Legal Question in Business Law in New Jersey

Am i the screwer or the screwee??

ok, here goes, 2 yrs ago i lost my license, my boss agreed to pay off my car loan and money to be deducted out of my check weekly. He used a company check to pay off the loan. Now i am to get my dl back but i still owe 7500 on the loan. My boss was bought out recently and is no longer the owner of the company in which the check was used to pay the loan. I have no legal documents saying that i owe him the money only the company whos name is remaining just changing ownership. He is now putting a lien on my car and demanding that i pay the loan in full. My question is, does he still own my car because the ownership of the company has changed hands and the written agreement we had did not mention his name at all, only the company's. The loan was also paid off with a company check not his. When a company is bought out arent all of their assets also? I know i may still owe the money but i dont think to him and can he put a lien on it. Oh the car is in my name too, never registered to him or the company. Please help me out, i think hes trying to just get an extra 7500 hes not entitled to. Any help would be appreciated thanx


Asked on 6/05/05, 4:26 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: Am i the screwer or the screwee??

FIRST OF ALL, YOU GIVE NO NUMBERS. HOW MUCH WAS PAID OFF ON THE LOAN AND HOW MUCH HAVE YOU REIMBURSED? IT IS IRRELEVANT WHO PAID THE LOAN (INDIVIDUAL OR BUSINESS) AS THIS ONLY DETERMINES TO WHOM YOU OWE ANY BALANCE DUE. A PERSON OR ENTITY PAYING THE LOAN HAS THE RIGHT TO A LIEN FOR ANY BALANCE DUE. IT IS NOT ALWAYS THE CASE THAT WHEN A BUSINESS IS SOLD, ALL ASSETS ARE TRANSFERRED TO THE NEW OWNER. IN MANY CASES ONLY SELECT ASSETS ARE TRANSFERRED. ANY ASSETS NOT TRANSFERRED ARE USUALLY RETAINED BY THE FORMER OWNER. THUS, IT IS POSSIBLE YOUR LOAN MAY NOT HAVE BEEN TRANSFERRED. FURTHER, MANY TIMES WHEN SOME ASSETS ARE SOLD, THE COMPANY IS DISSOLVED AND THE REMAINING ASSETS TRANSFERRED TO THE STOCKHOLDER. THIS MAY HAVE HAPPENED AND, IF SO, MAKES THE LOAN NOW YOU BOSS', NOT THE DISSOLVED CORPORATIONS. IF THERE IS A BALANCE DUE, A LIEN CAN BE PLACED ON THE CAR AND, IF NOT PAID, THE CAR CAN BE SOLD TO EFFECT REPAYMENT. HE DOES NOT "OWN" THE CAR, BUT HAS A LIEN WHICH CAN BE ENFORCED FOR REPAYMENT.

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Answered on 6/06/05, 6:56 am


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