Legal Question in Credit and Debt Law in Texas

Unsecured Loans

Can a company collect collateral on an unsecure loan? We have a loan that was origianally a secured loan, then we refinaced it to get more money and signed on an unsecure loan. Can that company collect the collateral that was listed on the origianal loan of does the new loan, unsecure, override it?


Asked on 2/09/07, 11:22 am

2 Answers from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Unsecured Loans

Read through your contract very carefully, because the 'unsecured' loan may not be. However, if there's no mention of prior collateral, then the lack of security means they waived any claim on the collateral. That would be unusual.

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Answered on 2/09/07, 11:36 am
James Grissom Law Office of James P. Grissom

Re: Unsecured Loans

Lenders sometimes make mistakes, but are loathe to admit and still want their position protected. If they are going after your collateral, and you want my assistance, contact me by email.

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Answered on 2/09/07, 12:34 pm


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