Legal Question in Credit and Debt Law in Massachusetts

Line of credit applied for

Commercial customer filled in ''10,000'' when asked on the Credit Application the ''Line of Credit Applied For''. Now the account is with a collection agency for $100K and the customer is claiming we can only sue up to $10,000.00 limit since that's all the credit they applied for. The signed Personal Guarantee however states the signer guarantees ''the payment in full of all indebtedness incurred by the above-named firm or individual as well as reimbursement of all expenses incurred...'' It's our contention that the Personal Guarantee supersedes the Line of Credit amount. Which is binding?


Asked on 11/02/05, 11:26 am

2 Answers from Attorneys
Raymond P. Bilodeau Law Office of Raymond P. Bilodeau

Re: Line of credit applied for

This is not a serious question. How many credit cards are overlimit? Do you really think our legal system would prevent them from recovering the full amount loaned plus interest and late charges, not to mention legal fees and costs?

If this is a serious question, get a lawyer. You are not competent enough to deal with this yourself.

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Answered on 11/02/05, 1:22 pm
Daniel Gindes Law Office of Daniel Gindes

Re: Line of credit applied for

I am close to certian that based on the facts stated you could recover all funds advanced based on the guarranty and the initial contract itself.

Dan

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Answered on 11/02/05, 2:26 pm


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