Garnishment of Wages

[joe645]

I am a Nevada resident. Sometime ago, I gave a 2002 Toyota Camry to my Grandson and his wife signing over the title. Last year, they had financial troubles and took out a title loan. Soon after, he lost his job and the title company payments were piling up with interest. I elected to pay the Title Loan and now have the title in hand. I also had them sign a financial agreement to reimburse me for paying the loan off. The agreement is between them and me "together and individually". Fast forward my Grandson is unemployed and in Sober Living. His spouse has filed for divorce but not yet served him. She is employed. I want to pursue legal matter against her for back and future payments. How to proceed?

 

[Zigner]

Sue them both.

 

[LdiJ]

I am a Nevada resident. Sometime ago, I gave a 2002 Toyota Camry to my Grandson and his wife signing over the title. Last year, they had financial troubles and took out a title loan. Soon after, he lost his job and the title company payments were piling up with interest. I elected to pay the Title Loan and now have the title in hand. I also had them sign a financial agreement to reimburse me for paying the loan off. The agreement is between them and me "together and individually". Fast forward my Grandson is unemployed and in Sober Living. His spouse has filed for divorce but not yet served him. She is employed. I want to pursue legal matter against her for back and future payments. How to proceed?

Who has physical possession of the car?

 

[Litigator22]

I am a Nevada resident. Sometime ago, I gave a 2002 Toyota Camry to my Grandson and his wife signing over the title. Last year, they had financial troubles and took out a title loan. Soon after, he lost his job and the title company payments were piling up with interest. I elected to pay the Title Loan and now have the title in hand. I also had them sign a financial agreement to reimburse me for paying the loan off. The agreement is between them and me "together and individually". Fast forward my Grandson is unemployed and in Sober Living. His spouse has filed for divorce but not yet served him. She is employed. I want to pursue legal matter against her for back and future payments. How to proceed?

Yes indeed, what has become of the 2002 Toyota Camry? Or do you find its whereabout of no particular moment? (Apparently so since you conveniently failed to mention it.)

What did the unfortunate borrowers (grandson and soon to be ex ux) receive in consideration for their so-called agreement to reimburse you for "electing" to voluntarily pay the car loan and release the title?

Did the "agreement" authorize the lender to release the title to you? What is the fair market value of the Camry? When you gifted it and currently? What was the balance of the car loan when you paid it?

Which came first? The payment of the loan secured by the Camry or the agreement to reimburse you for payment of that loan secured by the Camry?

What do you mean you intend to pursue "back and future payments"? Does the mentioned "financial agreement" have an acceleration clause?
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So, they have split the sheets! Such a pity. Now it is unlikely that you can seize as collateral their first born.

 

[adjusterjack]

I want to pursue legal matter against her for back and future payments. How to proceed?

I'm guessing that you want to absolve your grandson of responsibility and just go after the person with the money.

That might not work, as she can cross claim against your grandson for indemnification. That brings him into the lawsuit anyway.

 

[joe645]

The Toyota is now in our hands as well as the Title. The Wife has agreed to come forward with dollars due and to continue payments. The Toyota is a piece of junk now and needs some $3500 worth of repairs which is above the car's value. I intend to sell the car for whatever I can get and pay down the debt avoiding any legal action. Thanks for the replies.

 

[LdiJ]

The Toyota is now in our hands as well as the Title. The Wife has agreed to come forward with dollars due and to continue payments. The Toyota is a piece of junk now and needs some $3500 worth of repairs which is above the car's value. I intend to sell the car for whatever I can get and pay down the debt avoiding any legal action. Thanks for the replies.

Your grandson is unemployed and in sober living. That tends to indicate that his personal problems are the root cause of both their financial problems and their divorce. If that is correct, then for me, it is more than a bit tacky for you to hold his soon to be ex wife responsible for his problems instead of holding him responsible...particularly when the car is in your possession. Based on its condition, I am also wondering if you did them any favors paying off the title loan rather than just letting the car be taken.

 

[Taxing Matters]

I am also wondering if you did them any favors paying off the title loan rather than just letting the car be taken.

It would certainly make their credit rating much better to have it fully paid rather than having a repo and debt written off reported. That affects the credit they can get and what interest rates they pay. It may well be worth paying it off to keep the credit rating intact even though it might mean they pay more now than they would with a repo.

 

[adjusterjack]

I am also wondering if you did them any favors paying off the title loan rather than just letting the car be taken.

I'm also wondering that.

It's called enabling.

It teaches people that they don't have to be accountable for their actions.

 

[Litigator22]

The Toyota is now in our hands as well as the Title. The Wife has agreed to come forward with dollars due and to continue payments. The Toyota is a piece of junk now and needs some $3500 worth of repairs which is above the car's value. I intend to sell the car for whatever I can get and pay down the debt avoiding any legal action. Thanks for the replies.

Sorry to spoil your day grandpa, but at the present time there is no money due and owing you from either your grandson or his estranged spouse! (Noting that the words present time being advisedly stressed - as explained below.) Why so?

First, because all you've told us is that "they took out a title loan". Not that you personally guaranteed that loan.

Secondly, you write that you "elected to pay the title loan". A verb usage that strikingly differs from being legally obligated to pay the title loan.

However, even if you were legally obligated to pay the title loan (either because you guaranteed payment or pursuant to a separate "financial agreement" between you and the principal borrowers) all you accomplished in satisfying the title loan was to exchange shoes with the lender. (In legalese meaning you became subrogated to the same remedial rights as inured to the lender. No more and no less!

And sadly for you those remedial rights require that before any legal action to collect from the defaulting principal borrowers (grandson et ux.) can proceed, the lender (and now you) must first obtain a deficiency judgment against the principal borrowers.

And a deficiency judgment that cannot be obtained until the collateral (the Toyota) is first sold in a "reasonable commercial manner" with the net proceeds (if any) deducted from the then existing balance owed.

So, as stated at the start, at the present time you have no legal right to pursue collection from either of the mentioned hapless individuals.