A man who is now living in Jackson, Tennessee, is fighting in court to keep from having to pay around $1.3 million for a loan that he took out for $800,000. He took that business loan out before the recession, using it to help his trucking company, but he had to declare bankruptcy when the economy declined.
Now, the lender is trying to get that money back, saying he did not pay on the initial $800,000. The lender, which is Transportation Alliance Bank, Inc., also said that he now owed more than $900,000 on the loan, and that other fees brought it up to a total nearing $1.3 million.
The man, however, says that he did make his payments for as long as he could, before the recession.
He has also taken things a step further and decided to sue the lender, along with a few connected businesses. He filed that lawsuit in Tennessee, and it claims that they used both racketeering and fraud. According to the former business owner, they took over too much control regarding his line of credit, his insurance, his access to fuel, and a few other key parts of the business.
Because of this, he has actually said that the lender caused him to go bankrupt. On those grounds, he does not want to pay the amount that they are asking for.
If you’re thinking of declaring bankruptcy, it’s important to know exactly what debt it can discharge and how financial issues may be handled in the future, even after the filing process is over and you have tried to put things behind you.
Source: Daily Comet, “Former Houma resident ordered to pay $900,000 settlement,” Maki Somosot, June 09, 2015