Legal Question in Credit and Debt Law in Alabama

line of credit default

We got a $150,000 Line of Credit to help purchase a business. At the time we rented our house to a couple that were going to purchase our house as soon as theirs sold. Enter the Real Estate collapse. They haven't sold their house and we don't have the $150,000. What can happen?


Asked on 1/23/09, 12:28 pm

1 Answer from Attorneys
John Watts Watts Law Group, P.C.

Re: line of credit default

I'm sorry you are in this situation. The bank can sue you for the 150k. Did you secure the line with your house?

I assume the business is not going well for you to make payments on the 150k?

Have you met with the bank to discuss your options?

Feel free to contact me and I'll be happy to discuss this with you.

John Watts

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Answered on 1/27/09, 8:44 am


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