The Cross Collateralization Trap
Many people are unpleasantly surprised to find themselves in danger of losing property because they are late on payments for what seems to be totally unrelated property. Too many people fall prey to the cross collateralization trap.
The Riverview cross collateralization attorneys of Spano & Woody, P.A., have experience helping clients find a way out of this trap. From our Riverview, Tampa, Clearwater and Tallahassee offices, we help clients find debt-relief solutions throughout the state of Florida and the South Shore area.
Credit Unions and Banks ∙ Cross Collateralization
Cross collateralization comes as a result of having multiple loans on different items through the same lender. The lender will use one item as security for a separate, unrelated loan.
As an example of cross collateralization: You could have a car loan and a boat loan from the same credit union. You have $75 to pay on the car loan and $7,500 on the boat loan. If these loans are cross collateralized, falling behind on your boat loan could result in the lender taking title for your car. You could lose your car because you fell behind in your boat payment. Contact Spano & Woody, P.A., for the help you need.
Our lawyers have experience with cross collateralization, and we can help you with all of the peripheral issues involved, including:
- Loss of property: The upshot having two assets serving as security for each other is that they are both susceptible to repossession and liens. You could lose one asset by falling into arrears with the other.
- Foreclosure: If one of your assets that is cross collateralized is your home, it is possible that your home is at risk of foreclosure.
- Bankruptcy: In many cases, debtors are not able to discharge cross-collateralized debts through Chapter 7 bankruptcy or Chapter 13 bankruptcy.
- Loan modification: In some cases, we can negotiate a loan workout with the bank to keep you from losing your car, home or other important assets.
We work with each client on an individual basis to provide advice and counsel regarding debt relief. If you are facing problems with cross collateralization, we will do everything we can to help you find the best solution for your situation.
Brandon Credit Card Debt Attorneys
Do not hesitate to contact a lawyer to get out of the cross collateralization trap. The sooner you call us, the more we can do to help you. Call 813-902-3897 or 888-432-7421 toll free, or contact us online to schedule a consultation with a lawyer from our firm.
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