How to Protect a Vehicle From Judgment

When a court rules against you in a civil case, the judge can issue a judgment against you that enables the plaintiff to request a levy against your vehicle to satisfy the judgment amount. If the judge issues a levy against your vehicle, the judgment creditor can request a writ of execution from the judge that allows the sheriff to seize your vehicle and sell it at an auction known as a sheriff's Sale. Without action on your part, the sheriff will sell your vehicle and give the proceeds of the sale to the judgment creditor.

Instructions

1

Consult an attorney about the exemption laws in your state. Exemptions allow you to protect property from judgment levies depending on the value of the property. To claim the exemption, ask for an exemption claim from the court clerk, fill it out and return it to the clerk within the time specified on the writ of execution.

2

Place the vehicle in a trust. Request a form from your state's Department of Motor Vehicles to transfer ownership of the vehicle from you to the trust. The trust becomes the legal owner of the vehicle and the trustee -- not you -- manages the use of the vehicle. You must place the vehicle in the trust before the judgment creditor receives a writ of execution. In states such as California, the judgment creditor can request the writ as soon as the judgment is final if he knows about the vehicle, so barring a delay, it can be better to place the vehicle in trust before the judge renders the judgment.

3

Declare bankruptcy to protect your vehicle. Chapter 13 bankruptcy allows you to pay the judgment in monthly installments from your repayment plan. Chapter 7 will prevent the judgment creditor from collecting the judgment if you are insolvent. Consult an attorney to determine the type of bankruptcy that is best for your financial situation.

4

Negotiate with the judgment creditor to pay the judgment and remove the levy against your vehicle. Typically, a judgment holder prefers money to taking your property. Offer a payment plan that fits into your budget and, if the creditor accepts the plan, make monthly payments until you satisfy the judgment. Make sure you get the agreement in writing and retain proof of all of your payments.

5

Pay the judgment in full. Paying the full amount as soon as you can prevents the creditor from adding additional charges such as interest and recovery fees to the judgment. If you own the vehicle outright and have a high credit score, using the vehicle as collateral for the loan can be less expensive than the fees from the judgment creditor.