Exemotion" laws that protect property owners from losing their homes over a judgment is there is a certain threshhold of equity in it or less. Some states like California have automatic "Homestead Exemptions". Other states may require the recording of a "Homestead Exemption" on the property.
If there is a $700.00 judgment against you for a credit card debt, you should file a claim of exemption regarding items sought to be levied upon with the court where the judgment is if the items sought to be levied upon are exempt from levy.
Likewise, you should make an attempt to enter into a written agreement with the judgment creditor to voluntarily pay down your judgment on terms you can make. Making monthly payments will be less stressful for you in amounts you can afford.
I doubt you will lose your home over over the $700.00 judgment. If you place money in your bank accounts (roof repair money), your bank account can be levied upon by the judgment creditor for payment of the $700.00 obligation and monies taken from your account.
I suggest working out a monthly payment plan to pay off the $700.00 judgment.
Good luck.
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