Legal Question in Credit and Debt Law in California

Re: Bank Loan Verbal Application

As a practical matter, you may have to fight this in California, or it could be that the loan was made by an out-of-state lender, and the agreement contains a choice of venue clause which designates another state. You are 100% positive that your wife never received a written agreement to sign? Its extremely unusual to not have had a written agreement on a bank loan, though not uncommon for debt such as credit cards - the absence of a written agreement isn't necessarily going to keep them from being able to collect the debt. Demand copies of any and all documents from the bank, inlcuding all notices of terms, etc... Its extremely unlikely that you will be able to fight this in your home state, and therefore, where ever venue is proper, its going to cost you a pretty decent amount of money to fight it. Without further review, its impossible for anyone to give you a firm "yes or no" as to the likelyhood that you could defend their collection efforts. There are a lot of factors to consider, including the terms of the loan, the amount of the loan, whether you had other loans or credit issued by that same bank, where the bank is located. I'd suggest starting with a consultation with a California attorney first, then go from there.

If you aren't willing or able to spend the money to defend the suit in (very likely) California, then you should consult with a local bankruptcy attorney.

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