Can creditors put a lien on personal property?

Hi swanneesue.

Welcome to the forum. The creditors of unsecured debts can place a lien against your personal property but to place a lien against your property, they will have to sue you and get court judgment to put lien on your real property. You can try to contact the creditors and work out a repayment plan to pay off the creditors. Feel free to ask if you have any further questions.

Best of luck,
Larry

Right on Larry! :D

I'd just like to add that it would be very rare for a creditor to go as far as placing a lien on any personal property you might own. Most creditors would rather just sell your debt off to some collection agency instead of bearing the financial burden of taking you to court. I guess it depends on the creditor and how much money you owe them...

good luck!

Welcome to our forum swanneesue,

To answer your question this will vary on state guidelines.
Not all states allow this, and the above posters are correct with the process of obtaining a judgement.

Make sure to respond to all summons if you are served or they will win a default judgement against you. Also, make sure to check the 'statute of limitations' of your state. Sometimes the statute of limitations are 'up', but the creditor still goes after the borrower. If they do take you to court, then just bring up the statute of limitations. The judge will automatically render a verdict in your favor.

Good luck!

I have a lein on my property for debt my ex-husband has. The creditor are telling me to sell my home and give half of the proceeds to them. My EX owes them 6500 I offered to pay the 6500 to remove the judgement and lein My home is in both of our names so the creditor is saying the own half of my home. Why can't I just pay the 6500? Can they actually own my ex-husband's half of the home?

Hi Daisy welcome to MortgageFit!

I would recommend that you FIRST speak to a real estate attorney. You need to get a copy of the judgement/lien also. DO NOT negotiate anything until you do the above first.

Collection companies are known for lying, and they can't be trusted.
One thing that you have to take in account is that the judgement probably has an interest rate attached to it. If you dont pay it off soon, then the interest will continue to accrue on the account.

Also, different states have different laws pertaining to a lien on homestead property. This is where your real estate attorney can help you.

thanks
Robert

good to see you again, robert. i have to agree with you in that their "ownership" of half of the house is one of those big lies told to try to persuade someone to do something immediately.

in all likelihood, there is a judgment lien that would need to be paid prior to your disposing of the property (such as a sale). but it's favorable to satisfy the lien as soon as you can so as to eliminate the interest costs that would add up.

My husband and I have recently purchased land appraised at 9000.00. Five years ago I had 2 car repossessions in the same year. Is it possible for the companies to place a lien on our land (which we plan to put a home on soon) due to the balances owed on these repossessions? The repossessions show on my credit report as 'charge offs'.

if the lenders in question seek judgment in court against you, they would have the right to file a judment lien, yes. are there judgments outstanding against you in connection with the repossessions at this time?

I have not had any papers served on me about a judgment. I am a licensed practical nurse and if there were any charges against me I would have been made aware of them while I was in school which was less than a year ago. Should I contact the court system of the county where this took place to make sure?

you could certainly do that felicia.

If you owe money to a creditor then he can put a lien on anything you own..
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from the perspective of investor, it is very easy for a contractor to put a lien on your house if you do not pay for his job..

I have a question..maybe someone can answer..I live in GTA toronto..I had a debt of $26000..My husband lost a job and we couldnt pay..while i was away from the country my creditors got the judgment against me..I didnt know until i got the papers that they have put lein against my house after sometime..i tried negotiating but they wanted the whole amount at once..I sold my house 2 weeks ago and i found out they R charging me $45,000 with interest and legal fees..I lost almost $75,000 in closing costs and my legal fees and bla bla and didnt got a penny..my question is are they entitle to charge tht big interest from sept 2008 to july 2009 $15000??

Hi ajk!

Welcome to forums!

I think the lender is charging the interest rate as well as the late fees associated with it. That's the reason why they have charged a high amount to you. It would be better if you could contact your lender and negotiate for a low payment. However, it would depend upon the discretion of the lender whether or not he would consider your request.

Feel free to ask if you've further queries.

Sussane

i have no notion what the laws are in canada, but i can address this from what i know about my local laws in the usa. once a creditor obtains a judgment, that creditor is entitled to continue to add interest until the debt is repaid. i'm not certain what the rate of interest may be, but the numbers will mount up.

i will agree with you, however, based on what you said to be the case, that the interest charged ($15000?) is quite high. i gather the remainder was legal fees. you can likely check with the court which issued the judgment and/or an attorney in order to determine if what you've been charged was fair.