Will creditor take car if title is in both names?

[rogue22]

I had a judgment placed against me from a credit card company recently.

We own a car thats worth about $7000 and its titled in both (husband and wife) of our names with "OR" (john doe OR mary doe). It also has a $600 lien on it from a loan we took out on it to pay for a medical service back in Feb.

So from my understanding, I get $1000 credit towards the car and I can also use some of my $4000 personal property credit to apply to the car as well? Is this true?

Next question, since the title has both of our names and the judgment is only against me, would the creditor have to pay my spouse half of the value of the car if they decided to take the car?

I'm hoping this is all true and they wont think its even work their time to go through the procedures of trying to get the car since it has a lien and spouse owns the half of the car... plus the costs of hiring a tow truck and auction fees.

Please inform me if im wrong about this.. I live in Florida

[shark66]

Way too complicated for them to make any money on it.

I'd bet that the car is safe.

My $0.02 only...

Good luck.

[DYLAN150]

Your car may be listed on Kelly blue book for 7K but no one know's how much it might be worth at an auction. Creditors want cash like your bank account or to garnished your pay. Also in taking your car there is a host of fee's involed like towing, storing, sheriff's fee's, your exemptions, pay off lien and so on.

[treehugger1]

I have to agree. The judgment creditor/CA/JDB has to go through many hoops, and they must satisfy your exemption if you are on top of your local/state laws. I will say that in my area it is not unusual for local creditors and local CA's to go after vehicles. But I don't don't see many national judgment creditors going after vehicles; especially those that are not owned outright by the debtor. Who wants to be a second lienholder on a used vehicle?

[JackBondLove]

How can an unsecured creditor take a car? I could see getting an attachment, such that if the car were to get sold, the creditor would get paid (which is easily remedied by simply driving the car until the wheels fall off!)

[treehugger1]

As mentioned, it is unlikely that an unsecured creditor will take you car. However, there have been several instances in my local area where this has happened. The judgment creditor/CA recognizes you have a vehicle that is probably worth more than your exemptions. They have the car seized and work with the first lienholder to get them paid off. Whatever is left goes back to you if its within your exemption amount. The judgment creditor/CA gets the remainder. While this is very unlikely, it does happen. A few years back a poster posted that a similar scenario went down with them. In addition, some of the costs of the seizure and sales were subtracted from the exempted monies. I see very weird crap like this in my local courts where the local CA's sue.

I have never ever seen a judgment debtor exam for some national size CC or unsecured creditor in my county. I'm sure it may happen, but it is extremely rare. I have seen many debtor examinations conducted by our Local CA's for local judgment creditors. The local CA's are far more aggressive. I think this is because they can work the small claims court without an attorney.

[DebtHater]

As others have said I don't think the creditor could outright take the car. The lien is placed on it in the event you sell it. Regardless of who's names or if it's "and" or "or" the lien holder will get their money before you do. Being your car is worth $7,000 and assuming you got that much for it if you sold it, the med service would get their $600 before the title can be released. This is based on there is no loan for the car. If there is a current loan on the car then that lender has to get their money too.

[catleg]

I would also suspect that while the car's ownership and lienholders is public record, the AMOUNT of the lien is not, therefore making a repo less likely.

[DYLAN150]

Cat: Wouldn't the pay off to the loan be listed on the credit reports?

[frogger]

I would also suspect that while the car's ownership and lienholders is public record, the AMOUNT of the lien is not, therefore making a repo less likely.

The original amount of the lien is available. It's not "public" record, but is available by subscription.

[catleg]

Yeah, I guess it would be on credit reports. Point well taken.

[Bell30656]

First, I believe that you are overvaluing your vehicle. Surf on over and use the Autotrader vehicle trade in calculator or run on down to Carmax to get an actual offer. I'm not a scholar on Florida Law but it appears that they can. Will they? Most likely not. Florida also seems to have a pretty simple procedure for putting a lien upon a vehicle when you have a judgement. It may be time for your wife to be sole owner of your vehicle. A lot depends on who the judgement holder is. Big companies don't want to own a few cars they have to liquidate. A small town JDB on the other hand? Maybe.

[rogue22]

Thank you for everyones responses.

The current lien from the medical expense was actually a private loan from another family member that requested we add his lien until the car was paid off. Originally $700 owed, now $600. The DMV did not want any info on what the lien was for or how much so the value of it wont be listed on any credit report.

I believe am over valuing the car when consider its auction value, recovery fee, storage fee, lien payoff, etc. Auction value may only be 4000 and then minus all the fees and lien payoff, at most they might only profit $1000?.. probably not worth it.

The judgment is from a creditor attorney located in another county (2 hours away) for a bank of america loan/credit that we had.

We plan on filing bankruptcy in October so I just need to delay it till then atleast

To that last response, Bell30656, I believe taking my name off of the title would be considered fraud when facing a judgment or even bankruptcy.

[rogue22]

If they just added a second lien to the car then that would be fine.. when i file BK that would go away anyways. They do know that the value of the 1st lien is only $600 because I had to send them paperwork on all properties that I own and their value/financing.

My concern is that the car is the only thing they could collect on since I will be filing head of household status protecting my paychecks 100% and bank accounts for 6 months. Personal property isnt much at all, so really the car is the only thing that has any real value. So i fear that they may get the car even if they know they will only get $1000 because thats all they will get from me period.

[Bell30656]

Rogue, you could be right and may want to ask an attorney. However, each state has different laws. Your wife may see it as protecting her asset. You could sell her, your share in the vehicle. Then keep receipts showing that you used the proceeds to pay utilities, house payments, rent, whatever. The lien on the vehicle in this case is a help. Due to the fact that the loan isn't on the credit report but the lien is on the title. I think you are okay on that aspect of it. I don't believe a judgement holder would attempt to seize the vehicle knowing that he/she would have to surrender it to the lien holder leaving them out of pocket expenses with nothing to show for it. You could receive a notice from the court requiring you to prove your assets. This is common, a debtors examination.