Business lines of credit secured personally
In year 2000 we negotiated a business line of credit, things were going great for 1.5 years with one account manager.
Because of restructure within the bank – our account was passed over to more than 6 different managers within a 6 month period.
the last manager informed us that the original manager had made a mistake and shouldn’t have financed us – we were shocked – as we had maintained our payments and had reduced our debt to equity ratios.
At the same time – the new manager insisted that we sign paperwork to use our house as security – as the first manager had not done so. How legitimate are these documents after the fact – our backs were against the wall – and we had to sign the paperwork in order to continue to run the business. (later they froze our account until our loc was reduced by $40,000 with only 3 days warning) as a result – we’ve been struggling and were forced to close the business.
Question – we have now closed the busines and are going to bankrupt it. Could the documents that we were forced to sign afterwards – using our house as security for the loan be challenged??
You’re asking a question that is best answered by a lawyer – not a trustee. We can’t offer legal advice and that is what you need.
Sorry, but you need to call a lawyer.