Have you been sued by a creditor? You may be worried about what can happen next. In fact, you may not know that your home could be at risk.
How the Lien Works
When you are sued by a creditor for a balance owed and lose your case, the creditor will be granted a judgment against you. In turn, the creditor can get a judgment lien. This is attached to your property. The lien will remain until you pay off the debt or until the judgment it is tied to expires.
Now that your creditor is a lien holder, the debt is secured by your property. If you do not repay the debt, the creditor can force the sale of your property after receiving a writ of execution from the court.
So, Will the Creditor Sell My Home?
Typically, it is not profitable for a creditor to sell your property. You would need to repay any previously recorded liens first. An example is your mortgage. However, if you have enough equity in your home to cover any previous liens, foreclosure costs, mortgages, and the judgment amount, your home could be in danger.
What Can You Do?
Believe it or not, filing for bankruptcy can be your best bet. In bankruptcy, there is a homestead exemption which protects certain property from creditors. The exact amount that is protected will depend on the state in which you live. Contact a bankruptcy attorney to go over what options will work best for you.
Need More Information?
At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together, we would like to get to know you and we would like you to get to know us. We want you to be sure you are the right fit for us and that we are the perfect fit for you. This will allow you to be completely comfortable sharing intimate and difficult details of your case, so we can offer you representation to the fullest extent of the law. Call us today to set up a free consultation.