Can a credit card company seize my rental property to satisfy a judgment? I live in Florida.
A credit card company has gotten a judgment against me I have a rental property that helps pay my mortgage and other bills can they seize the property and sell it or can they just put a lien on it. I live in the state of Florida.
The short answer to your questions is yes, if a creditor receives a judgment from a Florida court (or a Florida court domesticates another state's judgment), the creditor can either ask the court to attach the judgment-debtor's property, or place a lien on it. A creditor may not seize a judgment-debtor's residence under Florida law.
See the Bills.com resource Florida Collection Laws to gain an understanding of Florida's rules for creditors, and the rights of debtors.
It is unlikely, however, that a credit card company would seize real property for an unsecured debt purely from a public relations standpoint. However, there is no legal prohibition from it doing so on an investment property.
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Struggling with debt?
If you are struggling with debt, you are not alone. According to the NY Federal Reserve total household debt as of Quarter Q4 2023 was $17.503 trillion. Student loan debt was $1.601 trillion and credit card debt was $1.129 trillion.
According to data gathered by Urban.org from a sample of credit reports, about 26% of people in the US have some kind of debt in collections. The median debt in collections is $1,739. Student loans and auto loans are common types of debt. Of people holding student debt, approximately 8% had student loans in collections. The national Auto/Retail debt delinquency rate was 4%.
Collection and delinquency rates vary by state. For example, in Hawaii, 11% have student loan debt. Of those holding student loan debt, 7% are in default. Auto/retail loan delinquency rate is 3%.
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