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  1. #1
    Join Date
    Jul 2013
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    1

    Default What is a Lender's Recourse if a Debtor Sells the Collateral for a Loan

    My question involves collection proceedings in the State of: Texas

    I took out a signature loan several years ago that is secured by a Security Agreement referencing "personal property". The property is listed on the agreement as "Sony 50' TV" and "PS3". I have made the mistake of renewing this loan several times and I currently owe them about $2100. I lost my job several months ago and have been struggling to pay the necessities and I can no longer make these payments (as well as other obligations). In the years that have passed since this agreement was first signed, I no longer own these items. What recourse will the loan company have against me?

  2. #2
    Join Date
    Sep 2005
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    98,846

    Default Re: What is a Lender's Recourse if a Debtor Sells the Collateral for a Loan

    You need to start by reading your contract, as it may describe seller remedies (e.g., acceleration). Beyond that, obviously, the lender can sue, get a judgment, and use judicial remedies to enforce it, work with a collection agency, etc.

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