Legal Question in Bankruptcy in Maryland

cross collateral clause

in 1997 my wife and i filed ch.7 bankruptcy .with one of the creditors we had 2 accounts,one was a car loan wich was not included,and the other apersonal loan wich was included,well in january we paid off the car loan ,and they are refusing to release the lein unless we pay the other loan off that was included in the bankruptcy saying the personal loan had a''cross collateral clause''how is this legal if a judge discharged that personal loan under chapter 7 bankruptcy?


Asked on 8/06/01, 4:51 pm

1 Answer from Attorneys
Lawrence Holzman Holzman Law Firm, LLC

Re: cross collateral clause

If the facts that you have stated are accurate(i.e. that the personal loan was cross-collateralized) then the bank may be correct. You should have an attorney review the bank documents carefully to determine your rights. Unfortunatley, it could be true that the lien survives intact even though you have been relieved of any personal liability for the debt.

Lawrence R. Holzman, Esquire

Joseph, Greenwald & Laake, P.A.

6404 Ivy Lane, Suite 400

Greenbelt, MD 20770

(301) 220-2200

fax (301) 220-1214

Disclaimer: Please note that the posting of this response is not intended to constitute legal advice. You should contact an attorney to obtain information applicable to your situation. This posting is not confidential or privileged and does not create an attorney/client relationship.

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Answered on 8/07/01, 2:12 pm


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