Can a person hold my caras collateral for repayment?
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Can a person hold my caras collateral for repayment?
Basically this person was my teacher of sorts and he said that if I don’t pay him back that he will hold my car for collateral.
Asked on March 6, 2011 under Bankruptcy Law, Georgia
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
A private person can be given a security interest in property, including a car, or actually hold it as collateral, BUT ONLY IF you agreed to this. This is, *you* have to agree to put the car up as security or collateral. This is common when buying a car, new or used--most automotive financing or loans include a term that the car can be repossessed in event of nonpayment--but you agree to that term when you take out the loan. If you have not not agreed to let this person have your car as collateral, then he can't take it--period. There are certain specialized cases where someone might be able to put a lien on it without your consent--e.g. a mechanics lien, from a repair shop which worked on the car and which you did not pay--but part from that, there's a word for someone taking your car without persmission: theft.
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