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Can A Credit Card Company Seize Your Property?

 

Can A Credit Card Company Seize Your Property?

Yes a CREDIT Card company can easily seize your property with some legal assistance. Don't fool yourself by thinking that Credit card debt is unsecure and not tied to property.

Indirectly it can be just as disastrous as secure loans that are attached to your property; to recover the borrowed amount should you fail to meet the obligation.

(Learn Information Security Online and make yourself recession proof).

Mortgage debt: Are taken much more seriously, because people know it may lead to seizure of their assets. While they tend to self-deceptively take unsecure credit card debt as insignificant.

Ironically in one way or another the both the same. A credit card company can take you to court within 4 years of the dispute; to acquire a judgement.

Which grants them legal authorization to auction your home, car or anything valuable to recover the ballooned amount of money owed.

Meaning you're not only repaying the actual debt; but also compounded interest fees, the administration cost and legal fees.

Which is a nice way of saying they can pretty much sell all your belongings. Because the judgement can attach your non-exempt property in settlement of past-due debts.

What Assets Are Exempt From Creditors?

Your cutlery, crockery, clothing, blankets, beds, sometimes even your house or car. Unless they're valuable enough to satisfy the debt; for instance you get hit by a court judgment from creditors.

For those who don't know: Exemptions means free from an obligation. In other words; to grant a (debtor) freedom, or immunity from certain types of property being seized.

In the terms of debt collections; all states have allocated immunity for certain types of property as “exempt” or in simple terms to be protected from seizure.

Can You Be Taken To Court For Credit Card Debt?

Yes Credit card debt can eventually end-up in court. This is usually the final step after many other attempts trying teach a repayment agreement with the debtor.

  1. Firstly your credit card account goes into the red zone, your account gets frozen and your credit records get negatively affected.
  2. Next they may start with phone calls from their legal department, or a debt collection syndicate.
  3. Then comes the warning letters; which are somewhat threatening. As it explains the dangers of avoiding your installments and potential legal repercussions.
  4. It may even explain your rights for debt-review consultation from a third party organization, and also their rights as a creditor to take legal action at your expense..

If you still avoid communication, or contacting them to arrange some repayment agreement.

They may decide to take it a step further and act on their rights, by taking you to court for garnish or attachment of non-exempted assets.

Can Debt Collectors Seize Personal Property?

Once a debt collector took you to court for a garnish order. Your case are already close to Sheriff level; making it even more alarming.

Because not only does it blacken your credit profile; but it also exposes you to personal property seizures.

Say you creditor obtained a garnish order, which still fail to recover repayment. They can now escalate it to a Sheriff to seize your personal property.

In Summary:

Secure or unsecure debts in one way or another can attach your valuable assets to settle the debt.

Although in most Countries you can go to jail for debt. Avoiding a payment agreement can criminalize you and remove your right to your own: Income, vehicle, house or any other valuables.

If you look at it from another perspective, you should take full responsibility of your financial commitment. Because in the context of the law, avoiding your debt is the same like stealing.