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I have a consolidation loan with TD Canada Trust and cant pay it off. What can they do?
8 months ago I attempted to consolidate the balance of a $10K Visa and $8000 Unsecured Line of Credit into something more manageable. An $18,000 Consolidation Loan with minimum monthly payments of $420. I am nearly 6 months behind and cant even afford the min. monthly payment. I have considered filing bankruptcy, and at this point had given up on paying it off at all.. knowing that my credit rating will be a disaster for the next 7 years… The last time I talked to them the Representative claimed they could seize assets/property I may have, or even have my wages garnished if they took legal action.
This was NOT a secured form of credit AT ANY POINT! Can they do this? It was my understanding that the only negative impact(and its a big one) is that letting it lapse and forcing them to right it off would destroy my credit rating. I have searched for information related to this specifically to no avail.
Yes, they can garnish your wages or attach other assets. That’s the way it has to work, otherwise banks wouldn’t make loans because they could never collect them.
Even if a loan is not secured, it becomes secured if you don’t pay and they sue you. The only way they couldn’t attach assets would be if someone else had a secured loan to you that was secured by those assets.
So you should try again to work out a payment plan or restructuring. In the current environment, they may be more flexible and responsive. But if you just default, they will be able to go after everything, unless you declare bankruptcy.
Good luck, sorry it is not an easy time for you.
Headline News, April 19, 2009
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