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If you owe money to credit card companies will a revocable trust protect your house from a lien ?
I am on SSDI and recently my husband was forced to quit his job for health reasons. He has been awarded SSDI. Therefore, we are unable to pay Discover card for the $ 7000.00 that we owe them. If we create a revocable trust and place all of our real property in that trust will the property be protected from a lien ?
1 Answer
- ReenaLv 710 years agoFavorite Answer
Why would Discover put a lien on your property?
$7000 isn't enough credit card debt to make them go to such an extensive attempt to recoup their losses. They will simply charge off the $7000 and sell the debt to a collection agency which in turn could seek a judgment against you. Should it come to that point all you have to do is show up in court and point to the fact that your income is solely from SSDI and that SSDI payments are exempt from garnishments orders for credit card debt and that means they can't even get a judgment against you.
There are other options of course: You can take out a loan against your property and pay Discover off and close the account; you can file bankruptcy (may have some problems getting approved if all you owe is this $7000 to Discover) or you can simply do nothing.... because other than phone calls from 3rd party collection agencies... little will happen.
