I know that they will repossess whatever you used as collateral, but what happens if you no longer have the stuff? I have a few of those personal loans that you have to give serial numbers of merchandise as collateral and I no longer have some of the items. If I was to default on all of the loans (which all have the same items listed) what will happen? Would there be criminal charges?
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2 Comments
You could possibly be charged with theft by conversion or fraud, but it would be unlikely to stick unless it was a very deliberate act. You are not supposed to be able to sell property that is used as collateral by the way.
Anyhow, the most likely result would be that you get a civil judgement against you and an order to pay the value.
100% Yes.
Just because you sold the stuff does not mean you’re scott free.
Make payments each and every month at the same time. An effort to pay will delay sending through the courts.
A good effort to pay is 10% off balance each month. They may take as little as 5%. Don’t ask them for a payment schedule. You make your own and tell them what you are going to do.
GET ORGANIZED. Make a years worth of envelopes with the 15 of the month written on them. Make a years worth of printed slips with your address and account number. And keep a spreadsheet of payments and amounts owed.
You must pay each and every month on the same exact day.
If the amount is large enough you could be charged with fraud and spend time in jail.
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