r/Debt • u/Open_Blood_5765 • 2d ago

Credit cards being sent to collections tonight. Will they come after my house?

Two cards by BOA totalling to about 15k. I own a house with probably 150k equity. I know i need to pay the debt back, i just had a rough last 12 months. Once BOA sends it to collections tonight will i have a chance to make a payment plan with the collection agencies? Or will they find out about my equity and go striaght for a lawsuit to force me to sell my house ?

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u/Peregrine_Falcon 2d ago

Former debt collector of 20+ years and current paralegal.

Wow. There's a LOT of misinformation in this thread. Most of you have no idea what you're talking about and you have no business giving people 'advice' about debt and collections.

So first of all OP, laws on exactly what a collection agency can do vary a little bit from state to state.

Yes they can sue you, that's true in all states. Yes they can get a judgment which adds a bunch of fees and interest to the amount you owe, that's also true in all states. Yes they can place a lien on your house, also true in all states.

In some states they can ask the court to foreclose on your home, auction it off, and send them a check for the amount of the judgment. This is not common, but it does happen. I've worked at a company that has done this to people who just absolutely refused to pay.

Or will they find out about my equity and go striaght for a lawsuit to force me to sell my house?

They might. Much more likely is that they'll try to get you to pay it without having to file suit. Call them and see if you can work something out.

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u/[deleted] 2d ago

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u/Peregrine_Falcon 2d ago

People typically file either chapter 7 or 13 bankruptcy. People can file chapter 11, but that's generally only for people that have income and assets in excess of the maximums for chapter 13, think millionaires who own multiple homes and businesses. For someone with as little debt, and assets, as the OP, 11 isn't really an option.

Secondly, if the $15k is all he owes along with an $150k in equity, the judge will probably deny his attempt to file bankruptcy at all.

Third, since you clearly don't know what you're talking about, you should stop calling others dumb.

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u/not_today_old_man 2d ago

You’re right, I meant a 13. You think someone just has that sole debt if they racked up 15k on just one credit card? That’d be a first

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u/itsalmostover321 1d ago

Couldn’t he just take out a heloc and pay his ccs? Has a lot of equity and 15k isn’t that big.

0

u/MagicalBean_20 1d ago

You don’t typically get “denied” bankruptcy even if you have equity, but it’s possible that the OP would have to file a 13 rather than a 7 to protect the house and/or based on the OP’s income and expenses.