Judgment Creditor Seizing A Car

Hi, I have a question. Let's say that a credit card company sued me for $12,000 and won a judgment against me in Arizona. Arizona law provides an Exemption of $5000 for one vehicle. Now, let's say that I have a car worth about $13,000 according to Kelly Blue Book values, and I owe about $14,900 for the car to a different car loan company. What would happen if the judgment creditor tried to seize the car and sell it at auction? Wouldn't they have to pay off the loan on the car before they could sell it at auction? Doesn't the car loan company have a security interest in the vehicle? What if they couldn't get a bid that was high enough to pay off what was owed on the car? What would happen then?

[Judge Roy Bean]

Originally Posted by Kipsy

Hi, I have a question. Let's say that a credit card company sued me for $12,000 and won a judgment against me in Arizona. Arizona law provides an Exemption of $5000 for one vehicle. Now, let's say that I have a car worth about $13,000 according to Kelly Blue Book values, and I owe about $14,900 for the car to a different car loan company. What would happen if the judgment creditor tried to seize the car and sell it at auction?....

This isn't legal advice, and I have no first-hand experience with Arizona case law, but in all of the states I'm aware of, they can't obtain a court order to seize a car if you don't own it outright (hold an unencumberred title to it).

[charlesa6]

Yep! if they don't hold the title on the car, they have no right to claim or seize it.