defaulting on a loan

[mdeadmon]

What is the name of your state? NC

Tried this question in another forum but no luck maybe I put it in the wrong one. about 3 years ago I bought a business and financed it thru my bank. It was a secured loan. I later sold the business for a big loss, and went to the bank and told them why I sold the business, (long story). Anyway, the loan is now unsecured (bank did this because I sold everything in the business which was collateral, which incidently would not have covered the loan by a long shot and they knew it.) My question is this: I am wondering what would happen if I quit paying on this loan. I have paid back about 2/3 of the loan if you count the interest, about 1/2 if you don;t. Any advice would be appreciated, since I am now paying on a loan for something I no longer have...

thanks
md

 

[Ladynred]

If the loan is now classified as unsecured, then what can happen is the same as if you defaulted on a credit card. The bank can sue you, get a judgment, garnish wages and sieze assets and place liens on property.