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Lien

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  • Lien

    A garage repaired a vehicle but the customer didn’t pay so the garage owner placed a lien on the vehicle and kept the vehicle awaiting payment.

    Question:

    Does the Lien have to be registered in a Court of Law?

    Having kept the vehicle the limited company that owned the vehicle goes into liquidation. The garage owner awaited contact from the liquidators or official receiver thinking they would collect the vehicle to liquify the company’s assets but no contact was ever made presumably because the garage was not listed as a creditor. The liquiation is now complete and the liquidators have been discharged,

    The vehicle is now just taking up space, what options are open to the Garage?
    Last edited by EnglandPi; 9th July 2021, 16:33:PM.
    Tags: None

  • #2
    Liens are not registered with a court.
    If the lien is not contractual the garage need to apply to the courts for an order of sale.
    The court will then direct what should happen to any monies obtained in excess of that owed to the garage

    At least that's what I think should happen!

    Comment

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