secured loan

i have a loan through citi finacial
i had to use household belongings for collaterl if i surrender these items wil it then be a unsecured loan?? also what if i had already sold some of that stuff what happens then

Posted from: Manitoba

One Response to “secured loan”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

You are correct that Citifinancial has a right to those assets and you are also correct that when they have picked those assets up then they will become unsecured. As for the items you sold, you likely won’t have any problems with that, simply because even if you tell Citifinancial to come pick up the furniture they likely won’t. Citifinancial isn’t in the business of selling used furniture, simply in the business of lending money, so most times they threaten with picking up the furniture and when you tell them to come and pick it up they don’t do it. As a result they will probably never find out that any of the items pledged are no longer there.