my parents who recently retired have been struggling with credit card debts and keeping up with their mortgage. most of their credit cards have been helpful in resolving their debt but there is one that has been literally harassing them.
(1) Yes, a creditor can go to court and seek an attachment on the home. What that means then is that if and when the property is sold, the creditor would get any funds to the extent that there's anything left after the mortgage and any other priorities are paid.
(2) If your parents feel that a debt collector is harassing them they have the right to tell the collector to stop contacting them inappropriately, pursuant to the Federal Debt Collection Practices Act. If the harrassment continues, the collectors would be liable for up to $1,000 for each violation.
(3) Your parents should consider a bankruptcy. This does not have the "stigma" it once has, and if your parents qualify for a Chapter 7, then all of their unsecured debts would be discharged. Or, in a Chapter 13, they could propose a payment plan in which they catch up on the mortgage and prioritize that payment, while quite possibly paying much less than 100% of their unsecured debts such as the credit cards. Their ERISA savings plans are exempt in nearly all circumstances, and they should go see an attorney about these options sooner rather than later before they dip into savings to pay debt.
Finally, filing the bankruptcy will stop any collection law suit.
This answer is provided for informational purposes only. Actual legal advice can only be provided in an office consultation by an attorney licensed in your jurisdiction, with experience in the area of law in which your concern lies.
