Legal Question in Credit and Debt Law in Virginia

holding a vehicle as collateral

This guy owes me money for work that I did for him and has offered the title to his vehicle as collateral. Does he have to fill out anything or sign anything on the title naming me as a lien holder or creditor? If not what stops him from going to the Dept of Motor Vehicles and getting another title stating that the original was lost? How can I be guaranteed that if he doesn't pay me what he owes me that I can take possession of his vehicle?


Asked on 4/15/06, 12:18 am

2 Answers from Attorneys
Jonathon Moseley Jonathon A. Moseley

Re: holding a vehicle as collateral

There are forms to fill out for this sort of thing. GO to the Department of Motor Vehicles website and look for it all. It is far more complex than that, and there are far better protections than you are expecting. Check it out in detail on the DMV website.

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Answered on 4/18/06, 9:55 pm
Michael Hendrickson Law Office Michael E. Hendrickson

Re: holding a vehicle as collateral

You can't(unless he actually signs the title over to you on the reverse side, making you the owner of the vehicle)) and therefore you should not accept this arrangement as currently proposed as security or valid collateral for the debt that you claim is owed you.

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Answered on 4/15/06, 1:56 pm


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