Can a lien be placed against my home for credit card debt?
Full Question:
Answer:
A creditor may sue for money damages for an unpaid debt. In Pennsylvania, the statute of limitations on suing for a credit card debt is four years. Unlike a secured creditor, an unsecured creditor must first get win a judgment in court, and then ask the court to create a lien against the property before a lien can be created. In some states there are homestead exemptions for real property that protect a debtor’s interest in their residence from being attached by creditors. However, Pennsylvania exemptions only apply to personal property. In a bankruptcy case, a person in PA can use federal exemptions which allow $15,000 of the debtor’s interest in real property to be exempt from creditors.
The following are PA statutes:
42 Pa.C.S.A. § 8123. General monetary exemption
(a) General rule. — In addition to any other property
specifically exempted by this subchapter, property of the
judgment debtor (including bank notes, money, securities, real
property, judgments or other indebtedness due the judgment
debtor) to the value of $300 shall be exempt from attachment or
execution on a judgment. Within such time as may be prescribed by
general rules the judgment debtor may claim the exemption in kind
and may designate the specific items of property to which the
exemption provided by this section shall be applicable unless the
designated property is not capable of appropriate division, or
the judgment debtor may claim the exemption in cash out of the
proceeds of the sale.
(b) Exception. — Subsection (a) shall not apply to any
judgment:
(1) For support.
(2) Debtor who is not an individual.
(3) Obtained for board for four weeks or less.
(4) For $100 or less obtained for wages for manual labor.
(5) Obtained in foreclosing a mortgage secured upon real
property whether the judgment is by an action in mortgage
foreclosure or an action on a note, bond or other evidence
of indebtedness accompanying a mortgage. The exception to
the general monetary exemption provided for in this
paragraph shall be limited to the real property secured by
the mortgage. The exception shall not apply to any
deficiency judgment.
(c) Executions issued by minor judiciary. — As to executions
issued by the minor judiciary the amount of the exemption
specified in subsection (a) shall be reduced by the value of any
real or personal property of the judgment debtor which is
generally subject to attachment or execution but which by law is
not subject to attachments or executions issued by the minor
judiciary.
