Changing Their Unsecured Debt Into A Secured Debt?
Q: I have about 30k in equity in my house and owe about 140K in unsecured debt. IT is going to be another 45 days before I file bankruptcy. Can these unsecured creditors file liens/judgements against my house thus changing their unsecured debt into a secured debt?
A: Generally not, unless suit has been filed or the unsecured creditor is the IRS or has some other right to file a lien. The Small Print: This response is for discussion purposes only. It isn't meant to be legal advice and you shouldn't treat it as such. If you want legal advice, speak with a local lawyer familiar with your state's laws who can review *all* of the facts and the law applicable to your situation.