Is my home that I own at risk if I can't pay off credit card dept ?

by Jeff L.

I have been out of work for some time now and will be unable to pay credit card bills,my only source of income is my 30% V.A. disability checks each month and I am worried about receiving a judgement against my home which I can't borrow against because I am not working, I have 5 credit cards each with about a $4000.00 dollar balance. I live in the state of Oregon. Thank You for any advice.

Comments for Is my home that I own at risk if I can't pay off credit card dept ?

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Jan 15, 2010
Credit Card Debt and
by: Mary

So sorry to learn about your financial situation. I know it?s difficult for you right now. First, your credit card companies are unsecured creditors; in other words, when they agreed to extend you credit, they did not put a lien on your home. Therefore, they cannot take your home away from you if you fall behind on your credit card payments. Even so, if you fall behind on your card payments, the creditors can make life difficult for you -- call you demanding payment, turn the debts over to debt collectors, who may be quite aggressive, and even sue you for the money. Warning: You will be at risk for the loss of your home if you can't keep up with your mortgage payments.

I would suggest that you contact the Consumer Recovery Network (CRN), a fair and ethical debt settlement firm,, to find out if you are a candidate for settlement, which would involve negotiating with your credit card companies with the goal of getting them to agree to allow you to settle your debts for less than what you owe on them. If debt settlement is an option for you, CRN offers a comprehensive guide to handling your own negotiating, or you can hire CRN to do the negotiating for you. CRN will explain exactly how settlement works, including its risks and benefits.

If CRN concludes that you are not a good candidate for settlement given your finances, schedule an appointment with a consumer bankruptcy attorney. Your initial appointment should be free, although I advise that you confirm that fact up-front. Go to the web site of the National Association of Consumer Bankruptcy Attorneys,, for a referral to a board certified bankruptcy attorney in your area. The attorney will assess your financial situation and advise you about your best course of action, which may or may not be filing for bankruptcy.

Good luck resolving your money problems and please let Gerri and me know how things work out for you!


Jan 17, 2010
home and bankruptcy
by: Gerri

Jeff, I am sure this is a really difficult time for you. When you can't pay a credit card, it will be turned over to collections. If you still cannot pay the creditor may sue you to collect. Whether or not they will depends on a number of factors, including how likely they think they will be to collect.

If a creditor sues you and successfully gets a judgment against you, then they will then try to collect using whatever means are legal in your state. That may or may not include getting a lien against property you own. But that's a matter of state law and I am not an attorney so I can't say whether that would be possible in your case.

It sounds like the fear of the unknown is causing a lot of stress for you. I'd recommend you talk with a bankruptcy attorney. The first consultation will likely be free and will be confidential. I think you'll feel a lot better if you find out what can and cannot happen if you cannot pay these credit cards.

Let us know what happens OK?

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