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Can Unpaid Credit Card Debt Cause Lien w/ 3 Owners?

Posted on: 07th Feb, 2011 10:52 am
Can Unpaid Credit Card Debt Cause Lien on a home that has 3 owners?

My situation is this, my dad, step mom, and I own a home in Massachusetts and my father is sick and has quiet a bit of credit card debt. He is quickly falling behind and I want to protect myself and ownership. We have a homestead so they can not force us to sell. However, i am worried that when the day comes that we want to sell we will have 5-15k in debt to pay off first.

Can they put a lien when there are multiple owners, only 1 of which has defaulted on their debt?

If we take him off the Deed, does that prevent them from being able to put a lien on the home?

Do creditors usually sue over balances under 10k?

Thanks for your anticipated help!!
Hi AliK!

Welcome to forums!

There are chances your the creditor can file a lawsuit against your father and get a judgment to place a lien on the property. However, as there are multiple owners, there are high chances that the creditor will charge off the account to a collection agency.

If your father's name is removed from the property deed, then none of your father's creditors can come after the property. Creditors can sue a borrower though the balance is under 10k.

Feel free to ask if you've further queries.

Sussane
Posted on: 07th Feb, 2011 07:04 pm
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