ex finacee says he'll sue!

What is the name of your state? MI

After I broke it off with my fiancee, he has threatened to sue me in small claims court. He lives in IN, and says that he is filing in MI. He gave me a credit card to use at my discretion when we were together and told me to buy what I needed for myself and two daughters for school. I purchased approx. $500 in clothes for my job (I'm a teacher) and some winter coats and clothing my my children. When I broke up with him, I immediately gave him the card. I also returned the $5000 diamond engagement ring that he had given me. Weeks before our break up, he was staying with my daughters (they considered him to be their step dad already, although he didn't live with us) while I attended a conference (for work) 5 hours from home. I had driven the school's vehicle and left my car with him. He totaled my car and a police report was filed- he was fined and found at fault. The officer thought he was drunk (by his actions) and gave him a breathalizer. He bragged to my daughters and a co-worker of mine that he wasn't drunk...it was the first thing that he said. At the insistance of my daughters, he called me that night to tell me what had happened. He sounded drunk...my daughters believed him to be as well. When I returned, he took me to get a rental car. He agreed to pay the deductible plus an add'l $300. He also told me that I didn't owe him anything for the car that he had just crashed. I agreed. He had bought the car for me (at that time) 14 months prior for $4600. He told me after the fact that I would pay him $135 a month until the car was paid off. He never drew up a contract or even asked if this would be acceptable. We drove this car whenever he came up for the weekend and on all of our family vacations. I paid for the insurance, maint., and repairs. I used the $300 from him and the check from the insurance company and bought a car and put it in my name. According to him, I was clear of any debt from the car that he had totaled. There is no paperwork, or contracts. What can happen to me? I am a single parent, I rent my home and have no property or savings. He says he is going to sue me for $3000 (the max in MI), for the remaining cost of the totaled car. The car that I purchased in approx $1000 less than the car that he purchased.
My apologies for the length...I think that the incident leading up to his release of me from payment for the vehicle is very important.

In whose name is the car registered? In whose name is the loan on the car?

ex fiancee says he'll sue!

The first car was paid for in cash by my ex fiancee. The title and registration was in both of our names. The car that I bought with the insurance settlement (from the car that he totaled) and $800 from him ($500 was the deductable that he was responsible for because he was ticketed and found at fault in the accident) is in my name only.

unless he has something in writing showing that the car was a loan and you agreed to pay a certain amount, he can go pound sand.

ex fiancee says he'll sue!

I have made payments to him over the past year and a half by check. Although I have another car he says I still owe him (I received $ from the insurance company from the car he totaled). Won't the judge look at the payments that I've made as an agreement to pay?
Thanks for you advice!

"What can happen to me?"
*** A lot. Ranging from absolutely nothing all the way to him claiming that every nickel he spent on you was a loan.

"He says he is going to sue me for $3000 (the max in MI), for the remaining cost of the totaled car."
*** And based on your post (and subsequent posts), if he does file suit, you may have a problem here...... even without a written agreement. All he would have to do was to show the court that you have made payments to him on the vehicle and that would likely be sufficient to show that it was a loan.