What if you’re a judgment enforcer, which had a $2,000 judgment designated for you? Let’s say your debtor declined to pay for, and also you then planned to apply your writ of execution to set up a levy of the debtor’s vehicle, that you simply think may be worth $3,000?
One of several judgment articles: I’m not an attorney, and this information is my estimation according to my experience, please meet with a lawyer if you want legal counsel.
Anybody intending to levy their judgment debtor’s vehicle ought to know if it’s leased, or exactly what the lien and/or loan status is. All vehicle deals rely on any prior financial loans and liens, so let us assume the debtor’s vehicle is taken care of.
What if one makes a deal for your debtor (or they create a deal for you), to consider their vehicle as full compensation for (and gratification of) their judgment when they sign over their vehicle possession title for you.
An offer similar to this, differs from should you have had the sheriff seize their vehicle then sell it in an auction purchase, because in a sheriff’s purchase you would need to give anything remaining the judgment debt amount, to your debtor.
Using the vehicle deal, would you then pay your Original Judgment Creditor (OJC) $1,000 (according to your 50/50 split contract), sell the vehicle for $3,000, and obtain an additional $1,000 profit?
Yes, judgment enforcers frequently make discounted prices. That you can do anything (that’s legal) that you would like. In case your debtor would like to sign their vehicle to you, that’s fine. Your main obligation for your OJC is exactly what both of you decided to, inside your purchase agreement.
Should you accept the automobile as payment entirely for that $2,000 judgment, the OJC could be titled for their $1,000, and you should file a satisfaction of judgment to the court. In the event you and then sell your automobile, you’ve honored your contracts with the OJC and also the debtor. Hopefully, you’ll make a large profit.
However, if the market on automobiles be lower and you may only sell the automobile for $1,500, you have to still file the satisfaction for that debtor, and spend the money for OJC their $1,000. You made the decision the automobile was worth $3,000, which is not the OJC’s fault you simply got $1,500, and you’ll make only $500.
To sum up, it’s your vehicle, which means you gain or lose around the ultimate purchase date. The purchase date is not related to your agreement together with your debtor, or perhaps your agreement using the OJC. They are three separate and distinct transactions.
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