Legal Question in Credit and Debt Law in Virginia

My husband and I had a unsecured line of credit with a bank. We had it for five years and then it went into a repayment period. The bank tried aggressively to get us to come down to sign a new contract at that time. We thought it was crazy to do that since it specifically stated it in the original contract. The bank even went as far as wanting us to get my husbands aunt to put her house up for it. We refused to sign anything and it was eventually let go and we found out the man that gave us the contract was let go from the bank.We have always paid our payments and never missed. My husband was laid off from the railroad and times were tough. Last year we had some trouble making the payments for a couple of months and we received a letter stating how much was behind and they were demanding the full payment of $21,000. I went down to the bank to make a payment after we finally received payment from a side job my husband did and they stated they could not accept a payment because it was wrote off. Almost a year later after no correspondence from the bank we receive a warrant in debt. What should we do?


Asked on 8/09/15, 8:22 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Once the balance was accelerated and due in full due to the default, provided the bank provided the required notices and allowed any rights to cure in the loan documents, the loan became fully due and they had the right to reject partial payments. (It may have been stupid for them to do that, to turn a performing loan that would have been paid in full into a defaulted loan, but that is their business). So you probably do owe the whole balance. And since the statute of limitations is probably 5 or 6 years, the lawsuit at this time is not improper. You may be able to reach a settlement with their lawyer, but if you don't have the ability to pay, you may want to consult with a bankruptcy lawyer.

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Answered on 8/10/15, 4:32 am


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