Legal Question in Credit and Debt Law in South Carolina

Re: loan problem

It's impossible to say for sure, with respect to your situation, exactly what the outcome would be without looking at every document you did get (the check, the notice that came with it, etc). However, as a general rule, in order to be properly collateralized, a creditor has to specifically identify the property that's been attached. If the first loan specifically identified documents, and the second loan did not, but the first loan has been paid off, then there should be no carryover of collateral from the first to the second. But there could well be a situation where the documents *do* give the creditor collateral rights in after-acquired property. It just depends - and it's impossible to say without, again, looking at *all* the documents, both for the first loan and the second. You need to speak to an attorney, and let her look at the documents to give you a definite answer. Good luck!