Legal Question in Credit and Debt Law in Michigan

Re: liability for debt

If the bill is coming from the State of Michigan because the vehicle was abandoned, then yes you are liable. Word to the wise: when selling a car to an unfamiliar private party it is best to go to the Sec of State with the person to make sure the car gets registered with the new owner for this exact reason.

Nevertheless you can bring a small claims action against the buyer for the amount. You'll need proof that you signed off on the title--a copy of the title. If you didn't copy the title you signed over, it will be more difficult to prove your case but not impossible. And there's always the chance the other party will default. You can get a judgment, but collection is another matter entirely. If this person changes jobs or moves a lot you may never get your money and it might not be worth pursuing--depends how much the towing bill is.