Credit card lien on property?

[ahanu]

My Bf and his cousin had no income other than Social Security Disability coming in Yes they know they were in the wrong for accepting Credit Cards and running them up But that is the only way they could survive for yrs NOW the Credit Card debtors have put liens on both properties that he and she had their names on Is it something if they file Bankruptcy that would help them out...I just came into their lives not but 2 yrs ago and this happened within the last 6 to 7 yrs...PLEASE HELP US As His MOM which is 92 wouldnt take his name off her property now they have a lien on it for 16,000 dollars She is trying to sell but wants him to pay it off He cant he has NO INCOME and no disability coming in His cousin has only 629 coming in a month....So Please let us know what to do We live in Michigan if that will help to give us the laws for that state.....

[gedalyahu]

First, the credit card company cannot put a lien on the property unless the credit card company filed a lawsuit against your BF and cousin and won. Then, the credit card company obtained an abstract of judgment from the court and had it recorded in various counties where they thought he lived.

Next, have your BF and cousin contact these credit card companies and see if they can work out (1) a payment plan to pay the entire amount off or (2) a payment plan to only pay a portion of it. The credit card companies may be willing to go with #2 so they can recover some money.

Bankruptcy should only be considered as a last resort. Plus, since his name is on his mother's property, it might not be possible for this debt to be discharged.

Your BF and his cousin will have to contact a bankruptcy attorney - but remember - that costs money too - it may cost anywhere from $1000 - 5000 to file bankruptcy (and the attorney will require money up front) so it may be better to try to negotiate with the credit card companies.

The mother can sell her property, but the liens would (1) either have to be paid off first or (2) be paid from the proceeds of the sale.

Please look at the website below for additional information. It doesn't matter which state you live in for bankruptcy because that is with the Federal Bankruptcy Court.

[eliot]

Ya know my mother always told me; "you make your bed your lie in it!" I suggest they work out a budget to pay these liens off. Filing bankruptcy should never be a consideration when they willfully mismanaged their money.