if we default on a commercial loan at our bank that is secured can they reposses our home

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if we default on a commercial loan at our bank that is secured can they reposses our home

we have a semi truck for business loan. we can not make it is the trucking
business in the state of illinois anymore. we may have to default the the loan
that is secured by a tractor, the semi tractor and a ranger. can the bank go
after our home, car, or any other assets we have and also wages

Asked on July 4, 2019 under Business Law, Illinois

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

Who took out the loan: you personally, or an LLC or corporation? If it was you personally, or if it was taken out by an LLC or corporation but you personally guaranted it, then you are personally liable on the loan. That means that if the securted equipment is repossesed and sold at auction but does not bring in enough to fully pay the debt/loan (after first paying any costs of sale), the lender can go after you personally; if they sue you and win and you still don't pay, they could then try to put a lien on your home or execute on your car (have the sheriff seize and sell it); they could also look to garnish your wages.
If the loan was taken out by an LLC or corporaton and not personally guaranteed, then you personally and your personal assets are not at risk: only the LLC or corporation is liable to pay. 
If the auction of the secured assets fully pays the outstanding balance, then since the lender wlll have been paid, it cannot go after anything else.


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