If you have several accounts with a bank and default on one of them, what canthe bank do?

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If you have several accounts with a bank and default on one of them, what canthe bank do?

If you have 3 loans at the same bank (mobile home, auto, and credit card) and you don’t pay on the credit card, what can happen? Can the bank attach your other assets? 

Asked on October 10, 2010 under Bankruptcy Law, Maryland

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Unless all the accounts are tied in to each other (one is used all collateral for the others, then no, they can not "automatically" attach the other assets.  But if they get a judgement against you then they know exactly where to find your assets, don't they?  At that point in time they can place liens on the property, etc.  I would suggest that if you can not pay on the credit card that you close the account rather than default on it, ask them to modify the loan terms and make the very minimum payments that you can for the time being.  It will not pay off the card or maybe even pay it down but it can buy you some time until you can get back on your feet again.  Good luck.


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