What happens to me if I am unable to finish paying for my pool loan?

UPDATED: Mar 15, 2012

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What happens to me if I am unable to finish paying for my pool loan?

I am looking to purchase an inground pool which is going to cost me about $25,000. The problem is that there is a possibility that my job may merge with another company in another year or so. If that happens, I could be out of a job. What would happen to my loan, my credit and my house? I just need to know what the ramifications are behind not being able to pay back the amount of the loan.

Asked on March 15, 2012 under Bankruptcy Law, Arizona


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

1) You could be sued by the lender for the return of the money, if you default on the loan and do not pay it as per the loan's terms. Once you default, they can sue to get all the money at once--they are not limited to suing only for the payments you've missed.

2) If they sue you and win--which they likely will, in the case you describe--and you still don't pay, they may do one or more of the following: a) put a lien on your house; b) garnish your wages; 3) execute on personal property (e.g. have vehicles, televisions, etc. seized and sold); 4) levy on a bank account (have money taken out of your account).

3) They can pursue any other rights the loan agreement gives them--that is, for example, if any property was put up as security or collateral, it could be repossessed or foreclosed.

4) Your credit history/rating will be badly damaged, which could impact getting another job (some employers look at candiate credit history). The amount of damage will probably be around 200+ points off your rating. (It's hard to say for sure; the rating agencies keep their formulas very close to their vests.)

In short, if you fear losing your job, do not take out a significant loan.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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