Can a car be seized for debt to a bank?

Can a car be taken away for loan debts?

Any loan agreement requires repayment of funds. The borrower, by signing, agrees to comply with all the terms of the agreement and the payment schedule attached to it. If you commit violations in the payment algorithm, the bank has every right to apply penalties and organize the process of collecting credit debt. And collection may involve the seizure of borrowers’ property (read more about collection of credit debt). Can a car belonging to a citizen be taken away for credit debts? Let's look at this issue in more detail.

Can a car be taken away for loan debts?

If the car is pledged

In this case, the answer is obvious - the bank has every right to take your car. But creditors are in no hurry to take away the collateral; first, they will try to return the debtor to the payment schedule. This can happen on your own, and if actions are unsuccessful, the creditor attracts collectors, now they will be in contact with the debtor and these contacts are not entirely friendly.

In fact, from the moment of delay to the actual seizure of the car left as collateral, it may take 6-12 months. If the bank cannot influence the debtor in any way, then it goes to court to obtain permission to seize the property and sell it at auction. Of course, the court makes a decision in favor of the creditor, because an encumbrance has been placed on the car. If the debtor does not provide the car himself, bailiffs step in, whose task is to find the vehicle and pick it up. This can also be done forcibly; as they say, resistance is useless.

Selling a pledged car

After seizure, the car goes to auction, where it is sold below the average market value. The proceeds from the sale are used to pay off the loan debt, which by that time had accumulated penalties and fines for overdue loans. It is possible that not all proceeds from the sale will be used to pay off the debt. If the borrower has previously paid off the loan, then part of the debt has already been paid, so funds may remain (the car was sold at a price that is higher than the loan debt). In this case, the bank returns the difference to the borrower.

If the car is not pledged

If the car is not pledged under a loan agreement, then things are completely different. The bank cannot lay claim to the debtor’s car, no matter how large the debt is. The bank cannot, but the bailiff has every right to seize the vehicle and seize it from a citizen who does not want to pay his debts. But this is very far away, so let’s look at what will precede the seizure of an unsecured car, how they can seize a car for debt on a loan.

The bank will operate according to the standard scheme. First, he will start calling the debtor, trying to come to an agreement, and if unsuccessful, he will transfer the debt to collectors for collection.

Collectors very often scare debtors by saying that they will come and take away the property if the debt is not repaid by a certain date. But these are only deterrent measures; in fact, collectors know very well that only bailiffs can take away the property of debtors after the relevant court decision has been made.

If collectors threaten to take away your vehicle, apartment or other property, remember - these are empty threats. No one will come to you and take anything away.

If the collectors are unable to influence the debtor, then the bank has no choice - it files a lawsuit to get its money back through the courts. The seizure of the vehicle will also not appear here, because there is no encumbrance imposed on it. The bank simply files a claim to collect the debt. Of course, the court decides in favor of the bank, because there is a loan agreement that the borrower does not fulfill. But the court can write off a significant part of the debt, and the debt itself will be fixed in a specific amount. This is an obvious plus for borrowers.

There is a period specified by law to appeal the decision, and if no complaints are received, then the court decision enters into legal force. The case is transferred to the bailiff service for collection. And it is the bailiffs who have the right to seize the debtor’s property, including their car for debts.

Seizure of a car

The bailiff who is handling the case will not immediately rush to take the car from the debtor; the collection process has a slightly different algorithm:

First, a portion of the debtor's wages will be levied. The bailiff, through the tax service, finds out where the debtor works and sends a writ of execution to the place of work, according to which a withholding of up to 50% is imposed on the debtor's wages. If such a debt collection measure is completed, then you don’t have to worry about your car, the debt will be gradually repaid.

The bailiff can also seize the debtor's bank accounts. If funds are found on them, then all the money goes to the bank. With further receipts of funds to these accounts, they are also subject to withdrawal.

If the debtor does not work and does not have bank accounts, then the bailiff has no choice - he turns his attention to the debtor’s property in order to seize it. But here, too, it should be understood that in order to repossess a car, there must be a credit debt of appropriate size. No one will take your car for a small debt.

Seizure of a car by a bailiff

Even at the initial stage of collection, you may find that your car is subject to a registration ban. This is done just in case, so that the debtor will not be able to sell the car until he pays off the loan. In the future, the bailiff may seize this vehicle.

The bailiff applies to the court to obtain permission to seize the debtor's car in order to pay off the debt to the bank. After receiving permission, the bailiff begins searching for the car: at the place of residence, registration, work of the debtor. In order to find seized vehicles, joint raids by bailiffs and traffic police officers are often carried out.

Do bailiffs take a car for debts?

The harsh practice of the present time states that if there is a debt to the state, the state body has the right to collect it. And it doesn’t matter whether the debt is owed to a legal entity or an individual. If there has been late payment of the debt, bailiffs are authorized to seize accounts and electronic cards, prohibit travel outside the country, impose a ban on a driver’s license, and even confiscate property. Taking a car for debt is quite simple. Let's sort it out in order.

On what basis can a car be confiscated or seized?

Similarly, FSSP employees are authorized to act in accordance with the Federal Law “On Enforcement Proceedings” of 2019, and specifically Article 80, which refers to this action as “seizure of property.” Article 80 reads verbatim as follows:

"1. A bailiff, in order to ensure the execution of a writ of execution containing demands for property penalties, has the right, including during the period established for the voluntary execution by the debtor of the requirements contained in the writ of execution, to seize the property of the debtor.”

Despite this, a car is rarely confiscated by bailiffs. While the proceedings are ongoing, it is in the custody of the defaulter. This means that you can continue to use it, but not sell it. In some cases, bailiffs simply restrict the right of use, in accordance with Article 80 of the Federal Law, Part 4.

Seizure

How is this activity carried out? Algorithm of actions:

the presence of debts entails familiarity with this unpleasant procedure;
the issue of debts is considered in court, a writ of execution is issued;
then it is given to a FSSP employee;
The federal SP service begins enforcement proceedings; if guilt is proven, an arrest warrant is issued.

No one has the right to take your car away just like that!

For such a measure, the following prerequisites must be met:

Enforcement proceedings must be initiated (you can find out this on the FSSP website);
based on the resolution, an arrest may be announced (you can also find out about this on the current website by your last name).

Confiscation for non-payment of traffic fines, is it true?

Unfortunately it's true. And it doesn’t matter what kind of fine it is - issued by an inspector or recorded by a camera. But here it is important to know the deadlines when the delay occurred.

Deadlines related to overdue traffic fines from the State Traffic Safety Inspectorate:

The state gives 70 days to pay for it. 10 of them are given for official entry into force and 60 for payment.
At the end of this period, data about it and the owner are transferred to the FSSP. In practice this does not happen often,
The bailiff begins enforcement proceedings and gives five days to repay the debt,
At the end of this period, a decision is made to write off the debt from the personal account of the defaulter.
The car will be confiscated only if no accounts belonging to the defaulter can be found.

The current Federal Law, specifically Article 80 of the Federal Law, Part 1.1. they say that if the amount of debt is less than 3,000 rubles, then the arrest cannot be legal.

Losing in civil court for collection

If a company or a specific person filed a lawsuit and after that you have a debt, then everything goes according to the schemes described above about traffic fines. When the amount of debt is over three thousand rubles, the vehicle has the right to be taken away from you.

Frequent cases in which a car is confiscated by the Federal Bailiff Service:

at the request of the insurance company under compulsory motor liability insurance. The most common case is the failure to provide a European standard protocol by the person responsible for the accident;
when the culprit of the incident does not have a car insurance policy, so he himself is responsible for the consequences.

Confiscation of a car for non-payment of a loan

May be confiscated in a civil case. The matter concerns not only a car loan, but also any other. But only bailiffs have the right to do this. There is a difference between a consumer loan and a car loan. In the case of a consumer loan, the car is sold at a government auction. The proceeds from the sale go towards repayment of the debt; the difference, if any remains, goes to the account of the defaulter.

There are several more problems with a car loan, since in fact, the vehicle belongs to the bank. But even in this situation, the bank does not have the right to simply take the car. First, the financial institution goes to court to make a decision to seize the debtor's assets. Then the execution sheet is sent to the FSSP employees.

What to do if a car is your only source of income?

What actions will be taken if the debtor makes a living using a car? You can rest assured that they won’t be able to take your car away. This is reflected in the Code of Civil Procedure, Article 446. Another case when a vehicle cannot be confiscated is if it is driven by a disabled person.

Thus, FSSP employees do not have the right to just take the car. First, they must understand all the circumstances of the case and the debtor. To ensure that there is no violation of the current legislation of the Russian Federation.

Is it possible to avoid the seizure of a car by bailiffs?

This applies to those moments when bailiffs want to seize movable property, but at one time it actually belonged to the bank. The most common method is urgent implementation. The logic here is simple - there is no car and nothing to take. But there is an important nuance in this matter.

There are 2 ways to get rid of a car:

car sales;
give away for free.

In the case of gratuitous return, you can rent it out, but without formally concluding a contract. If everything is done officially, the money will instantly be used to write off the debt. But there is a possibility that the sale or donation may be considered fictitious, that is, made in order to hide one’s property from the FSSP. In this case, the FSSP employee files a lawsuit to have the sale deal declared fictitious. It would be a shame if you sold your car without a second thought.

There are two more ways to avoid confiscation, but they entail the inability to use the car:

dismantling it for spare parts, and giving only the body for seizure to FSSP employees as part of the arrest;
hide.

How to avoid confiscation of a car pledged to the bank?

At this moment everything is much worse. By law, you have no right to do anything with the car at all. Selling, donating, alienating or renting, all this is prohibited. In general, property, both movable and immovable, pledged to the bank is confiscated first. In fact, such a measure is taken as an interim measure, because, as stated earlier, you have no right to do anything with such property. Therefore, if you do not repay the debt on time, the bailiffs will simply seize the loan property. This is not done immediately, but this measure is quite effective.

Criminal lawyer. Experience in this direction since 2006.

Can a car be repossessed for non-payment of a loan?

There are often cases when property is taken away from debtors to pay off debt on credit and other obligations. Can a car be taken away for non-payment of a loan? What happens when a borrower does not pay the debt to the bank?

Can a borrower lose a car due to non-payment of a loan?

A loan generates debt obligations of the borrower to the bank, the failure of which entails negative consequences. When a debt is not paid, banking institutions first try to influence the debtor through various measures of influence. If this proves futile, then the property in his possession is targeted.

Usually valuable objects are considered, in particular vehicles. The car is put up for auction, and then the proceeds are used to repay the loan. If desired and financially possible, this consequence can be prevented.

It is worth noting that the borrower may lose his car not only when applying for a car loan or other loan, when the vehicle is pledged to the lender, but also in other cases when the car is not the subject of collateral. But in both situations, banking organizations need to obtain court permission to seize and sell the car!

How long before you can lose your car?

If the client is several days behind on the loan payment, then there is no need to worry. No one will immediately sue and take away the vehicle. After all, this procedure is also not very profitable for creditors. The reason for the disadvantage is the following:

The cost of a car that has already been in use is much lower.
The sales procedure often drags on for a long time.
Banks have to bear their own costs when completing a car purchase and sale transaction.

Therefore, banking organizations only resort to confiscation of property as a last resort.

You need to worry about the car being taken away for non-payment of debt if the overdue amount is more than 5-6 months.

The procedure for the seizure and sale of a car

The procedure in which a debtor's car is taken away for non-payment of a loan varies slightly depending on whether the property was pledged to the creditor.

If the car is pledged

If the vehicle is pledged to a banking institution, then there are usually no problems with selling it for debts. After all, the execution of a pledge agreement is the imposition of an encumbrance on the car. Often lenders are in no hurry to take the car right away and try to somehow influence the borrower. If all else fails, the bank goes to court for permission to seize and sell the property.

In this case, judges almost always side with the creditors and approve their request, because the car is under an encumbrance. The borrower is given a certain period of time to voluntarily give up the car for sale. If the debtor ignores the demand, the actions of the bailiffs begin. They have every right to forcibly take away the car based on an appropriate court decision.

After seizure, the vehicle is sent to auction. They usually sell it at a price that is slightly lower than the real one. The money received is sent to pay off the debt to the bank. If there are funds left after the sale, they are given to the borrower. If the proceeds are not enough to pay the entire debt, the debtor will have to pay the balance.

When handing over a car as collateral to a banking organization, you should always remember that it will be the first thing to be taken away if problems arise with paying the loan.

If the car is not pledged

If the car is not pledged to the bank, then there is no encumbrance on it and the lender has no rights to it. However, this does not mean at all that it cannot be taken away for non-payment of the loan. The bank has every right to sue the debtor. If the borrower does not try to stabilize the situation at the trial stage, the judge may decide to seize his property with subsequent sale.

In this case, the seizure of the car and other property is a radical measure, which is resorted to as a last resort. In most cases, the judge will first do the following:

Collects part of the debtor's wages. A writ of execution is sent to the organization where the borrower works. Based on it, every month a part of the income must be withheld and sent to the bank to repay the loan. However, this option only works if the borrower is officially employed.
Seizes bank accounts. Next, the availability of personal accounts, deposits, and deposits in banks is checked. If they are available and there are sums of money on them, then all funds are transferred to the creditor to pay off the debt. If new money is received into these accounts, it will automatically be written off against the debt.

If the debtor does not officially work and does not have bank accounts, then the court has no choice but to seize the property owned by him. Then everything happens according to the standard scheme - the car is put up for auction, and the proceeds are used to pay off the debt.

What to do if the bank wants to take away the car?

If the borrower is actually a conscientious person, he simply does not have the opportunity to pay the loan further, then you should try to resolve the issue peacefully.

Pay off the debt

If it is possible to repay the debt to the bank, then it is better to do it as early as possible. Then you can avoid selling the car. If you don’t have the required amount, you can try to borrow from friends. If you cannot close the loan completely, you should contact the bank and tell about your problem. Perhaps he will meet you halfway.

Request debt restructuring

Restructuring will allow you to slightly reduce the financial burden and deal with the debt without losing your car. But this option is not suitable for all clients. The bank will agree to provide the service only to those borrowers who have been regularly paying the loan for a long time, but due to extenuating circumstances their solvency has deteriorated significantly.

The creditor can accommodate you, given the difficult life situation, and revise the debt repayment schedule. In most cases, this restructuring option is used to reduce the size of monthly payments by increasing the loan term.

It is also possible to provide a deferred repayment for a certain period of time. A deferment can be given for payment of principal or interest.

To take advantage of loan restructuring, you should contact the bank and submit an application. It must describe the reason for non-payment, for example, the need for expensive treatment, dismissal from work, and so on. The presence of a valid reason will need to be documented.

If the lender agrees to help the borrower, and the latter regularly makes payments according to the new schedule, then the car will not be sold.

It is recommended to ask for restructuring before many arrears have arisen. The sooner the debtor talks about his problem, the greater the chance that the bank will agree to reconsider the repayment schedule.

Take out a loan from another bank

The borrower can contact another bank and apply for a new loan there to pay off the old debt. This service is called refinancing. It is provided by many credit institutions in Russia. For refinancing, choose a program with more favorable conditions to facilitate further debt repayment.

But it is worth noting that another bank will agree to refinance the client’s loan if it fully meets its requirements. You should apply for refinancing when financial problems have just arisen and the arrears have not yet appeared in your credit history. Otherwise, the service will be denied. Therefore, this method is not suitable for advanced cases.

Go to court

If the creditor denies any opportunity to say goodbye to the debt and prevent the sale of the vehicle, then it is worth filing a claim in court. If the arrest has already been imposed, then you need to file a claim to remove the arrest. It must contain the following information:

The name and address of the judicial authority where the claim is sent.
Applicant's passport details.
Number of a previously made decision to seize the car.
Description of the circumstances of the case.
Indication of the reason why the court should remove the arrest from the vehicle.
Plaintiff's request.
List of attached documents.
Applicant's signature.

It is important for the borrower to prove that the sale of the car is not necessary, and he has the opportunity to close his debt obligations to the bank.

How to return a car if it is already up for auction?

If the vehicle has already been sent to auction, then no amount of debt repayment will help. In this case, there is only one way to return your car - to buy it at auction. Of course, this option is suitable for those who have the financial opportunity to make a purchase.

Borrowers have every right to participate in bidding just like other people. Therefore, no one forbids them to buy back their own car. Moreover, debtors have a pre-emptive right to repurchase the property they have lost.

Is it possible to achieve an independent sale?

Banking organizations often sell cars at auctions at a reduced cost. It often happens that the proceeds from the sale of a car are not enough to pay off the debt in full. Also, collateral cars are often sold through car dealerships at a discount of almost 50%.

Therefore, it is more profitable for the borrower if he sells the car himself. And he has the right to do so. To do this, he needs to contact the bank with a corresponding application and request to obtain a vehicle passport. You will also need to draw up a written commitment that the money received will be transferred to the creditor.

If the banking institution is against independent implementation, then you can file a claim in court and obtain permission there.

Pros and cons of car repossession for the debtor

Of course, repossession and sale of a car is an unpleasant procedure for the borrower. After all, no one wants to say goodbye to their property. But it still has positive aspects for the debtor. These include the following:

The opportunity to finally say goodbye to problematic debt.
A chance to get some money left over after selling the car and paying off the debt, if the proceeds turned out to be more than needed.
Closing enforcement proceedings and restrictions associated with them, for example, a ban on traveling abroad.

One of the negative aspects of car confiscation is that the money received from the sale may not be enough to pay the entire debt. Then the debtor will have to pay off the remaining debt on his own.

If you took out a car loan, then this is doubly unpleasant. After all, you will have to return money for a car that the client no longer uses.

Thus, for non-payment of the loan, the bank can take away the car, but only with the permission of the court. This is an extreme measure that is used only in case of long delays, so the debtor has the opportunity to prevent such a negative consequence in a timely manner.

Can a car be taken away for loan debts?

When signing a loan agreement, some people overestimate their strength. As a result, there is a violation of the terms of the loan, and the bank tries to collect the overdue debt using its own security service, and in some cases with the involvement of collection agencies. All this inevitably leads to constant calls or visits from collectors.

In this article we will answer the question that worries many consumers: “Can they take away the car for loan debts?”

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Possibility of seizure of debtors' property by banks

Sometimes collectors tell debtors in telephone conversations that they will come and inventory the property, or even confiscate it. There is no need to be afraid, since property can only be confiscated by a court decision.

Situations where the car is secured by a bank are no exception. Even such a vehicle cannot be taken away without a court order.

Thus, the bank itself cannot take away any property of the debtor, including a car. All that a credit institution has the right to is:

establish penalties for non-payment of a loan (note that this is only relevant in case of malicious non-payment, that is, for more than three months, and such penalties are regulated by clauses of the loan agreement that cannot contradict federal or local legislation);
charge penalties;
go to court;
use the services of legal collection agencies.

All other methods of influencing the debtor and collecting his property are illegal.

Amount of debt upon car repossession

From the point of view of the law, the debtor’s car can be seized for any amount of debt. If the value of the vehicle is greater than the debt itself, then after the sale of the seized property, the borrower will receive a refund of an amount exceeding the total debt. To repossess the car, the bank must sue.

Credit institutions are in no hurry to do this; the following factors are taken into account:

Deadlines. Most banks begin preparing documents for court after three months of delay, some can last up to two years.
Total amount owed. If the debt is less than 30 thousand rubles, then the likelihood of a lawsuit is minimal, but some do not hesitate to sue over smaller amounts, for example, Sberbank.
Amount of fines and penalties. The greater the total debt, the greater the penalties, the more profitable it is to sue.
The total number of problem borrowers in a particular bank and in the country as a whole. The more debtors there are and the smaller the amount of debt, the less likely there is to be a lawsuit and, accordingly, the car being repossessed for debt.

Thus, by a court decision, a bailiff can seize a car for loan debts only if the legal process is “profitable” for the credit institution. There is no minimum amount of debt, but a financial institution will only spend extra money on lawyers and paying fees if it is confident that it is right and has financial benefits.

Important! Banks that almost always sue, regardless of the amount in dispute, include Sberbank, VTB, Raiffeisenbank, Alfa Bank, Gazprombank, Bank of Moscow.

Others prefer to collect small debts by contacting a collection agency or their own security service.

Seizure of a car by bailiffs for loan debts

Only they can; banks themselves do not have the right to describe the car of a problem borrower, even if it is secured. The probability that the bank will win the case is almost 100%.

At the same time, some part of the debt will be written off:

illegal penalties and fines;
commission for granting a loan (this also happens, especially if the money was issued in cash through a bank cash desk);
an impressive share of interest and fines in the event that the bank deliberately delayed going to court, pursuing the goal of increasing its own benefits (any competent lawyer can prove this).

After the bailiffs receive the writ of execution, the borrower is given 5 days to voluntarily comply with the court decision. If the debtor does not do this, then the bailiffs can describe the property. Please note that the citizen must be notified about the visit of “servants of the law” 10 days in advance, if this was not done, but you can safely file a complaint.

Can bailiffs seize a car for loan debts? If the vehicle is not secured, then the likelihood of this is not very high, especially if the amount of debt is small.

And now the main “subtlety” - in the case when the borrower has a permanent place of work, the court will oblige to gradually repay the loan in equal parts, and no more than 50% of the monthly income , but so that the balance in the hands of the debtor is not less than the subsistence level.

Debtor doesn't have a job? In this case, the court will oblige him to find a job as soon as possible and begin paying his debts. If this decision is not executed, the bailiffs will begin to seize the property.

Bailiffs can seize a car for debts to the bank, but only if the debtor refuses to voluntarily comply with the court decision and does not want to find a permanent place of work.

But even in this case, the car is unlikely to fall under their “interest” - there is too much “fussing” with such property. It's another matter when the car is on bail. In such a situation, if the debtor does not voluntarily comply with the court decision, the bailiffs will confiscate the vehicle, but only if there is a writ of execution with the return of money to the debtor, the amount of which after the sale of the car will exceed the amount of the debt.

The bank took the car: the debtor's procedure

Everything is clear with bailiffs, but if we are talking about a car loan, then after the vehicle is seized, it goes on the balance sheet of the financial institution. If the FSSP is engaged in the sale of confiscated property through state auctions, then banks do not delay this process.

The car is sold at a greatly reduced price literally a few hours after it is received on the balance sheet. In rare cases, a vehicle is left for banking needs, but only if the car is in good condition and belongs to a prestigious brand.

Sometimes the car does not cover the entire amount of debt. If suddenly this happens, you will have to “pay extra.” How exactly - the court will decide. If the borrower does not agree with the price of the car prepared by the bank for sale (sometimes they “go away” for 40-50% of the market value), an independent examination should be carried out, which will be paid by the borrower.

At the same time, we are going to court. Remember that in most cases the court takes the position of the bank. Only strong evidence of the credit institution intentionally underestimating the value of the collateral will help correct this situation. It is the independent examination that provides this “evidence.”

Important! If collectors or bank employees seize a car without a court decision, then you need to urgently contact the police - they have no right to do this. Without a writ of execution, you can only take away a mortgaged apartment, and even then not always.

Return of a seized vehicle

Even if the car has passed to the bailiffs, not all is lost - the vehicle can be returned. Neither banks nor bailiffs keep the property taken from debtors; they will sell it.

Russian legislation comes to the rescue - a car that will be sold through a state auction or directly into the hands of a direct buyer must be offered to be purchased by the previous owner, that is, the debtor, and at a price that does not differ from the auction price.

If this is not done, then you can safely complain. However, it is not always possible to buy back one’s own property - a person already owes money, there are no free funds.

The next question arises: “The bank took the car for debt, what should I do?” Only the court that imposed it can remove the seizure from a vehicle.

This is done strictly in the following cases:

when repaying debt under a writ of execution;
upon receipt of debt restructuring from a creditor, that is, a bank;
when refinancing at another banking institution.

Is the car pledged to the bank? Everything is simple with the bailiffs - you need to contact them with a written application, as well as a pledge agreement. According to the Law “On Enforcement Proceedings”, the seizure of collateral by bailiffs bypassing the bank is impossible, since their collection powers do not have an advantage over the creditor. If the arrest is not lifted after this, you can safely appeal the court’s decision to higher authorities, and file a complaint with the bailiffs themselves who described the property.

In order to facilitate this procedure, you should keep all the documents that were signed when receiving the loan. Not all banks restore them in the required time frame, the trial may drag on, and you will have to spend more money on a lawyer.

Read also how to purchase a car or apartment at an auction for the sale of debtors' property.

Conclusion

So, banks and bailiffs can seize the property of problem borrowers, including cars. This happens only by court decision, which can be appealed if the creditors violate the current legislation.

You can return the car from seizure by paying off your obligations or through redemption after an offer from collectors. The best way to avoid such problems is to make required payments on time and correctly calculate your capabilities before signing a loan agreement. Sometimes it’s easier to save up for the necessary thing than to take out a loan, risking your property.

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Can bailiffs seize a car for debts and how to avoid this?

Arrest of a car by a bailiff

If you have debts to the state or if a government agency is authorized to collect a debt from you to pay off debts to individuals or organizations, then there is no escape from them. This is a harsh 2019 practice. Bailiffs can seize accounts and cards, suspend a driver’s license, not allow them to go abroad, etc. foreclose on property. In this case, it will be confiscated. And the car is a high-risk area in this case, since it is easiest to pick it up for debts. But let's talk about everything in order!

What gives bailiffs the right to confiscate a car and what is an arrest?

This right to the service of bailiffs is assigned by the Federal Law “ On Enforcement Proceedings ” (hereinafter referred to as the “FZ”) of 2019. This is called “seizure of property”. Specifically, Article 80 of this Federal Law says the following:

1. A bailiff, in order to ensure the execution of a writ of execution containing demands for property penalties, has the right, including during the period established for the voluntary execution by the debtor of the requirements contained in the writ of execution, to seize the property of the debtor .

A car is formally a movable property. This also applies, like everything in this article, to motorcycles, mopeds, scooters, tractors and other types of personal equipment.

But it is important to understand that an arrest does not necessarily mean the seizure of a car. Bailiffs don’t always confiscate a car. Often it is in the custody of the debtor (that is, during the sale the debtor is allowed to continue to dispose of it). And sometimes they can even simply restrict the right to use a car (Part 4 of Article 80 of the Federal Law).

How is arrest imposed?

The procedure for seizing property is quite simple:

you have debts for which your car and other property may be seized,
for such debts, a court order is formed or a court decision is made with the corresponding writ of execution,
the writ of execution is handed over to the bailiffs,
The bailiff service initiates enforcement proceedings and issues an arrest order.

Arrest should not be confused with confiscation. Formally, these are different things, although in both cases the car can be taken away. Confiscation is a procedural measure within the framework of criminal law, and is carried out by a court decision in a criminal case, in contrast to arrest, which is carried out as part of enforcement proceedings, including in administrative and civil cases (fines, bank loans and others).

No one can just take a car based on the mere existence of debts! To do this, 2 important formalities must be observed:

Enforcement proceedings must be initiated against you (see the list of proceedings on the official website of the FSSP),
and as part of this proceeding, an arrest order must be issued (it is also displayed as a result of a search by full name on the bailiffs website).

Only based on the result of the decision within the framework of the proceedings, bailiffs can take away the car in 2019.

Can a car be confiscated for traffic fines?

Yes. For almost any unpaid fines, including those from auto-fixation cameras. But for this it is important to understand the terms after which the delay appeared, and how long it lasts.

These deadlines look like this:

the driver or owner is given an administrative decision with a fine and given 70 days to pay (10 for entry into force, 60 directly for payment), if the person has not appealed the fine,
after this period, the fine can be transferred to the bailiffs (and fines are not always transferred in practice),
the bailiff, who is responsible for the information about the debt, initiates enforcement proceedings on paper and is obliged to give 5 days for voluntary payment,
after this period, a decision may be made to collect funds from the debtor’s accounts - then the bailiff makes inquiries to banks (at random and not all) about the availability of the debtor’s accounts; if any are found, the money is debited from the card or accounts,
further, if it was not possible to collect the debtor’s money directly, then an arrest may be imposed, only within the framework of which the car can be taken away to be sold against the debt.

Important! If the amount of your debt is less than 3,000 rubles, then arrest cannot be imposed (Part 1.1 of Article 80 of the Federal Law). We are talking specifically about each enforcement proceeding - that is, about each unit of debt, and not the total amount of all debts.

This also applies to civil debts.

If you lose a civil lawsuit for collection

If your debt arose as a result of a claim against you by a third-party organization or individuals, then everything here is similar to traffic police fines, and the car can be taken away by bailiffs if the amount of debt is more than 3 thousand rubles.

The most common categories of debts for which FSSP cars are taken away:

recourse claim from the insurance company under compulsory motor liability insurance (a particularly common case is when the culprit did not provide a copy of the European protocol),
a claim for compensation for damage in an accident when the culprit does not have auto liability insurance, therefore, he himself is responsible for the damage.

Can they take the car for a loan if you don’t pay it?

Yes. This is a type of civil case. Moreover, we are not necessarily talking about a car loan - if any credit, loan or other obligations are not repaid, the debt can be collected at the expense of the debtor’s car. But only bailiffs. And there is a difference between a simple loan and a car loan when the car is pledged as collateral.

For a simple loan, the car is sold (sold at auction) by the bailiffs themselves, and the proceeds are used to pay off the debt. The difference then goes to the debtor's account.

In the case of a car loan, where the car is pledged to the bank, the scheme is slightly different, but even here the bank cannot simply take away the car. First, the bank is obliged to go to court to issue a ruling to recover funds from the debtor. As in all the schemes above, by court decision the writ of execution goes to the bailiffs.

But the difference here is that the seized car, which was taken by the bailiffs from the debtor, is not sold by the bailiffs themselves, but is transferred to the bank, and the bank sells it as collateral. At the same time, the buyer can transfer money to the account of the debtor directly, but only in the same bank, and the debtor will have secondary access to the account - the priority will be to write off the debt at the expense of the seized and sold car as collateral.

If a car is the only source of income

It would seem that the logic is obvious - how will the debtor pay off his debts if his only opportunity to earn money on these debts is taken away?!

The subtlety here is that if the car is the main (not necessarily the only) source of income for the debtor, then the bailiffs do not have the right to take it away. Article 446 of the Civil Procedure Code directly speaks about this.

But there is a limitation - if you have even a slightly expensive car, then they can already take it away. According to the law, for the car to be inviolable against seizure by bailiffs, its value should not exceed 100 times the minimum wage. For 2019 it is just over 11 thousand rubles. Accordingly, if your car costs more than 1.1 million rubles, then they will be able to take it away from you for debts.

How to avoid having your car seized by bailiffs?

Here we are talking specifically about the seizure of the car by the bailiffs, and not when it is pledged to the bank. The most obvious way to avoid losing your car if bailiffs take it is to get rid of it. Property that does not belong to the debtor cannot be taken away. Except for exceptions, there is an important subtlety in this matter.

According to the law, you can get rid of property in 2 ways:

But you can also rent out a car, and for free (otherwise, under the lease agreement, you will have to pay money, which must be used to pay off debts).

The subtlety is that the sale or gift of a car can be considered fictitious and illegal - only for the purpose of hiding property from the bailiffs. To do this, the bailiff sues to recognize the transaction as fictitious, and then the car will be taken away from the buyer. And imagine if on your part and his part the sale was initially in good faith!

If the car was alienated after the start of enforcement proceedings and, even more so, after the FSSP issued a seizure order, then the transaction will be declared invalid with a high degree of probability. Especially if it is proven that you continue to use the car, as well as family or other ties between you and the buyer/donor/tenant.

Other possibilities result in the inability to use the machine: