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CC debt can they take my house

Date: Sun, 01/25/2009 - 11:14
Submitted by on Sun, 01/25/2009 - 11:14
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I am currently buying a house on contract. So the deed is still in the current owners name. I have about 30 months to pay on it yet.

I have about 45,000 in CC debt. I live in Iowa. I am self employed with a new business and although I am doing good, last year with the economy I made some bad decisions and I am sure I will be making payments to the IRS for last year as well as trying to keep current this year.

So my ability to pay off CC debt is going to be tough unless I have just an outstanding year. I am about 1-2 months behind now on most of my bills. I had perfect payment history up until now.

I just want to make sure that this is not going to jeopodize my getting this house put into my name when I have it paid for. I have nothing else. A truck..paid for that I use for work. A cargo trailer that I am paying for and current on that I use for work. And this house that I bought for 25000 that wasn't even worth that and I am having to gut it.

When I have my house paid off then that frees up money for the CC. Not saying that I can't pay anything this year but the IRS is going to have to come first.

What can anyone tell me about what might happen? I am learning so much from this site.


I would think that right now, with the deed in someone else's name, they can't come after the house at all because they cannot put a lien on something that you don't have the title to. It would be like you were renting. Most likely, if you get to the point where you are sued, you would be able to negotiate some sort of settlement before it got to court. If it went to court, since you are self-employed, the judge would probably order some sort of payment plan. I don't know how wage garnishment works when you are self-employed. I don't think you have to worry about losing your home, though, because they couldn't come after that for 30 months. Even then, they would put a lien on it, which means if you go to sell it, they get their cut. So don't worry, you won't get put out on the street or anything.


Submitted by SusieQ on Sun, 01/25/2009 - 14:41

SusieQ

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