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Bankruptcy

: The Debt Podcast

What is a ?Dragnet Clause??

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Many debtors are unaware of “dragnet clauses,” only to find out the same after a bankruptcy is filed. Dragnet clauses are “cross-collateralization” clauses typically used by credit unions to secure other contractual obligations against collateral that didn’t exist when the original security agreement was created. Dragnet clauses are most commonly seen in car loans by credit [...]

Full post as published by The Debt Podcast on August 25, 2009 (boomark / email).

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