Full question:
My question disappeared that I had written up, so I am trying again.My son, age 28 now had a car voluntarily repossessed about 18 months ago when his marriage fell apart. He ended up owing an additional $7300 after auction. He also has a $1300 collections agency for Verizon on his credit rating. In trying to see if he could get a loan for an inexpensive used car, he was turned down. If he could manage to get a loan, would either of the two places that he owes money be able to put a lien on the car so that he would lose it too or actually be able to just come and take it away. If they put a lien on it what would that mean?
- Category: Judgment Liens
- Date:
- State: Nebraska
Answer:
If creditors obtain a court judgment for the unpaid debts, they can create a lien on any property your son owns, including a vehicle. This lien allows them to sell the property to satisfy the debt. If there is already a lien on the vehicle from the lender who financed it, that lender will be paid first from any sale proceeds, and any subsequent liens will be paid from what remains.
A judgment lien is established when a court grants a creditor an interest in the debtor's property based on a judgment. If the judgment is unpaid, the creditor can ask the court to place a lien on the debtor's property, such as bank accounts or real estate, to secure payment. The next step may involve selling the property to satisfy the judgment debt.
Additionally, a judgment creditor can request wage garnishment, which is a legal process where a portion of the debtor's earnings is withheld by their employer to pay the debt. This process is regulated by state law and varies by state. Certain types of income, like social security and child support, are generally exempt from garnishment.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.