Mirolla

Plaintiff Victor Mirolla appeals an order of the superi- or court declaring defendant Larry Mendez’ vehicle exempt from execution. The issue is whether unperfected liens are included in the exemption provided in Code of Civil Procedure section 690.4 for the first $2,500 of value “over and above all liens and encumbrances” on certain items used by the debtor in his trade or profession.

In October 1978 plaintiff brought an action against defendant in which he alleged that defendant had sold him a stolen vehicle. On October 25 the parties settled the suit for $7,000. The sum was to be paid by defendant in monthly installments of $500, but if defendant defaulted judgment could be entered against him for the unpaid balance plus interest and attorneys’ fees. Defendant failed to make the payments, and in August 1979 plaintiff secured a judgment against defendant for $7,000 plus interest and attorneys’ fees.

Defendant was in possession of a truck bearing Oregon license plates. Plaintiff’s attorney was informed by Oregon’s Department of Motor Vehicles that the truck was registered in Oregon to defendant at his Glendale, California, address, that defendant “had clear legal title…