In a recent call, a man in his 70s was enquiring about bankruptcy to deal with debt.
The debt turns out to be allegedly owed to a debt buyer. Debt buyers are companies buy old and often discharged debt whether it is credit cards, personal loans or medical debt for pennies on the dollar and turn handsome profits by collecting on the full amount owed.
This particular debt buyer’s debt collector was as expected aggressive and misleading to the caller.
The caller was told that the debt buyer would put a lien on his house if he did not pay and pay right away.
The caller was shaken by this and understandably did not want to lose the house he and his wife have worked all their lives to purchase.
Can a creditor put a lien on this man’s house?
The man and his wife owned the house as tenants by entireties.
This is a legal fiction that means that the wife owns the whole house just as much as the husband does. Therefore, unless both husband and wife owe a debt then a creditor of just one spouse cannot attach a lien to the house.
The truth is that the debt buyer cannot put a lien on this man’s house because it is titled in both he and his wife’s names and the debt is the man’s name only.
This is an example of why it is important to get legal advice before taking any action.
At the end of the call, the man was more informed and most importantly he had a little peace of mind. He understands his options going forward and he can make an educated decision now instead of operating out of fear.
He was thinking about taking money out of retirement accounts to keep from losing his house.
This is an all too common mistake that is costly and an unforced error.
First, the money in retirement accounts is often fully protected from creditors other than the Federal Government and State governments. Hence, a debt buyer has no chance in hell of getting that money.
A call is free and the information is free. It could save you a lot of heartache and money as well.
Got questions call me at 410-849-9529.
