I took a loan for 176 and had too repay 250 I paid about three payments before renewing it. now i haven’t been able too pay the payments for about two months. so they are sueing me for not having the collateral that i put down. i’ve offered too make payments at a lower payment for two weeks in stead of by month and they refuse too take payment. and will sue by the 30th. is there anything I can do legally. too help keep from jail time? or help pay it.

Mike

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@GetOutOfDebtGuy

Other Related Articles to Read

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Read the full article at GetOutOfDebt.org, click here: I Am Being Sued for Not Having the Collateral. – Mike

“Dear Steve,

My son got a loan from Security Financial and used several items as collateral. He recently lost his job, fell behind on payments, and they came to the house to tell him that they would be taking him to court to get the collateral since he couldn’t pay. He told them he sold the collateral to make previous payments to them. Now they are threatening him with jail for the “felony” of selling his collateral.

Can Security really send my son to jail for selling the collateral on this loan?

Pat”

The Answer:

Dear Pat,

What I do know is that it is never a good idea to sell or dispose of any collateral that secures a loan without the lenders permission. However, I have no knowledge about the legal claim the collector is making.

You should contact a licensed attorney in your state and discuss the situation with them.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Other Related Articles to Read

• I Am Being Sued for Not Having the Collateral. – Mike
• What Happens if I Default on My Stock Options Loan? – Joyce
• Jake Wants His Transcript But He Defaulted On His Student Loan Debt
• Jerry Wants to Know How to Repay Debts He Can’t Afford
• Is Debt Consolidation a Viable Debt Solution For Unsecured Debt?

Read the full article at GetOutOfDebt.org, click here: The Lender is Threatening to Arrest My Son Because He Sold the Collateral For the Loan. – Pat

Joyce

“Dear Steve,

Retired from 5/3 Bank in 2003 I was offered a loan to purchase my Stock Options. These options were at $40.+ and $50.+ per share. I have a loan for $36,300 at prime with quarterly interest with no maturity date. The stock price now is around $2.00 per share. The collateral for this loan is the stock.

What happens if I default on this loan?

Joyce”

The Answer:

Dear Joyce,

I don’t know specifically but I can see it being anything good. Besides some possible tax consequences and personal pursuit for the debt, I’ve seen very few situations where someone was able to walk away with no repercussion.

Before you do anything I would advise you to check with a lawyer licensed in your state for specific advice about what your legal liability for this loan is beyond the collateral.

Additionally, I think you need to speak to a tax adviser and ask if there is a taxable event to you as the result of not paying back this loan. If it is viewed as forgiven debt you could owe income tax on the loan amount and that’s not something to sneeze at.

Big Hug!

@GetOutOfDebtGuy

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Read the full article at GetOutOfDebt.org, click here: What Happens if I Default on My Stock Options Loan? – Joyce

“Dear Steve,

I currently owe $30,000 directly to a university as a collection with 6% interest. They will not release my transcripts from my one year of study at the university until I have paid the amount in full. I am making the minimum payment every month, but my income is roughly $12-13 an hour because all I have is my high school diploma. The interest keeps accruing and I am unable to pay it off in the foreseeable future on my income. I would like to go back to school or complete some sort of training program to obtain a higher paying job, but cannot do so without my undergraduate transcripts.

How can I pay off the university in order to get my transcripts and obtain training to get a higher paying job?

Jake”

The Answer:

Dear Jake,

The college is holding the transcript hostage because it is the only collateral they’ve got. It certainly does not sound like this was a government backed student loan so your options are significantly limited.

Sometimes debt is just the beginning of their woes. Students who leave school because they can’t pay their bills often face a second sanction — a freeze on their education. Universities typically refuse to release transcripts for students who owe money, preventing those who’ve dropped out from finishing school elsewhere, which would better position them to repay the debt. Source

Over the years I’ve had a number of clients that have been in this very situation and until the debt is paid, the transcript remains a hostage.

Typically the issue surrounds your college regulations or student contract which says that all outstanding fees must be paid to receive course credit and official transcripts.

Your best course of action would be to attempt to negotiate a suitable solution with the university or hire a lawyer to look into the issue to determine if the college has violated the student contract in any way that may allow you to get an official transcript.

This is not necessarily a great solution but then again, I’m not a huge fan of student loans because the consequences for nonpayment can be very severe, as you’ve learned.

Big Hug!

@GetOutOfDebtGuy

The Answer:

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Read the full article at GetOutOfDebt.org, click here: Jake Wants His Transcript But He Defaulted On His Student Loan Debt

“Dear Steve,

I have a time deposit at the bank and borrowed 80% of it using the deposit as collateral. I already skipped 3 payments even for the interest alone.

My car is also mortgaged at another lending firm and I already skipped 2 monthly payment for my amortization. I have a small business but the income I get is just good for food.

Based on my situation above what can you advise or a remedy to do on my part. Thanks

Jerry”

The Answer:

Dear Jerry,

I suppose this is a variation of the good news – bad news situation. In your case, since you deposited the money with a bank and then took a loan using the deposit as collateral, the bank can take the money from your deposit to pay off the bank loan.

It might actually make sense to ask them to do that since it does not sound like there is a reasonable expectation that you will be able to get caught up on that loan again in this current economic climate.

The money that is leftover from your deposit, after paying off the loan, could be used to help bring the car loan current.

Of course if the car is not affordable at all with your current income, that is a different matter and bringing the car loan current may just give you a few more months with the car before it is repossessed if you fall far behind again.

I hope that helps.

Steve

The Answer:

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Read the full article at GetOutOfDebt.org, click here: Jerry Wants to Know How to Repay Debts He Can’t Afford

It seems like every day the question of debt consolidation comes up and I think it is starting to drive me a little crazy. Some where in the human DNA is a gene that makes people think that when you have problems paying your bills that debt consolidation is the natural debt solution.

If I had my choice I’d rather make the bills magically vanish. I’d rather have that little leprechaun on the Lucky Charms box come and make my debt magically disappear. Debt consolidation does not do that. Instead, debt consolidation just wraps your debts into a new obligation.

It isn’t even possible to get a debt reduction from debt consolidation. The best debt consolidation program in the world is not going to consolidate your debts into a smaller balance. You’ll still owe what you owe. The only way to reduce your monthly payment would be by paying off your debts with a debt consolidation loan, typically a loan using your home as collateral.

If you default on your new debt consolidation mortgage, the bank will take your home and you will lose your roof. The consequences from defaulting on a debt consolidation mortgage refinancing are pretty severe so just know what you are getting yourself into before you sign on the line.

Borrowing money to pay off your debts may allow you to lower your monthly payment but that does not lower the amount you owe. Let’s be clear about that. The reason your payment may be lower is because the interest rate is lower and the length of time to repay the loan may be longer as well.

The most realistic ways to eliminate credit card debt quickly is if you happen to come into a windfall of money, like winning the lottery or inheriting money after the death of a loved one. I’ve seen both of these things actually happen and people have managed to get out of debt completely.

It’s really hard to time a lottery win or the death of a rich relative to your desire for a debt consolidation loan so don’t hold your breath waiting for that to happen.

Source: Is Debt Consolidation a Viable Debt Solution For Unsecured Debt?

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Read the full article at GetOutOfDebt.org, click here: Is Debt Consolidation a Viable Debt Solution For Unsecured Debt?