What are repurcussions on loan default?

What are repurcussions on loan default?
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1 Answer

Answer :

There are many repercussions for defaulting on a student loan. The government will get its money back by garnishing your wages, tax refunds, or any social security benefits. These are serious actions and it is better to work with the loan companies if you can not make payments.
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Related questions

How can there be enough money to pay for credit default insurance if the general rate of interest is too low to cover the risk of the loan?

Description : How can there be enough money to pay for credit default insurance if the general rate of interest is too low to cover the risk of the loan?

Last Answer : It has to do with fractional reserve banking and the extensive money (whatever that is) which is created by selling debt. Debt multiplies money held in reserves. The actual worthless paper dollars ... but I imagine their debt is insured by the same companies as the bank. Companies like AIG.

If I default on my personal loan agreement, can they repossess my collateral?

Description : If I default on my personal loan agreement, can they repossess my collateral?

Last Answer : Your property can be subject to repossession if you default on a loan. This can be the case if you put up part of your collateral as a guarantee for your loan.

Can I go to jail for student loan default?

Description : Can I go to jail for student loan default?

Last Answer : d Debtor's prison in the United StNo, you won't go to jail for defaulting on student loans. A act calleates was outlawed in about 1833 which protects you from this. Now if there is fraud ... are having hardship and they will forego the loan for a couple years until you are financially stable again.

The unpaid principal balance of a loan on property divided by the asset‟s appraised value is termed as ______ A. Liquidity Adjustment Facility B. Loss Given Default(LGD) C. Loan to Value(LTV) D. Long term liabilities

Description : The unpaid principal balance of a loan on property divided by the asset‟s appraised value is termed as ______ A. Liquidity Adjustment Facility B. Loss Given Default(LGD) C. Loan to Value(LTV) D. Long term liabilities

Last Answer : C. Loan to Value(LTV) Explanation: The loan-to-value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. The term is ... to represent the ratio of the first mortgage lien as a percentage of the total appraised value of real property.