Collecting your Judgment: Vehicle Levies
You are permitted to go after a debtor’s vehicle to satisfy a judgment. A vehicle registered to, and in the possession of the debtor may be levied and sold at auction by the Sheriff. A car, truck, motorcycle, boat, plane or recreational vehicle can all be used to satisfy a judgment.
Factors to consider before a vehicle levy:
Potential high costs to you
Low likelihood of producing cash
Substantial time and trouble
Limitations on vehicle levies:
- Debtor may not own vehicle:
If the vehicle is new and in good condition, the owner likely owes money to a lender, such as a bank or car dealer, and the lender would have to be paid off before a judgment amount could be collected. Forced sales typically do not meet the value of the car so it is unlikely that a judgment could be recovered if the owner does not own the vehicle free and clear. Additionally, a levy cannot be done on a leased vehicle.
2.Vehicle may not be worth much:
Even if the debtor owns the vehicle outright, it may be an older car and not worth the cost of sale. Even if the vehicle is sold, it may not cover all the expenses involved in a vehicle levy. Kelley Blue Book can assist in determining the value of a car.
- Vehicle may be exempt:
If the debtor’s only vehicle is the one seized, they are entitled to an automatic exemption of $2,550. After the forced sale, the debtor will receive $2,550 before a judgment is paid. The bidding at auction begins at $2,550 and if the minimum is not met, the vehicle is returned to the debtor.
- Vehicle will sell for less than value:
Vehicles that are seized to satisfy a judgment are sold at auction but they often bring in less than the vehicle’s trade-in value. Typically, auctions sell for half of the Blue Book value.
- Vehicle levies are expensive:
In order to initiate a levy, the Sheriff must receive a $1,800 deposit in advance. This cost can be recovered by the sale of the vehicle but if the sale is unsuccessful, then the deposit is lost.
- A court order may be needed:
A vehicle can only be seized if it is in a public place, such as a street or public parking lot. If the vehicle is stored in a garage there must be a seizure order from the court.
How to levy a vehicle:
- Obtain a Writ of Execution directed to the county where the vehicle is located
- Provide Sheriff with description of vehicle; Make, Model, License plate or VIN number and the approximate location of the vehicle so that they may seize the vehicle.
How to get Vehicle information:
From the Debtor’s examination
From Debtor’s statement of assets
Court records
Data search or private investigators
DMV: if requesting info from the DMV, fill out a Vehicle Registration Information Request (INF-70R). DMV will notify the owner of the request and the owner has 10 days to object
- Option to attend the sale of the vehicle
- Obtain judgment amount: contact sheriff’s department to collect money judgment from the sale