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What are my options against a debtor who defaulted? I have a lien on his car but the car is worth less than what he owes me

Miami, FL |

1 year back, my friend took a $25,000 loan from me. As a collateral, I have a lien on his car - the car was only worth $20,000 that time. He agreed to pay me $500 a month for 5 years in order to repay the loan. He paid me on time for the first 8 months but has not paid anything since the last 4 months. I do not think he has many other assets but he has a good job. Is there anything more I can do than just take the car (car is worth less than what he owes me). Will this default reflect on his credit history?

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Attorney answers 3

Posted

Contact reop company and attempt to take vehicle. Sell at auction and due for deficiency.

Asker

Posted

Did you mean "sue for deficiency"?

Posted

Your best bet would probably be to file a lawsuit on the debt and if you can obtain a judgment against him, then you may execute against his personal property and seek a garnishment of his wages if he is not exempt from garnishment. Once you have a judgment, you will be entitled to conduct discovery in order to determine what, if any, assets he does have.

Asker

Posted

Thank you for the response. Is there a way (without going to the court) that I can make this default appear on his credit report?

Alison Nicole Emery

Alison Nicole Emery

Posted

Generally not, unless you have a reporting account with a credit reporting agency, which is generally reserved for banks and similar types of financial businesses. However, if you do obtain a judgment against him, the fact that there is a judgment will be reflected on his credit report, whicj may adversely affect his credit.

Posted

If he's still your friend, talk to him first, and see if you can work it out. If not, you will have to sue him and get a judgment to be able to garnish his wages (provided they're not exempt because he's a head of a family), or for the sheriff to go and take the car back (very expensive to do by the way).

Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-client relationship is created or is or is intended to be created by my answer. You should contact an attorney in your area to discuss your case.