Failure to repay credit card debt will not only result in collections, penalty interest and liquidated damages, but in serious cases, the bank may also sue you. This is a worrying thing for cardholders with small assets. For example, people who own houses are worried that the bank will auction the house to pay off the debt. Let’s learn today about the impact of non-payment of credit cards on the house in your name.

Will there be any consequences if I don’t pay off my credit card and the house in my name?

It is understood that if the amount owed to a credit card is relatively large, such as a principal of not less than 50,000, overdue for more than 3 months, and the bank has made two effective collections with no results, credit card fraud will be committed. If the cardholder fails to repay the loan within the specified time after a court ruling, the bank may ask the court to enforce the cardholder's assets.

As a result, the deposits and real estate in the name of the cardholder will be seized and frozen by the court. Although the value of the house is greater than the credit card debt, even if the cardholder only has this one house in his name, as long as the payment executor pays for a certain period The rent guarantees the living environment of the cardholder, and it may also be auctioned to pay off the debt. The details still depend on all the property rights of the house.

For example, if the house in the name of the cardholder is a loan house, and the loan is still being repaid on time, the loan bank and the credit card debt bank are not the same bank, because the real estate certificate was mortgaged to the bank before the mortgage was paid off. The right to auction the house is in the hands of the lending bank. The bank with credit card debt has no right to auction the property, let alone the lending bank will not agree.

In short, failure to repay credit card debt may also affect the house under your name, but it may not necessarily result in the house being auctioned for repayment. In order to avoid this situation from happening, it is best for cardholders to repay the outstanding balance as soon as possible before the bank sues. It is still unclear whether they can negotiate the repayment with the bank to minimize the impact.

Legal Basis

"Civil Procedure Law of the People's Republic of China"

Article 251: The person subject to execution fails to perform in accordance with the execution notice For obligations determined in legal documents, the People's Court has the power to seal up, detain, freeze, auction, and sell off the property of the person subject to execution who is required to perform the obligation. However, the daily necessities of the person subject to execution and his dependent family members shall be preserved.

When taking the measures mentioned in the preceding paragraph, the People's Court shall make a ruling.