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  1. #1
    Join Date
    Sep 2019
    Posts
    6

    Default Auto Loan

    I'm in NC. I signed a loan for my son for a vehicle a year ago. I did not get the car for him because he became incarcerated. I have had to spend the money though for bills. I can no longer afford to keep paying them due to extremely high credit card debt and medical bills. What is going to happen to me if this money is not paid back can I possibly go to jail? Thanks for all your help.

  2. #2
    Join Date
    Jan 2006
    Posts
    38,728

    Default Re: Auto Loan

    Can you explain this:

    I did not get the car for him because he became incarcerated.




    So was a car purchased or not? If not, who received the money from the loan?

  3. #3
    Join Date
    Sep 2019
    Posts
    6

    Default Re: Auto Loan

    The car was never purchased. I took the monies to try and get out of debt and am still having a hard time. What will they possibly do with me? Thanks so much for responding.

  4. #4
    Join Date
    Jan 2006
    Posts
    38,728

    Default Re: Auto Loan

    if it is just a personal loan I don’t see where there would be a problem, short of being sued for the balance owed.


    if it was a secured loan for the specific purchase of a car, especially if there was to be a lien on the title, there could be some concerns of criminal issues. It could rise to the level of fraud, depending on all of the specifics. I would seriously consider consulting an attorney to review your particular issues. The details of the transaction will matter as to what possibilities there are.

  5. #5
    Join Date
    Nov 2013
    Posts
    6,428

    Default Re: Auto Loan

    Quote Quoting BYFAITH
    View Post
    I'm in NC. I signed a loan for my son for a vehicle a year ago. I did not get the car for him because he became incarcerated. I have had to spend the money though for bills. I can no longer afford to keep paying them due to extremely high credit card debt and medical bills. What is going to happen to me if this money is not paid back can I possibly go to jail? Thanks for all your help.
    You will not go to jail. We don't have debtors prisons in the US. But the loan has to be repaid whether or not you used the money to pay bills or buy the car.

    If you don't make payments to the loan, you will find yourself in default of the loan. The creditor will file suit and get a judgment against you. That could lead to garnishment of your wages, a frozen bank account or other collection activity.

    You need to make every attempt to make payments for the loan.

  6. #6
    Join Date
    Mar 2013
    Posts
    17,143

    Default Re: Auto Loan

    Quote Quoting budwad
    View Post
    That could lead to garnishment of your wages,
    North Carolina is one of those few states where the court is not permitted to issue wage garnishment orders for consumer debt.

    https://www.labor.nc.gov/workplace-r...north-carolina

  7. #7
    Join Date
    Sep 2019
    Posts
    6

    Default Re: Auto Loan

    Thanks to all you have given me advice. I guess I might have to borrow the money from my Dad. I have always like to make my own way but it seems this time I may have to borrow money. I have no other family members living. He has dementia and most of the times doesn't even know what is going on around him.

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