I owe $1000 on a personal loan I put my car up for collateral .If I sold the car what will happen?
If you paid your debt from the proceeds of sale, nothing.
The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.
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Personal Injury Lawyer
Best answer goes to my colleague Attorney Doland.
Mr. Crosner is licensed to practice law in California and has been practicing law in California since 1978. The response herein is general legal and business analysis.. It is not intended nor construed to be "legal advice" but rather it is analysis, and different lawyers may analyze this matter differently, especially if there are additional facts not reflected in the question. Oftentimes the question does not include significant and important facts and timelines that, if known, could significantly change the reply and make it unsuitable. I am not your attorney until retained by a written retainer agreement signed by both of us. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.
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There is a difference between having a "lien" on collateral and "perfecting" it so it is enforceable. An agreement to use a car as collateral creates a lien on the car. The lien can only be perfected by registering the car in the lienholder's name with DMV or taking possession of the car. If you sell the car and the lien hasn't been perfected, the lender has a right to sue you for the $1000, but the new owner (if a "bona fide purchaser") of the car takes it free and clear of the lien, absent some other notice or extenuating circumstance.
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