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In most instances no.

Your father, by making himself the lienholder of the car, is indirectly protecting you from creditors by making himself the first collector on the value of the car. Because he is first in line (as the lienholder), there is a low likelihood that any other creditor will try to take the asset in order to pay existing debt.

To complete the process, however, you must be making monthly payments (even if only $1 per month) to your father in order to demonstrate the lienholder status. The "loan" should not last for more than seven (7) years.

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Q: Can a company take away your car if your father gives you a car that he has fully paid for and made himself the lienholder?
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