Normally, we never worry about our clients losing their homes to foreclosure for credit card debt. However, Canadian bank Credigy Receivables is taking advantage of unsuspecting debtors by purchasing judgment liens for credit card debts. As the following article discusses, Credigy assumes these judgments and then files suit against these debtors and makes them as defendants in foreclosure lawsuits.
These suits have been popping up in Los Angeles, Orange and San Bernardino. The problem is that many debtors will ignore such a court proceeding and fail to appear in court. This is the worst thing that could happen. Failing to appear will likely lead to a default judgment, this means that the court will accept as true the allegations of the creditor. With that in hand, outfits such as Credigy Receivables are playing the system to lien real property owned by a debtor and seek to foreclose on their property. This is a ruthless means to collect on debts, which oftentimes are so small, they don’t seem to warrant such vigorous collection efforts. Case in point is the 71-year-old woman threatened with the loss of her home over a $1,803 judgment. These threats often force people to settle to avoid the foreclosure process. If you find yourself faced with such a threat, we encourage you to explore what options you might have available to you. An attorney experienced in debt settlement may be able to assist you in navigating through this and forcing these vultures to back down on their collection efforts, which might include threatening to take your home for a seemingly small debt.