You may have heard of the principle of “Cross-Collateralization” and have wondered to yourself, what it means in regards to your Chapter 7 bankruptcy. How does it affect my Chapter 7 bankruptcy? Cross-collateralization clauses can be found in loan agreements you may sign with a lender. For instance, if you borrowed money from a bank to purchase an asset, the loan agreement you signed may have contained a cross-collateralization clause in it, creating a cross collateralized loan.
