[healthkicks]

If a bank places a judgement on a loan, where the merchandise is returned, sold, and there is still a balance due (that is too much to handle ), is the only solution bankruptsy? The bank does not seem willing to lower payments, and I am staying about 2 - 3 months behind on the note.

[mr.yet]

A bank cannot place a judgment, only the court can. They must file suit to obtain a judgment.

Is this a balance due after the items return to whom?

[healthkicks]

This is from a business loan for equipment. Original amount around 36K, now at 29K ( much late fees, etc. ). Never could get caught up. Business is still going, but on a much reduced scale. The bank has taken money out of my acccount to make payments on the loan several times, causing me multiple NSF checks ( they did not cover ), plus $1000s in fees now.
I can't pay the high monthly payment, and am behind on current loan. They would get the equipment, sell it, then apply it to the balance.

[mr.yet]

The Bank can Reposses the equipment and sell it at auction most likely, you would still be accountable for the balance due after the sale.

Do they have a lien on the equipment?

It's sound like they will take you to court if you done pay the loan up-to-date soon.