Q: If I have a personal unsecured loan with a Bank. For any reason if I lose my job and cannot repay the loan can the Bank
File a lien against my residence or land I own free and clear or would the Bank file a judgement against me which would follow me, so if I sold a property or my residence the Bank get paid first?
A:
Banks do not file liens. If you owe money to the bank and don't pay the bank may turn over the debt to a debt collector. Eventually, the bank may sue you and if they do, they will probably recover a judgment unless you have some sort of valid defense. If and when that happens, then the judgment will be entered as a lien upon the real and personal property that you have and you will not be able to sell the property unless you pay off the judgment.
I guess you need to figure out how much you owe and decide whether you will be able to pay all or some of it back. It may make sense to file bankruptcy. Or it may make sense to start saving up and trying to settle at some point. It its an unsecured personal loan, most creditors will settle for something less than 100% but it depends.
If you want to discuss this in confidence, you can email me at rachelforjustice@hotmail.com.
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