What are an owner’s rights regarding a non-paying co-owner?

UPDATED: Aug 20, 2011

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What are an owner’s rights regarding a non-paying co-owner?

I co-own a car with my daughter; she is almost 3 months behind in her payments. I want to take the car and sell it before it hurts my credit; they call all the time. What can I do here? Can I take a car and sell it? What are my chances if I take her to court for the car?

Asked on August 20, 2011 Michigan


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If you are on registered title to the car, you can try and sell it legally. The problem is that your daughter is also on legal title and she will need to sign off on any pink slip to any new owner in the event of its sale.

If you are paying on the car as the co-owner where she is paying none of the monthly installments, you are entitled to reimbursement for all expenses you have incurred in paying for all expenses of the car that your daughter is not paying for.

You should try and convince your daughter to first sign off on the car's registration placing you as its sole owner in order for you to try and sell it. With the money received you can hopefully pay off the lender. If your daughter will not cooperate, you should consider bringing an action for all expenses you have incurred on her behalf regarding the car.

Good luck.

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