Legal Question in Credit and Debt Law in Tennessee

Debt to family member

My husband, children and I live with my parents (we pay rent and all utilites). Years ago they loaned us money interest free to buy a vehicle. We had an oral agreement as to monthly payments. Three years ago my father lost his high paying career job and so did my adult brother. We picked up a lot of the slack as to groceries etc. Mostly for this reason we have missed months of payments over the years. We have decided to move out and my father has informed us that we must pay him every cent on the balance of the loan before we leave. Although we would like to do this we may not be able. We are however determined to make up any arrears before we leave. What is his legal recourse if we catch up on arrears? What is his recourse if we do not catch up? Can he legally hold on to some of our property?


Asked on 3/06/04, 10:50 am

1 Answer from Attorneys
James R. Becker, Jr. Becker Law Firm

Re: Debt to family member

If the car is legally titled in your name and your father's lien is not noted on the title, he cannot legally prevent you from taking the car with you when you move. On the other hand, he can sue you for the unpaid balance of the note. My experience is that in situations like this, it will come down to who has the best documentation of the transaction and the payments that were made.

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Answered on 3/09/04, 9:58 am


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