Can a mortgaged vehicle be enforced?

1 Answers
JulietteAnn
07/30/25 1:55am
A mortgaged vehicle can still be subject to compulsory enforcement. Reasons: For a vehicle purchased through a mortgage by the person subject to enforcement, the ownership still belongs to them. The court can legally implement measures such as seizure, impoundment, and auction of the vehicle during enforcement. However, from the proceeds of the auction, the mortgage debt must be repaid first, and the remaining balance can then be handed over to the applicant as the enforcement payment. Guarantee Law: Article 33: The term 'mortgage' as used in this Law refers to the act where a debtor or a third party does not transfer the possession of the property listed in Article 34 of this Law but uses such property as collateral for a debt. If the debtor fails to fulfill the debt, the creditor has the right to be preferentially repaid from the proceeds of the property through discount, auction, or sale in accordance with the provisions of this Law.
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