Debtors Exam

After they pay the semi-truck off, what if they agreed to let me file a lien on it?

I don't understand what this question means. Obviously, if they agreed, then you'd have the ability to file a lien. However, I have a hard time believing you didn't know that.

Would this mean we would benefit from not having the semi-truck in our name any longer?

Why would you think you might benefit from not having title in your name?

while still having control of them not being able to sell the truck without paying me back for the repairs first?

Obviously, if you have a lien, then the owner would not be able to convey clear title without you releasing your lien.

Would being a lienholder make us as liable as if the title was in our name?

Liable for what?

Sounds like you would benefit greatly from a consultation with and retention of a local attorney.
 
Would being a lienholder make us as liable as if the title was in our name?

Doesn't matter if you were a lienholder or not. Doesn't matter if the title is not in your name.

Even the slenderest thread connecting you to the drivers is guaranteed to get you named in a lawsuit, liable or not. A trucking accident with one of those rigs can take out lots of vehicles and kill or maim lots of people. Defense costs for protracted litigation could cost you hundreds of thousands of dollars even if you are eventually found not liable.

Depending on the scope of your operations, a minimum of $10,000,000 liability insurance including Non-Owned Auto coverage is recommended and you wouldn't have to be looking for gimmicks that don't prevent the knock on the door and delivery of the lawsuit.

What are your Commercial Auto liability limits now and does it include Non-Owned Auto?
 
Doesn't matter if you were a lienholder or not. Doesn't matter if the title is not in your name.

Even the slenderest thread connecting you to the drivers is guaranteed to get you named in a lawsuit, liable or not.
I am not sure that's correct. A lienholder of a vehicle has no ownership interest. When was the last time that Toyota Financial (for example, or any other lender) was sued because one of their borrowers caused an accident? Filing suit against a lienholder solely because they are a lienholder could possibly lead to sanctions (or other adverse consequences) based on malicious prosecution.
 
Doesn't matter if you were a lienholder or not. Doesn't matter if the title is not in your name.

Even the slenderest thread connecting you to the drivers is guaranteed to get you named in a lawsuit, liable or not.

I completely disagree. Being a lienholder is absolutely NOT "guaranteed to get [the lienholder] named in a lawsuit."

When was the last time that Toyota Financial (for example, or any other lender) was sued because one of their borrowers caused an accident? Filing suit against a lienholder solely because they are a lienholder could possibly lead to sanctions (or other adverse consequences) based on malicious prosecution.

Exactly.

That said, the admonition to carry adequate insurance is well-taken.
 
Z and Z, you both misread what I wrote.

Read it again, carefully.

;)

Let's break it down.

First, the question that you quoted:
Would being a lienholder make us as liable as if the title was in our name?

Then, your response:

Doesn't matter if you were a lienholder or not. Doesn't matter if the title is not in your name.
That is not true.

Even the slenderest thread connecting you to the drivers is guaranteed to get you named in a lawsuit, liable or not.
That is also not true. As I mentioned, one does not sue when they know they should not sue. Simply being a lienholder on a title does not mean that one is liable for the operation of the vehicle. I'll grant that an opposing attorney may gather information about the lienholder to see if there is some other connection, but if an attorney were to initiate a suit against a lienholder based solely on that lienholder's status as a lienholder, then that attorney will get in trouble, plain and simple.

A trucking accident with one of those rigs can take out lots of vehicles and kill or maim lots of people.
Yep, definitely true
Defense costs for protracted litigation could cost you hundreds of thousands of dollars even if you are eventually found not liable.
What "protracted litigation"? (See above.)

(I won't comment on the insurance portion of your reply, because I do agree with that.)

What did I (we) misread?
 
I have a judgment against a former business partner, we have made unsuccessful attempts to garnish his wages. We tried a debtors exam and of course, he requested it to be done via zoom. I was surprised to find out that the judge was only available for 30ish seconds and after asking if I had hired a court reporter left and never returned. (I didn't hire a court reporter because I assumed the judge would be there)

Without the judge or a court reporter, the defendant answered some questions and refused to answer others. It was my understanding during a debtors exam that if a defendant doesn't answer questions or answer them truthfully they can have a warrant out for their arrest.

In hindsight, I wish I would have used my cell phone to video the zoom meeting. Is this normal for a judge to leave? If I request another debtor's exam and hire a court reporter and the defendant is unwilling to answer certain questions will the judge review the court reporter's notes?

Although the defendant agreed to pay during the zoom meeting he never followed through.

Darren
 
(I didn't hire a court reporter because I assumed the judge would be there)

The statute seems a little vague about the responsibility of making the record of the proceedings. See 630.4 Debtor Interrogated.

630.pdf (iowa.gov)

Without the judge or a court reporter, the defendant answered some questions and refused to answer others. It was my understanding during a debtors exam that if a defendant doesn't answer questions or answer them truthfully they can have a warrant out for their arrest.

That's addressed by 630.11 at the above link. The reality is that the debtor is unlikely to be arrested just for failing to answer a few questions. You would likely have to file a motion for an order to show cause why the debtor shouldn't be held in comtempt. The debtor will have the opportunity to explain why he didn't or shouldn't answer specific questions and the judge will decide whether or not to compel him to do so.

I suggest you study the statute and perhaps consult an attorney.

If this has anything to do with your rentals or trucking business you would be wise to have an attorney assist you in these matters.

Impossible to collect on our small claims judgements · TheLaw.com
 
It isn't wise to push debtors TOO hard.

Why?

A push or prod, can cause SOME debtors to seek the shelter and protection of BANKRUPTCY.

If that happens, you'll never collect one, copper penny!
 
I have a judgment against a former business partner, we have made unsuccessful attempts to garnish his wages. We tried a debtors exam

I'm curious about your unexplained shift from singular to plural.

It was my understanding during a debtors exam that if a defendant doesn't answer questions or answer them truthfully they can have a warrant out for their arrest.

You can't really know if the answers are truthful or not. If the debtor refused to answer questions you believe he should have answered, the typical procedure is to file a motion requiring answers.

Is this normal for a judge to leave?

What's normal in Unknown County, Iowa? I have no idea, and I doubt anyone here does either. In the jurisdictions where I have practiced and been involved in debt collection for the past 30+ years, I have never heard of a debtor exam being conducted in front of a judge. Usually, there are dozens of debtor exams conducted in a single day and the parties all check into the same courtroom. The debtors are sworn in bulk, and the exams are conducted in the hallway, the cafeteria, or wherever the parties can find room. You only go back in front of a judge if a dispute arises. I've never heard of a debtor exam being done by Zoom.

If I request another debtor's exam and hire a court reporter and the defendant is unwilling to answer certain questions will the judge review the court reporter's notes?

Transcript, not notes.
 
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