Q: I have read that if your credit card debt and mortgage are from the same bank, that bankruptcy will not protect me from
a lien being placed on my home. Homestead doesn't apply. Is this true?
A: If you have a mortgage, you already have a lien on your property. Whether the credit card debt is tied to a lien on the property will depend on the terms of the credit card agreement. You should contact s lawyer to have them review this for you.
A: The credit card could be tied to the mortgage. The mortgage company already has a lien on your home.
A: That is not necessarily true. Generally, a Chapter 7 bankruptcy discharge removes your personal liability on the debt. Keep in mind, the discharge does not remove liens from property. Therefore, you may no longer have any personal responsibility to pay back the debt but a lien can still remain on the property.
Typically, credit cards are not secured by real estate. However, you should review your specific loan documents to confirm.
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