Question by Franziz R: What will happen if a person cannot pay a huge amount of personal loan?
A friend of mine has a $ 20,000 equity and $ 40,000 personal loan in the bank and was not able to pay a single amount because he was laid off from his job. What do you think the bank will do to his property and to him?
Answer by Mr. G
They will repossess the collateral (house, car, etc) that he placed on the loans.
They will take him to court to recoup the difference between the collateral’s actual value and the amounts of the loans.
Finally, his credit will be shot.
I would suggest he get himself a lawyer to see if there is a way out…bankruptcy perhaps??
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Question by Pozko: What will happen to unsercured personal loan if i file bankruptcy? Will it stay or disapear?
I am not sure if i file for bankruptcy or not? I have about 20,000$ credit cards debts, and i have also 20,000 unsecured personal loan.
Answer by sfuller94
To be a candidate for Bankruptcy, your debts need to exceed your assets by a certain amount. It varies with each state. But, just because you declare bankruptcy, does not mean your debts disappear.
The courts can mandate a payment plan that you must follow. Remember that bankruptcy may stop the bill collectors from calling but it’s not without cost. A bankruptcy will stay on your credit for around 10 years.
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