credit card debt
Question: Hello! Can you please tell me if you fall behind in credit card payments or just pay small payments to credit card companies….can they sue you or place a lien on a mortgaged home? We are a one income home(pension), car is on a loan and our home is mortgaged. Can they take our home, force us to sell or move out? I am very worried! I do not want a consumer proposal or go bankrupt. I thank you in advance. M
Answer: In theory, yes, if you default on your payments the credit card company could take you to court, sue you, obtain a judgment against you, and then enforce that judgment by placing a lien on your home.
However, that is very unlikely. Since your home already has a mortgage on it, there is probably not a huge amount of equity. Also, the credit card company, in order to get their money, would have to sell the home and pay off the first mortgage holder. It is unlikely they will want to spend that much money to collect what you owe them on your credit card.
You should attempt to make payment arrangements with the credit card company. If that’s not possible, it may be time to consider your other debt management options.