Legal Question in Credit and Debt Law in Illinois

credit card defaults effecting new car loan

A friend of mine with a Meth addiction has defaulted on many credit cards. Owes a total of over $10,000 and maybe $20,000 to many different credit cards he simply stopped paying. The high would be around $2500.00. Collection agencies have been trying to get a hold of him for years and now seem to have stopped or slowed to nothing. He had no address they can trace or phone number until recently. He has no money. He now has a cell phone in his name and the car loan will also show his address. He now wants to buy a car so he can work. How will the old debt be handled in regards to a new car loan? Is he at risk for reposession? How does the bank handle this if they give loan for new car?


Asked on 2/18/06, 3:44 pm

1 Answer from Attorneys
Kevin Plachta The Law Office of Kevin F. Plachta

Re: credit card defaults effecting new car loan

If your friend has defaulted on 25 grand worth of credit cards I find it very hard to believe that anyone will give him a loan for an auto. If by chance someone does give him a loan its going to be for a about 25-30 percent interest.

Since your friend has an addiction problem then the work issue is always going to be a problem. So my question is how is your friend going to afford the car?

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Answered on 2/21/06, 11:11 am


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