Cosigner on my car loan has judgment against him. Can my auto be seized?

by Linda
(Austin, TX)

My dad cosigned my car loan, (the loan is paid off) and both of our names are on the title to the car. He has a judgment against him, which will be filed next week. Is my car protected or will it be seized to satisfy the judgment? I have a loan at a different bank, which is secured by the car.

Comments for Cosigner on my car loan has judgment against him. Can my auto be seized?

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Jun 30, 2011
Advice, not an attorney
by: Anonymous

They cannot take your car if you have a lien against it, through your new loan, whether your Dad is on the title or not. It is a "secured" loan, secured by the car, as collateral. I would have my Dad's name removed from the title. There is no need for his name to be on the title any longer, unless he co-signed for the new loan you have. Have him sign the title over to you, obtain a new title in your name only, and have the title delivered to the Loan Company. That is, if he is not signed on the new note. If he is, the Loan Co. will, most likely, not allow you to remove his name.

Jun 30, 2011
Cosigner on my car loan has judgment against him. Can my auto be seized?

Your situation is a bit complicated so I spoke with an attorney here in Texas to get you an answer. Here is what he told me:

1. If you and your father are both on the car title, then you both own the vehicle.

2. If the car is the only vehicle owned by your father, then it's considered exempt property in Texas and the creditor who sued your father cannot take the car to satisfy the judgment. However, if your father used the vehicle to collateralize the debt he has been sued for, then the car CAN be taken.

The attorney advises that you meet with a consumer law attorney in your area so you can get clear about whether or not your car is at risk.

Finally, as an aside, you and your father may want to protect one other going forward by taking one of you off of the car title. Right now, with each of you on the title, you are potentially liable for the financial problems of the other.

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