Default on secured loan?
I have several secured loans. I had to put up items like tv, dvd player, lawnmower, watch, and other things like that. I put the same collateral for each loan. I am unable to pay these loans now and only the first company to take the collateral will be able to get it. Default on secured loan?
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What is a worst case scenerio?
What about the other loan companies?
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I live in South Carolina and I don’t think they can garnish wages in this state.
Will they just take me to court and sue me, or will they just write it off and put it on my credit?
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Comment by John T
Yes, they have a legal right to go after you. Chapter 11 will protect you from creditors, but it is an emotional and can be a drawn out affair. It will also negatively impact your ability to get future loans.
Your best bet is to see if you can restructure your debts and pay them back over a longer time, if you want to maintain a positive credit history. The problem with Chapter 11 is that it may haunt you for years to come when you want to buy a house or car.