Antonoplos & Associates Attorneys at Law have been retained to advise and act for community lenders, national banks, borrowers, or grantors in disputes relating to lending or borrowing.
When banks or other lending institutions lend large sums of money, this loan is usually secured against assets that the borrower already owns. Furthermore, the purposes of lending and borrowing money are diverse. One may look to borrow money for a commercial or personal project or need capital to purchase a single item or finance an entire project. However, in other situations, one may seek a loan simply to assist with cash flow or pay off current smaller debts. Loan disputes that most commonly lead to litigation include project financing, debt financing, bridging loans, land loans, and construction loans. Because of the wide range of scenarios that may necessitate lending and borrowing, it is vital that you receive legal representation from a loan litigation lawyer that has experience in both loan litigation and the area of law that best matches up with why you took out the loan.
Secured and Unsecured Lending Litigation
Mortgage lending that a borrower secures on the asset that was purchased or improved from the loan is one of the most common causes of loan disputes. Furthermore, knowledge of rights, remedies, including priorities, and the relative advantages and disadvantages of procedural steps is important when considering how to enforce and recover a debt. In most cases, mortgages are legal and registered. However, what makes this process extremely complex is that courts have recognized unregistered or equitable mortgages. No matter which category your loan falls into, the chance of insolvency when a loan is secured raises many potential legal issues.
Commercial and Personal Lending
Lending is not a practice that only commercial or business entities can use. In many cases, family or close friends will agree to give someone a loan whether it be for a car, to pay off existing debt, or to start a business. In certain cases, the law of gift and presumptions of advancement will govern loans of this kind. One common problem with these types of loans is that the informality and lack of independent legal advice will negatively affect the rights and possible legal remedies of both parties involved in this transaction. In cases where someone is seeking a personal loan from a registered lending institution or business, the lender will offer the loan as a line of credit or mortgage.
Investment, Loan, and Gift Disputes
When the due date for payment of what one party considers a loan becomes due, the party who receives the capital will sometimes state that the arrangement was not a loan but rather a gift, investment, or purchase that they did not intend to be repaid. At Antonoplos & Associates, our group of loan litigation lawyers will help you collect evidence proving that the transaction you entered into was a loan, gift, investment, or purchase. If there is a dispute concerning whether the money that transfers between the parties must be paid back, it is vital that you obtain legal advice as soon as possible. The reason for this is that any correspondence between the alleged lender, alleged borrower, alleged investor, or alleged donor or recipient of a gift would very well affect the rights and obligations of the parties.
Whether you are lending or borrowing money, it is crucial that you understand the limitation period that applies to the loan and the rights and remedies that someone may use when a loan is not paid on time or at all. In certain cases, there is a short period of time where one can bring a claim forth before the recognition and recovery of the loan is lost. Thus, it is extremely important to receive legal advice soon after the payment date of the loan has passed.
Common Issues in Loan Litigation
In many cases, the lending or advance of money may be only a portion of a larger transaction that has an impact on a loan agreement or promissory note. Furthermore, what is a loan by one party may be a gift or purchase by the other party and thus, does not have to be paid back. Thus, the liability or release from liability is a common dispute that commonly leads to litigation. Additionally, we have worked with clients where the settlement, assignment, and forgiving of loans has been the subject of the litigation. Other common causes of loan litigation that our firm has encountered include:
- Statutory regulation of lending and credit
- Interest: legality, rate, and calculation
- Money paid to third parties
- Implied promises to pay
- Borrowers not personally liable to pay
- Onus and presumption of advancement
- Timing of contractual obligation of payment
- Void and Illegal loans
- Discharge of Guarantors
- Gift or Loan
At Antonoplos & Associates, we can serve your needs by acting for you or advising you on loan disputes that require you to seek or respond to urgent equitable remedies. Urgent action may be necessary for a variety of situations but is most commonly sought when there is an immediate risk of the dissipation of a borrower or debtor’s assets, including the sums lent, which would cause irreparable harm to the lender. Because of the importance of this, it is critical to hire a loan litigation lawyer to review your case.
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