QUESTION
Who has the right of ownership to the vehicle?
Asked on Jul 30th, 2013 on Bankruptcy - New Jersey
More details to this question:
2 people cosign loan from bank for 1 person to purchase vehicle # 1 person responsible for payments and has possession of vehicle during a time # 1 is without a job # 2 made approx 3 payments on note at different time of the year. # 2 suddenly decided to pay off the loan without telling # 1 and without the knowledge of # 1 - both #1 & #2 names are on the title so neither one call sell the vehicle BUT #2 is demanded that #1 turn the vehicle over to them. # 1 has possession and his name is no longer on any note due - can # 2 take the vehicle - they do not have a lien on the vehicle except with the original loan that has been paid and lien should be released.
3 ANSWERS
Debt Collection Attorney serving Chicago, IL
Partner at
Edelman, Combs, Latturner & Goodwin, LLC
2 Awards
1. I would not suggest self-help taking of vehicle without court order. 2. It is difficult to tell what interests were intended or exist as a matter of law. A reasonable resolution is that #1 gets vehicle if he reimburses #2 for amounts paid, possibly with interest. If he cannot reimburse, sell the car and distribute the proceeds in that manner. Alternatively, #2 gets car upon paying #1 the payments he made. If the parties cannot agree the only way to resolve the matter is a lawsuit naming #1 and #2 and asking court to order disposition of the vehicle and distribution of the proceeds. The cost involved and the low prices obtained at forced sales would strongly suggest that the parties ought to agree.
Answered on Jul 31st, 2013 at 8:29 PM
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
Update Your Profile
Both parties have a right to the vehicle and its use due to the co-ownership. If they cannot agree the court will have to decide and force the partition.
Answered on Jul 31st, 2013 at 3:03 PM
General Law Attorney serving Cherry Hill, NJ
at
Mark S. Cherry, Attorney at Law, PC
Update Your Profile
Each has a right to possession. If either wants exclusive possession they must purchase it from the other or file a "partition" lawsuit with the court.
Answered on Jul 31st, 2013 at 12:55 PM