I am making the final payment on a vehicle that I will own. Can creditors place a lien or judgement on something that has no money due, that I own free and clear?

Hello p:

It depends on your agreement with the creditors... A credit card, for example, is a NON secured loan. That means the bank has NO security for your loan. Therefore, they CAN'T seize your car, because that would mean your CAR was security, and it ISN'T.

excon

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Originally Posted by excon

Hello p:

It depends on your agreement with the creditors... A credit card, for example, is a NON secured loan. That means the bank has NO security for your loan. Therefore, they CAN'T seize your car, because that would mean your CAR was security, and it ISN'T.

excon

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- unless the OP is talking about a Judgment, and that depends on where OP resides.

Peppermint, you should give us more information.

In some areas a creditor can place a lien on things that you own if you owe them money, and they have, or get, a judgment against you.

It would help to know:
1. What state are you in? and
2. Do you have judgments against you? and
3. Do you have other creditors (who do not have judgments) that you owe substantial monies to?

A car that is owned free and clear is the type of property that yes they would want to try and even take if they have a judgement against you. They don't want one that money is owed on.

It all depends on where you live, what type of loan agreement you made.
Many places, like payday loan places you sign all sorts of agreements to allow them to take personal property you own.