Question

Tim's wages were garnished for the past three months as he failed to pay child support and student debt. He needs to buy a vehicle now. What will most likely happen next?

He may be approved for new credit with a low interest rate.
He may be denied future loans for a period of time.
He may be protected under the Consumer Financial Protection Bureau.
He may claim a dispute with the credit bureau about his credit report.

Answer 1

He may be denied future loans for a period of time.

Step-by-step explanation:

Tim failed to pay child support and student debt so he may be denied future loans for a period of time because he is unable to give the installments due to lower wage or income. Before providing loan, the bank check the ways through which they recover the loan amount. If there is a way that the loan can be availed due to higher income so they provide loans otherwise can't provide loans to the client.