Kim Zolciak and Kroy Biermann Face Lawsuit After Allegedly Defaulting on $300,000 Home Equity Loan

The recently reconciled couple are facing a lawsuit from a bank in Georgia.

While their divorce may have been called off, Kim Zolciak-Biermann and husband Kroy Biermann still face legal woes.

The pair are being sued after allegedly defaulting on a $300,000 home equity credit line taken out for their house in Alpharetta.

According to court documents obtained by ET, Landmark Community Bank is suing the couple, and claim that they owe a grand total of $217,443.32, and have failed to maintain their monthly payments on the loan.

The loan was originally taken out in December 2013, and the pair were expected to begin repaying the amount on the original maturity date of December 2016. However, the pair had allegedly not done so, and worked with Landmark Community Bank, in August 2017, to extend the maturity date to December of that same year. 

After a further extension, it was agreed upon that the couple would begin their repayment period in February 2018, and cough up $1,132.46 per month until their target payoff date in January 2038.

According to the lawsuit, the couple allegedly defaulted on the loan when they stopped making monthly payments as agreed upon. The lawsuit claims that the last payment was made in December 2022.

The bank subsequently "terminated the Line of Credit" back in May, and attempts to contact the couple regarding the loan and outstanding amount due were allegedly ignored or rejected.

ET has reached out to Kim and Kroy for comment on the lawsuit and alleged defaulting.

The lawsuit comes less than a week after the pair decided not to call it quits after previously filing for divorce and the news that the pair allegedly owe over $1 million in unpaid taxes.

On Friday, July 7, ET confirmed with Kroy's lawyer, Marlys Bergstrom, that both "parties are dismissing divorce action and reconciling."

Kim and Kroy filed for divorce on May 5 -- shortly after news of their financial and potential legal woes first broke -- announcing they wanted to dissolve their marriage of 11 years. 

Following the divorce filing, things got very messy between the reality TV stars. From Kroy accusing Kim of having a "compulsive" gambling problem to Kim claiming her husband is a manipulator, fans may find it hard to believe that these two are now trying to work things out.