But you have stated in a previous post that the judgement creditor does have to pay the original lienholder of the vehicle. Now you are saying that the judgement creditor does not have to pay the original lienholder.
An unsecured judgement creditor cannot just take an automobile that a lienholder has an interest in, tow it away, sell it and pocket the proceeds. He has to satisfy the original lienholder.
You are taking my statement out of context. I never said that the judgment creditor had to pay the original lienholder for the vehicle. I said and I quote
"if you have a vehicle that has a lien against it and it is executed on by the Sheriff for an unrelated debt (the vehicle is not listed as collateral), you need to let your lien holder know of this. They will take care of this running. Then you need to deal with the lien holder directly about getting the vehicle back from them. However the costs relating to the preparation and execution of the vehicle for the judgment creditors is still tacked onto the fees relating to the un-related debt that the vehicle was taken to auction to pay for."
and
"The tug of war between the lien holder and the judgment creditor is usually not pretty, and the judgment creditor is usually out the vehicle, however the towing and storage fees are attached as normal and right fees to the judgment and subject to payback."
Let me explain in an example.
Josh Joe has a 2004 Toyota Tundra with a lien against the title to the tune of $11000.00. Josh Joe also has a judgment against him for unpaid bad checks, pastdue medical bills, etc. to the tune of $5000.00.
Collection agent X finds said vehicle on Accurint, does not see a lien against it and is unable to get the records from the States office due to privacy laws. CAX goes into account on file and finds banking info, job info etc and checks into the accuracy of the info. No current info. Goes to management at her office and gets the approval to request an execution. Execution is prepared, court signs said execution, sheriff executes on said vehicle and additional fees for execution, towing, storage and publication are tacked on. Meanwhile Josh Joe calls his lender, tells them that the vehicle has been taken. Lender then gets their legal team involved, they contact the collection agency and take the vehicle back from the sheriff's office who is storing the vehicle prior to auction. Lender has vehicle, collection agency is out that avenue of restitution for the judgment. Collection agency now has those additional execution fees tacked onto the balance of the judgment (although it is not part of the judgment unless specified in the judgment wording), and they have to look for another way to collect. If the lienholder or lender does not get involved in time, I am not sure what would happen as it never went that far in the five years I did this. The lienholder ALWAYS protected their collateral.
Make sense now?