Legal Question in Real Estate Law in Texas

my friend owes a lumber co for materials he used to build his restaurant, he got behind on payments, owes 12,000, now the lumber co is threatening to take possession of ALL of his personal property, all possessions on the property, 5th wheel trailor worth 50k, the restaurant and all contents, his Peterbilt 18 wheeler truck, personal vehicle, etc, etc...all worth far more than the 12k owes, and tie it all up in an auction situation. He now has come up with the money 12k, to pay them on the loan. Now they are threatening him by saying that he owes the 5k in their legal fees?
Can they take everything? Does he owe their legal fees along with the 12k, and if he does not pay the 5k in legal fees can they still shut him down, lock the doors and take all of his things or would this be something he can pay out?
Help please, very bad situation for him!!

Asked on 4/01/10, 9:04 pm

Cheryl Rivera Smith The Smith Law Firm

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0 attorneys agreed

You'd have to read his loan agreement to see what he pledged as collateral. They can't take what was not pledged.

Answered on 4/07/10, 6:31 am

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