Legal Question in Credit and Debt Law in California

Business Loan Verbal Application

My wife took out a bank business loan back in 2003. A verbal application was taken over the phone on Dec. 31, 2002. Since then we hav struggled to pay them back as agreed in the terms due to medical issues. However we have paid them consistantly. They are now calling the loan in full and want the total amount paid. They are threatening law suit and wage garnishment. They sent us a recording of the verbal application as we requested. Is this still inforceable? Is the verbal ''personal guarantee'' still inforeable on this business loan? The last payment made was about 2 months ago. Can we fight this or is bankruptcy our only recourse? The loan was taken out in California, but we now live in Indiana. If that makes any difference.

Thank you


Asked on 7/09/08, 12:04 am

1 Answer from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Business Loan Verbal Application

Whether bankruptcy is your best option would be up to the bankruptcy lawyers in your locality. Based on what you've said, they appear to have a valid lawsuit -- assuming there is no defense available to you under Indiana law, of which I plead ignorance.

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Answered on 7/09/08, 12:09 am


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