Can a car mortgaged to a rental company at a court auction be mortgaged?

If a vehicle at judicial auction is mortgaged, the court may auction the vehicle, but the proceeds from the auction shall give priority to repaying the creditor's rights of the pledgee, and then repay other creditors' rights.

Regulations of the Supreme People's Court on Several Issues Concerning the Enforcement Work of People's Courts (for Trial Implementation).

The People's Court may seize or detain property owned by other persons with mortgage rights, pledge rights or lien rights. The proceeds from the auction or sale of property shall be used to pay off the creditor's rights of the person applying for execution after the mortgagee, pledgee or lien holder receives priority.

The above knowledge is the editor’s answer to the question “How to deal with mortgaged vehicles in judicial auctions”. If the vehicle at judicial auction is mortgaged, the court can auction the vehicle, but the money raised from the auction will give priority to repaying the pledgee's claims before repaying other claims. Readers who need legal help are welcome to go to Hualv.com for legal consultation.

If you have any questions about the above, please get in touch.

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Citation of law

[1] "Regulations of the Supreme People's Court on Several Issues Concerning the Enforcement Work of People's Courts (Trial)"

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How to handle vehicle mortgages at judicial auctions

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