Legal Question in Business Law in Illinois

tractor trailer truck loan

one year ago a friend wanted to start a trucking business. My husband and I went in as silent parteners. Our friend has horrible credit we have excellent credit. So we decided to take the loans for 3 tractor trailers. Well our friend ran the business to the ground we never got a dime. We are left with and $85,000.00 loan that we have been stuck paying off plus a charge card he used as a gas card. Since his credit is so bad he can't take the loan from us and he can't pay it. Because we don't want our credit we worked hard to keep ruined we are straining trying to pay this loan. Is there a way to get this loan on him with his bad credit. We can't afford this. We never got a dime from this business now we are stuck paying out $85,000.00


Asked on 9/26/07, 10:45 am

1 Answer from Attorneys
David K. Staub Staub Anderson LLC

Re: tractor trailer truck loan

In a word, no.

Unfortunately, when you borrowed the money, the lender was looking to your credit worthiness. They loaned the money to you, not your partner, because they believed that you would repay the loan. At this point, they are not going to switch the loans over to someone who is very likely going to have difficulty in paying off the loans.

If this loan was structured in a way that the tractor trailers are collateral for the loans, you may at least be able to step into the position of the lender and take title to the assets. While that may not cover your $85,000, it could help reduce the amount of your loss.

You need to talk to a lawyer and show him all of the documents.

David K. Staub, an Illinois business attorney

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Answered on 9/26/07, 10:56 am


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