Legal Question in Credit and Debt Law in Illinois

secure and nonsecured debt

How does the law interpret the difference between these two? I mean say you got a secured loan or credit card-you would naturally be agreeing to collateral based on default-right? So what makes it legal for a debt collector levying against your home, wages, etc.? Didn't the original creditor agree to give you credit based on collateral?


Asked on 12/21/05, 11:29 am

1 Answer from Attorneys
Kevin Plachta The Law Office of Kevin F. Plachta

Re: secure and nonsecured debt

If you have a secured loan and you default then the original creditor should take action to secure the collateral, however lets assume that the collateral does not exist anymore, is being hidden, is lost, has been sold, is worthless then the creditor has to enforce the judgment somehow and that somehow is by garnishing wages, bank accounts, putting liens on property and if necessary selling property at a judicial sale.

Read more
Answered on 12/21/05, 4:23 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in Illinois