I have a judgement against me from a personally secured business debt. The sheriff came and towed my car yesterday to pay toward that judgement. Most of the principle on the car is still owed to the bank that gave me the car loan. Can the sheriff still sell the car? Does the bank (who is listed on the title as the lienholder) get paid first upon a sale of the car? Is there any way I can stop this sale of the vehicle?

Yes, the car can be sold and the lienholders are paid in order - obviously, Bank first, if there are no other liens the creditor second.

I don't understand what you mean by "most of the principal" is owed to the bank. All of the principal is owed to the bank. Do you mean most of the loan remains unpaid?

You can avoid the sale by paying the debt.

If it's a "short sale" then you will owe the difference between what the car is sold for and what you owe the bank.

Weren't you served with Judgment papers?

Yes, I meant that most of the loan remains unpaid.
I spoke to the sheriff's office yesterday and they told me that they don't even look at who are any lienholders on the title (in this case the only lienholder is the bank that I got the loan from) and that the lienholder will not get paid anything, and that I will still be responsible for paying the outstanding loan to the bank. All monies paid for the car will go to the person who initiated the judgement. Is that possible?

Not according to law. At a sale lienholders are paid in the order the liens were established. I suggest you contact the bank that holds the autro loan and let them know what's happening, they will probably have their attorney contact the sheriff.

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Originally Posted by randyk

Yes, I meant that most of the loan remains unpaid.
I spoke to the sheriff's office yesterday and they told me that they don't even look at who are any lienholders on the title (in this case the only lienholder is the bank that I got the loan from) and that the lienholder will not get paid anything, and that I will still be responsible for paying the outstanding loan to the bank. All monies paid for the car will go to the person who initiated the judgement. Is that possible?

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No. If the lien is properly filed it comes first. Another reason why the Sheriff shouldn't be giving legal advice.