Legal Question in Consumer Law in Pennsylvania

i owned a comercial bldg with the remaining balance of 220000.00...now the bank's lawyers sent me a letter asking for the payoff the balance or they will take me to court to foreclose my bldg. the reason for that was i default the loan by filed personal bankrupcy recently that was one of the clause in the business loan application.

What are my chances in court?

i did not behind my monthly mortgage at any time.


Asked on 7/21/10, 8:44 am

1 Answer from Attorneys
Rachel Hunter

What does your business loan say? Did you personally guarantee the loan? Was personal bankruptcy classified as an instance of default? I bet it was and that is why you heard from the lawyers at the bank. There must be an acceleration clause in the note that allows them to declare the full amount remaining on the loan due and payable.

Assuming that to be the case (again, I can only guess as I have not read your note), then your chances in court are ZERO. Your best bet is to find another bank who will take over the mortgage, find another buyer for the building or file a corporate chapter 11 bankruptcy which will put a stop to any loan foreclosure.

I am sorry. This does not seem fair, but that is what most likely is in the note.

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Answered on 7/22/10, 8:43 am


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