If I own a car that is worth $5000 and I have a lien placed on it from a collection agency that I owe $10,000 to, can another lien be placed on my car from a second company that has a judgement against me?? Just how many liens can be placed on a car?
How do you know it is worth $5000 to start with? If that is the price you paid for it then the horrible truth is that its wholesale value is about $1500. Its auction value might be even less than that. So about $1500 is what the CA could get out of it on a quick sale. If you owe money on the car and they actually took it they would have to pay the lender all that you owe before they could hope to get a dime out of it. I realize you would get more out of it as a trade in (or at least a dealer would make you think you were getting more out of it) and you could probably get more out of it selling it to a private party. But to answer your question about how many liens can be placed against the vehicle my guess is that there is no limit to how many liens it can have on it. I suppose that may depend on state law as well. Many states won't allow a debt collector to seize the only vehicle you have. In the final analysis you may have to drive it until it is a junk pile then set it up and let them seize it if they want to. If they don't grab it within a couple of years after it has become a junk pile you can usually sell it to a scrap yard and go get another vehicle someplace. Or you can put it out on the curb with no tags on it and let the cops impound it. If it ends up as a junk pile call up the CA and tell him to come and get it. If he won't and you can't sell it to a scrap yard without a title you can always use a reciprocating saw and cut it up and let somebody haul away. You can sell the motor and transmission for junk price. If it is an aluminum block you can get a much better price. A Dewalt reciprocating saw can cut a car in half much faster than you might think. I saw a demonstration at a Home Depot a few years back. They used a 24 volt Dewalt cordless and cut a car completely in half in 2 minutes 3 seconds. They cut it right behind the door posts. You could probably cut it lengthwise in about 5 minutes or so. Then load it on a truck or a trailer and off to the junk yard, no title needed. But so long as that lien is on it you won't be able to use it as a trade in nor sell it to anybody.
"How do you know it is worth $5000 to start with? If that is the price you paid for it then the horrible truth is that its wholesale value is about $1500" That price of the car is NOT what this is all about, Friend. The question is if more than one CA can have a lien on a car no matter what the value of the car is.
"Many states won't allow a debt collector to seize the only vehicle you have" Well, I live in Michigan and my $5000 car, which is my ONLY car, has a lien on it. Im now worried that other liens will follow. So I guess in Michgan they can place a lien on your only car.
sure they can place a lien on your only car, most states they cant take your only vehicle to sell for payment of the debt. most ca's wouldnt do that even if they could due to how expensive it is to have it seized and towed and stored and sold.
What if I was to open a business and it was an LLC. I then register my car as belonging to that business. Could they place a lien on that car?
Im talking about the next car I purchase. Can i sheild that car from a lien if it becomes a business asset of an LLC and is registered under the business?
Unless you pay cash for a car the title will have a lien on it.The first lien holder holds all rights to that vehicle.Most vehicles are worth less then what is owed on it.So what good would it do getting a 2nd or 3rd lien placed on such a vehicle?
car cant be sold with liens on it...the debtor is stuck with that car, and paying for it until all liens are satisfied.
My point is that its a waist of time.Dont you have some debtors to harass.Get to work and stop waisting your employers time.You can't make any money here.
