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What can a bank do if you signed a personal guarantee and then default on the line of credit?
Wiki User
∙ 14y ago
It depends on the type of borrowing. If you have borrowed money on a hire purchase loan (for a car for example), then they can take back the car. If, however, you have taken an unsecured loan out, then they can gain a court order to take posessions from you to the value of what you owe. In both cases, they would only do this as a last resort as it costs them money to go through the court.
You will, however, find it very difficult to borrow money in the future
Wiki User
∙ 14y ago
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Who are solely responsible for credit card defaults?
It may not be a "sole" party...it is everyone that signed as a responsible party (primary and co-signers) for the line of credit that was used....they are responsible to pay the charges and therefore are responsible if it is in default and the charge hasn't been paid.
Your credit was not used to get the loan but your name will be on the property will your credit score be affected?
If you didn't sign the mortgage and without your social security number being considered as basis for the loan the financial institution will not report for or against you. If you signed the note and mortgage, in the case of a default you will be responsible and a foreclosure will affect your credit record.
If you are a cosigner for someone and they default on the payments and the cosigner pays the debt off can you have the past due amount removed from your credit report?
No, you signed, you are equally responsible for the payments, you are also equally responsible for what happens with regard to default. This is why the lender permitted you to sign as a co-securer of the original loan.
Are the heirs responsible for credit card debt in the state of pa?
Not on a personal level. Typically the estate is responsible for paying the debts, including the credit cards. If an heir co-signed any paperwork regarding the credit card, they may be held liable.
Is a co-signed loan on my credit report?
The short answer is yes. The long answer is that when you co-sign a loan for another person, you agree to be responsible for that loan should they default so if they fail to pay the loan back, the creditor will expect you to shoulder the responsibility. If you fail to pay the loan back, it goes on your credit report.
In a common law state such a Wisconsin will a personal guarantee signed by one spouse and not the other hold up in court?
Whoever signed the personal guarantee is solely responsible for whatever he/she signed for. The spouse is held harmless. However, any joint property (as viewed by the state of Wisconsin) is vulnerable to remedy the obligation he/she signed to guarantee.
Does a personal bankruptcy eliminate a personal guaranty on business debt?
Yes. I filed for that reason alone. I signed a lease for a business. I was told I had to sign a personal guarantee. I had to file a personal BK because of it. When I left the lease they tried to sue the business....but the business had nothing, so they came after me because I signed a personal guarantee. I filed a Bankruptcy and it was discharged.
Can a credit union in Texas repo an automobile prior to a date stated in 2 formal letters and signed by the bank manager?
READ your CONTRACT. You can be repoed whenever you are in DEFAULT.
If i cosigned on a loan then the person goes bankrupt then they default on a bankrupt what happen?
You signed to guarantee the loan. That means that you guaranteed to pay the loan if something went wrong. Something went wrong so you get to pay the loan.
Who are solely responsible for credit card defaults?
It may not be a "sole" party...it is everyone that signed as a responsible party (primary and co-signers) for the line of credit that was used....they are responsible to pay the charges and therefore are responsible if it is in default and the charge hasn't been paid.
Your credit was not used to get the loan but your name will be on the property will your credit score be affected?
If you didn't sign the mortgage and without your social security number being considered as basis for the loan the financial institution will not report for or against you. If you signed the note and mortgage, in the case of a default you will be responsible and a foreclosure will affect your credit record.
If you are a cosigner for someone and they default on the payments and the cosigner pays the debt off can you have the past due amount removed from your credit report?
No, you signed, you are equally responsible for the payments, you are also equally responsible for what happens with regard to default. This is why the lender permitted you to sign as a co-securer of the original loan.
Are the heirs responsible for credit card debt in the state of pa?
Not on a personal level. Typically the estate is responsible for paying the debts, including the credit cards. If an heir co-signed any paperwork regarding the credit card, they may be held liable.
Can a c corporation file for bankruptcy and the owners protect their personal assets even if they signed personal guarantees with some banks?
No, the owners assets WOULD still be subject to seizure from creditors for all debts that were PERSONALLY guaranteed. The only way to protect personal assets would be for the owners themselves to file personal BK.
Do credit cards have to be signed?
yes
Is it a law that credit cards have to be signed?
no
Is there any protection for cosigners?
Not really unless you have a signed contract and are willing to sue them. Even then If they screw up on the payments your credit rating will go down. If they completely default your credit rating would go down and you might end up having to pay the entire loan ammount.
