Can I Put a Lien on My Parent's Car If They Owe Me Money?
Each state has its own laws regarding liens on vehicles. In most cases, if your parents owe you money for something other than working on their vehicle, auto storage or auto parts purchased, you cannot place a lien. If you stored their car, performed mechanical work or bought parts to be installed on their car and they have not paid you back, you can place a lien on the vehicle to protect your interests.
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Is There a Contract?
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When you bought the parts your parents needed for their vehicle or agreed to store the car for them, you should have written up a contract. The contract should detail the terms of the agreement, timeline and terms of repayment. If you don't have a contract, you should gather the receipts for purchased parts or photographs of the car being stored in your possession.
Do They Own the Car?
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To put a lien on your parents vehicle for the money they owe you, they must own the car. It is permissible for them to still owe money on the vehicle, as long as the title is in their name along with the bank lien. If your parents lease the vehicle they drive, you will not be able to place a lien on it for the money they owe you.
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The Process
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After determining they own the car and you have some proof that they owe you the debt, you must file a civil suit against them in your county courthouse. You will be given a court date. They will be served, and when everybody gets to court, you both get to explain your sides in regard to the debt. Show the contract they signed. The judge will ask them if they disputed the debt's validity. If so, they will explain their side and the judge will rule on the matter. He will issue a judgment on your behalf if you have proved your case. If they do not dispute it or they do not appear in court, you automatically win a judgment.
Filing the Notice of Lien
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Once you have the judgment, you file a notice of lien with the office of the Secretary of State in the state where your parents reside. Include a copy of the judgment abstract (obtainable through the clerk in the court where you received the lien) along with information about your parents such as address, work contact information, which county and state issued the judgment and the amount of the judgment. Your parents will receive a notice of lien from the state letting them know they cannot sell the vehicle without first paying the judgment. If they do not pay you, you can request a forced sale of the car. Your state has specific laws for how this is done, but in most cases, you must notify your parents in writing of your intent to sell their vehicle at a lien sale. They have time to satisfy the debt by paying the judgment. If they do not pay, you can sell the car and recoup your money. If, however, the car sells for more than the judgment, you must send your parents the difference.
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