Legal Question in Bankruptcy in Illinois

Collateral on a loan

My husband took out a loan years ago. Because of his misunderstanding of the situation, he ended up defaulting on the loan. The bank foreclosed on our house and evicted us, that happened 2 1/2 months ago. Las week they came back and took my husband's truck, all his tools that were in the truck and his backhoe. They state that these items were collateral for the loan. We have a copy of the original loan document. Nowhere on that document are any items listed as collateral. Did they have a right to take his truck and his tools (his tools are how he earns a living). Also, people who work at this bank have talked to others about our personal financial information. Isn't that against the law as well?


Asked on 10/21/05, 2:53 pm

1 Answer from Attorneys
Charles Dobra Charles Wm. Dobra, Ltd.

Re: Collateral on a loan

I don't understand why this was posted on the "bankruptcy" portion of the site, UNLESS you wish to get the further obligation which you might have discharged in bankruptcy. Of course, what the bank might repossess is limited to items listed in the documents that they have; so no one can answer your question, unless they have an opportunity to review the documents in question. I would strongly suggest that you contact a lawyer in your area for help...that's what we are for. If you don't know a lawyer in your area, contact the local bar association. GOOD LUCK!!

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Answered on 10/21/05, 6:23 pm


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