When is a loan considered in default?

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BigDaddyJinx

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Hello. I took out a consolidation loan with the Citifinancial this time last year. At the time I was employed and making enough money to pay the monthly sum. Due to unforeseen circumstances that no one could see coming, I was now out of a job shortly thereafter. I've been making payments to them myself and through the insurance policy I had with my loan, but now I'm unable to make the payments each month but for a meagre amount. They told me this is not acceptable and that I needed to pay the full amount before the end of the month as they can't carry a past due balance to the next month (seems absurd in my mind).

I told them flatly that this was the best I could do for the immediate short term, but they wanted some kind of commitment. I told them I can't commit to anything I don't have information for. I then told them to do what they had to do.

Now in my mind, I'm still trying to make whatever payments I can afford for now, with the hopes that I'll be able to get back on board and level sooner than later. I don't have a timeframe though.

So my question is, at what point would my loan be considered in default seeing as how they told me that they can't carry a past due amount from one month to the next?

I've had some tell me that as long as I'm paying "something" to them, that I can't be put in or considered in default. Others have told me that unless I pay them the full amount I am in default. So I have it from both sides. If I'm trying to make "some" kind of financial contribution towards my money owed, can they declare me in default?

And what happens if they do? How long does this take? Do I get served or put to collections or is there some other things I should/could expect?

Thanks for anyone who can gimme some idea.
 
If you didn't pay the amount due on your loan when due, you're in default. If there is a call for written notice, you may not technically be in default. Moreso, the bank could agree to waive the default if you pay something. Perhaps it would help to get that in writing. But if you can't make the payments, then all of this is moot. They will eventually declare you in default to protect themselves and file against you to get as much of their money back as possible - or so it would seem.
 
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