By: Robert J. Nahoum
If you have been sued by a debt collector and you lose the case, or if you fail to answer the case the debt collector will obtain a judgment against you. A judgment is a court order that says you owe the debt collector money.
In New York State, the judgment results in a lien on your home as well as any other real property you own in whatever county or counties the judgment is filed. A lien is a legal claim against your property. If the debt collector forecloses on the lien, they could take your property and sell it to pay off the debt.
The lien will stay on your property for 10-eyars. However, with the proper document filing, that period can be extended for an additional 10-years.
If you sell your property, the debt collector will have to be paid out of the proceeds of the sale.
There are a few things you can do to protect yourself from having a lien placed on your real property:
- Respond to the debt collection lawsuit. If you are sued by a debt collector, you should respond to the lawsuit. This will give you the opportunity to defend yourself and challenge the debt.
- Pay the debt. If you can afford to pay the debt, you should do so. This will prevent the debt collector from obtaining a default judgment against you.
- Negotiate a settlement with the debt collector. You may be able to negotiate a settlement with the debt collector that does not involve a lien on your real property.
If you need help settling or defending a debt collection law suit, stopping harassing debt collectors or suing a debt collector, contact us today to see what we can do for you.
The Law Offices of Robert J. Nahoum, P.C
(845) 232-0202
www.nahoumlaw.com
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