If you have fallen behind on paying your bills, you may be wondering if you could lose your home. When facing financial turmoil, this is naturally what folks fear most. Fortunately, your home is safe from any creditors who do not have a mortgage or lien on it. Credit card companies and other unsecured loan holders can’t come and simply take your property or home after missing a few payments.
A creditor will first start making collection attempts by mail, phone calls or other methods. If these attempts are unsuccessful, there is a good chance that they will file a lawsuit against you. By doing so, the creditor is hoping to get a judgment which would allow them to transition from being an unsecured creditor a to secured creditor.
A judgment is issued by the court, and it states that the creditor has won the lawsuit and has a right to collect a specified amount of money from you. A creditor can get a judgment against you if you don’t respond to a complaint, don’t comply with a judge’s order, lose a summary judgment motion or lose a trial. Once a judgment has been issued, you become a judgment debtor and they become a judgment creditor.