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Richard, Attorney
Category: Business Law
Satisfied Customers: 55605
Experience:  32 years of experience practicing law and a businessman.
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I did a handwritten contract with a "friend" so that he could

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I did a handwritten contract with a "friend" so that he could pay me to pay off my car loan and ultimately purchase my vehicle from me. Because I knew he was not financially stable, I stipulated that if he missed two consecutive payments, he must pay the third payment in the full amount of all three payments on the first of the third month. (when we originally wrote the contract, we were engaged and intended to share a home and the car. We had broken up the week we signed the contract (prior to signing) and I failed to remove that stipulation as it was placed there with the original assumption that we would be sharing expenses). I also stipulated that he must reimburse my insurance costs monthly. I literally carried him 7 months on insurance last year before he paid me in full for the back insurance and three months missed payments in the third month (well after the first of the month). He then paid me through the month of January. It is now February 4th and I have no car payment and no proof of new insurance. Given the fact that he has blatantly disregarded the contract in the past, is it within my rights to repossess the vehicle since I hold the Title? He currently owes approximately $5,000 on the vehicle.
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good evening. Since he is in default on the contract and the car title is in your name, which means the car belongs to you, you can go take possession of the car. You must do so, however, without breaking and entering or disturbing the peace. You may want to engage a professional repossession company to do this for you just to avoid trouble. If the car value is not sufficient to pay your damages, or if you don't want to repossess the car, you can sue him for the default in civil court. Because of the amount in issue, you can bring this claim in small claims court without having to engage a lawyer. This will give you valuable leverage and collection options because once the suit is filed and a judgment awarded, you become a judgment creditor, and if the losing party doesn’t then pay the judgment, you can have the sheriff serve a summons on the losing party for a debtor examination. That forces the losing party to meet the judgment creditor in court and answer questions under oath about the losing party's assets. After that information is obtained, the judgment creditor has the power to attach bank accounts, and/or have the sheriff seize other property to satisfy the judgment.

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Thank you so much for the positive rating! I appreciate having had the opportunity to serve you! If I can be of assistance to you in the future, just look me up and I will be happy to help!