Car Taxes Question. (Legal problem inside) Cosigned / sold car issue.

[socalx]

What is the name of your state (only U.S. law)? Kentucky

I had co-signed a car loan with an ex. We separated last year in May 2010. After the separation I kept the car although I was the co-signer.

At the beginning of the year (2011) she demanded that I sell the car. She also said she would just come and get it. I knew she could not afford the vehicle, so instead of ruining my credit by giving it to her, I sold it as she requested.

(I primarily kept the vehicle to keep my credit in good standing)

Her birthday is next month. She has since purchased another vehicle. Apparently since I sold the other car and it was in her name, she had to pay vehicle taxes on it and the other car she bought. I did not know about this.

I was sent a Certified letter from her Lawyer today stating that I had 30 days to pay her the full amount of the car taxes or she will be forced to file an action against me. ( I don't know what that means )

My questions is, does this hold any weight? Do I have to pay this? She put me in a bind when she left and I had to fork out the extra expenses on the apartment and storage for her furniture. She already owes me well over double what the taxes are. I also have saved text messages where she states the car is hers and that she would take it from me if I didn't do what she wanted.

I just don't want to end up going to court and find out that I would have had to pay it in the long run AND end up paying court cost. I would hate having to give her more of my money.

Any help would be appreciated.

Thank you in Advance.What is the name of your state (only U.S. law)?

 

[Zigner]

What is the name of your state (only U.S. law)? Kentucky

I had co-signed a car loan with an ex. We separated last year in May 2010. After the separation I kept the car although I was the co-signer.

At the beginning of the year (2011) she demanded that I sell the car. She also said she would just come and get it. I knew she could not afford the vehicle, so instead of ruining my credit by giving it to her, I sold it as she requested.

(I primarily kept the vehicle to keep my credit in good standing)

Her birthday is next month. She has since purchased another vehicle. Apparently since I sold the other car and it was in her name, she had to pay vehicle taxes on it and the other car she bought. I did not know about this.

I was sent a Certified letter from her Lawyer today stating that I had 30 days to pay her the full amount of the car taxes or she will be forced to file an action against me. ( I don't know what that means )

My questions is, does this hold any weight? Do I have to pay this? She put me in a bind when she left and I had to fork out the extra expenses on the apartment and storage for her furniture. She already owes me well over double what the taxes are. I also have saved text messages where she states the car is hers and that she would take it from me if I didn't do what she wanted.

I just don't want to end up going to court and find out that I would have had to pay it in the long run AND end up paying court cost. I would hate having to give her more of my money.

Any help would be appreciated.

Thank you in Advance.What is the name of your state (only U.S. law)?

Did you give her half of what you sold the car for?

 

[socalx]

Hello,

Thank you for the reply.

I actually sold the car for the loan value. It was a $19,500 loan. I actually sold it for $19,000, and had to pay $500 out of pocket to make it clear. So there was no money left over.

 

[tranquility]

You said you co-signed the loan. Did you co-own the vehicle? Were you on title?

Closer reading edit:

Apparently since I sold the other car and it was in her name, she had to pay vehicle taxes on it and the other car she bought.

Oops. It appears the OP unjustly withheld the property of another. Not only that, it seems he sold it.

You're not supposed to do that. Some would call it stealing. Others, fraud. (Some on the list prefer "criminal conversion".)

Take the letter seriously and get your own attorney. You may have a major problem. The only thing which keeps me from getting all jellied inside is the fact there was no equity and wonder what the ex's damages might be. Certainly, they would include taxes for a sale she didn't make. I'm thinking the OP is guilty of the tort of conversion.

 

[TinkerBelleLuvr]

At the beginning of the year (2011) she demanded that I sell the car.

Was that demand in writing?

 

[tranquility]

Even if it were, if he already had possession without consent of the ex, the conversion (or at least a trespass to chattel) tort was already complete.

 

[socalx]

The demand was in a text that I saved. Also I didn't unjustly take the car. She wouldn't pay for it so I had no choice but to pay for it. I think she was trying to buy a house which is Why she wanted me to sell it. I think that's to free up the equity.

At any rate, if you are saying that I'll be Better off just paying it then I will. I don't want any trouble, just checking to see what my options were.

Also, I legally sold it. I had the title and it was a "or" on the title. But my name was at the bottom.

 

[TinkerBelleLuvr]

Why were there taxes due to SELLING a car? That doesn't make sense.

 

[socalx]

Kentucky state law makes it so that we have to pay vehicle taxes every year. So if you sell a car it is due around the birthday of the owner. The taxes are based on what the car is worth to a %. In this case, around $300.

 

[tranquility]

Sigh. Well, if you were a part owner, why don't you owe your portion of the tax?

 

[socalx]

I offered to pay half but she wants me to pay all of it. And the letter from her lawyer says to pay all of it in 30 days or she will seek "action."

 

[Zigner]

I offered to pay half but she wants me to pay all of it. And the letter from her lawyer says to pay all of it in 30 days or she will seek "action."

If you were not on the title at all, then you should request a full release from any further liability to the ex relating to the sale of the car. That would be in exchange for paying the full amount due. When all that is done, thank your lucky stars.

 

[socalx]

I was on the title. It was her name OR me. That's how it was listed. But I'll pay it, I just wanted to know what options I had here.

I did find out this was due on the 18th of last month. She paid it on the 15th and the letter was wrote on the 30th. So she paid it already and the lawyer request is that I pay my ex directly for the amount she has requested or she will seek action. I'm pretty sure I shouldn't pay my ex directly.

 

[Zigner]

I was on the title. It was her name OR me. That's how it was listed. But I'll pay it, I just wanted to know what options I had here.

I did find out this was due on the 18th of last month. She paid it on the 15th and the letter was wrote on the 30th. So she paid it already and the lawyer request is that I pay my ex directly for the amount she has requested or she will seek action. I'm pretty sure I shouldn't pay my ex directly.

If she didn't have the car, why should she pay anything? I think her request is proper. Again, I would suggest that you get a release from any further liability to the ex relating to the car.

 

[tranquility]

Make a deal for 1/2 and then ask for 1/2 of the loss on sale. $300 is small enough to negotiate with without fear.