When a business borrower defaults on a revolving line of credit, lenders face immediate financial exposure. Unpaid advances, over-limit balances, and covenant violations can escalate quickly—especially when the borrower continues operating without repayment.
Our Texas-based debt collection attorneys represent banks, credit unions, private lenders, and alternative finance companies in enforcing secured and unsecured business lines of credit. We act quickly to stop further losses, preserve collateral, and recover outstanding balances through strategic legal action under Texas law.
A business line of credit is a revolving financing arrangement that allows a borrower to draw funds up to an approved limit and repay balances over time. Because credit can be reused, defaults often result in compounding losses if not addressed immediately.
Common line-of-credit default issues include:
Missed or late payments
Over-limit usage or unauthorized advances
Failure to replenish the credit line
Breach of financial covenants or loan terms
Misuse of funds or diversion of proceeds
Fraud, misrepresentation, or concealment of financial condition
When these issues arise, swift legal enforcement is essential.
Comprehensive File Review & Risk Analysis
We evaluate loan agreements, guaranties, UCC filings, and borrower financials.
Attorney Demand & Negotiation
We issue formal demand letters and pursue resolution while maintaining litigation leverage.
Account Freezing & Collateral Protection
When applicable, we take steps to prevent further draws and preserve secured assets.
Litigation & Judgment Enforcement
We file suit in Texas state or federal court and aggressively pursue judgments.
Post-Judgment Collection & Asset Recovery
Garnishments, levies, liens, and turnover actions are used to maximize recovery.
Specialized in Commercial Collections
We focus exclusively on business and commercial debt—not consumer collections—allowing us to address the unique risks of revolving credit facilities.
Rapid Response for Revolving Credit Defaults
Speed is critical when dealing with lines of credit. We act immediately to reduce further exposure and protect lender rights.
Experience With Complex Loan Structures
We handle multi-party guaranties, cross-collateralized credit lines, and hybrid secured/unsecured facilities.
Litigation-Ready Enforcement
If negotiation fails, we pursue legal remedies aggressively to obtain and enforce judgments.
If you are dealing with a defaulted business line of credit, early legal action can significantly improve recovery. Complete the form to contact us.
