Can my wife sell our new car if her name on the title but my father is the one whose name is on the loan?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can my wife sell our new car if her name on the title but my father is the one whose name is on the loan?

My father took a loan out of the bank a couple months ago for $12,00. This was for my wife and I to get a new car. When we got the car, my wife went to the DMV and the title is in her name. She has recently cheated on me and we have separated and we still owe the bank $11,000 over the next 3 years. She has threatened to take the car and sell it and get a new one and leave my dad with this loan. The lender has sent letters to me and my father asking for the title since it’s theirs until the loan is paid off. What legal problems can she face if she tries to do that?

Asked on August 9, 2011 Georgia

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

Your wife can sell the car you have written about since she is on legal title to it. However, the loan whish is secured by the car made by your father is most likely registered with a commercial code filing with your state's secretary of state's office.

The significance of this filing is that if the car is sold at a dealership, the dealership will check to see if there is a loan securing the car and pay off the lender. The car dealership most likely would not buy the car for any amount less than the loan's balance since the loan needs to be paid off in full for the transaction to occur.

The above scenario only applies to a reputable car dealership.

Your wife could sell the car to some guy off the street for $5,000. However, the unpaid loan in this scenario secured by the car would still remain where the lender could repossess the car if its monthly payments are not kept current.

Good luck.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption