Company gone into liquidation owing me money

Discussion in 'Insolvency' started by Alan harrison, Feb 25, 2018.

  1. Alan harrison

    Alan harrison UKBF Newcomer Free Member

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    • Hi I'm new here and have a question about a company we used to repair vehicles for. Basicly the company has gone into liquidation and owes me money for repairs that were done to two vehicles that I still have on my premises. Now as much as I know is that the liquidators now own one of the vehicles and a finance company owns the other. I know that it is likely that we won't see a penny of what we are owed as by the time everyone up the chain has had their bit there will be no money left.my question is ,can I refuse to let these vehicles go until my money is payed back. Do I have any legal right to keep hold of them while I'm owed money,and they are on my premises. I might add that both these vehicles are not road worthy at the moment so are in my opinion only worth scrap value . Any advice appreciated
    • Alan.
     
    Posted: Feb 25, 2018 By: Alan harrison Member since: Feb 25, 2018
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    9,049 915
    No.
    Your claim on the assets of the company in liquidation is no higher than others. And one of the vehicles belongs to another company who hasn't done anything.
    The liquidator will sell the vehicle the company owns and distribute the money along with any other money between creditors. After their own fees are covered.
    The liquidator cannot give you preference over other creditors.

    Company goes under its often multiple creditors and can be considerable sums owed. If you have credit insurance you claim on that.
    Otherwise you may well have lost most or all the money owed.
     
    Posted: Feb 25, 2018 By: Mr D Member since: Feb 12, 2017
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  3. Alan harrison

    Alan harrison UKBF Newcomer Free Member

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    Thank you Mr D for your speedy reply . We have come to terms that we are probably not going to see the money and luckily for us it's not a lot compared to other garages that also carried out repairs for them . But one thing I hadn't heard of is credit insurance. So I will look into this for future safety/security .
    Again thank you
    Alan.
     
    Posted: Feb 25, 2018 By: Alan harrison Member since: Feb 25, 2018
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  4. KAC

    KAC UKBF Enthusiast Free Member

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    Unusually I don't agree with @Mr D
    Possession is 9/10ths of the law and if you have carried out repairs to the vehicles, it is possible that you can claim a lien over them. Have a look at this article. You really need to speak to your lawyer but make sure he knows about bailment and liens.
     
    Posted: Feb 25, 2018 By: KAC Member since: May 7, 2017
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  5. Mr D

    Mr D UKBF Legend Free Member

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    Thanks KAC, had forgotten about liens.
    Not entirely convinced the OP can get away with that but its possible I suppose.
    Hmm.... with the liquidator not having possession of the financed vehicle would it be up to the finance company what happens to that vehicle and liquidator cannot do anything?
     
    Posted: Feb 25, 2018 By: Mr D Member since: Feb 12, 2017
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  6. Gavin Bates

    Gavin Bates UKBF Regular Free Member

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    Do you have any terms and conditions to hold on to the cars if you haven’t been paid? Most garages do.

    If not you may want to speak to the IP and finance company as they may be prepared to do a deal. I am assuming the value will increase if the repairs are done?

    Regards

    Gavin
     
    Posted: Feb 26, 2018 By: Gavin Bates Member since: May 9, 2016
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  7. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

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    I agree you should look at the possibility of whether you have a lien failing which you remain an unsecured creditor in the Liquidation and I suspect little prospect of getting any money back.
     
    Posted: Feb 26, 2018 By: Lisa Thomas Member since: Apr 20, 2015
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  8. Awinner2

    Awinner2 UKBF Regular Free Member

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    If your terms include "goods supplied remain the property of the business until paid for" or similar, remove any parts that you have fitted before vehicles are recovered from you.
     
    Posted: Feb 26, 2018 By: Awinner2 Member since: Aug 4, 2017
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  9. KAC

    KAC UKBF Enthusiast Free Member

    911 204
    Actually better to exercise a lien and not allow them to recover vehicles until you have been paid in full. Also consider storage charges if there is a delay
     
    Posted: Feb 26, 2018 By: KAC Member since: May 7, 2017
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  10. Alan harrison

    Alan harrison UKBF Newcomer Free Member

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    Thank you all for your replies .. I have tried to find out online about a lien , but if I'm honest I don't understand how it works . One artical I read said a lien can be overruled by a liquidator,so I've been in touch with a solicitor today who is putting me on to someone who knows all about lien and bailments tomorrow .So I will see what he or she has to say.
    Thank you again for all your advice.
    Alan.
     
    Posted: Feb 26, 2018 By: Alan harrison Member since: Feb 25, 2018
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  11. KAC

    KAC UKBF Enthusiast Free Member

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    Let us know how you get on. We know the theory but would be good to know how it actually works in real life ;)
     
    Posted: Feb 26, 2018 By: KAC Member since: May 7, 2017
    #11
  12. Alan harrison

    Alan harrison UKBF Newcomer Free Member

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    Goes without saying I will keep you all informed how I get on .
    Alan.
     
    Posted: Feb 26, 2018 By: Alan harrison Member since: Feb 25, 2018
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  13. Simon Green

    Simon Green UKBF Regular Free Member

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    But be very careful to access accurate and professional advise before acting further>
    I have a business associate who faced a similar situation and held onto the goods; problem was the other side had paid via business credit card for part of the work completed. What happened next was not something that had been anticipated:
    What’s termed by Mastercard and Visa a CHARGEBACK was initiated by the other side and all payments were reversed within 30 days.
    This isn’t the place and forum to discuss CHARGEBACKS in full but the process was initiated by a so called customer really stings painfully like a Queen Bee!!! The whole process seems to assume the merchant is guilty until they can prove innocence.
     
    Posted: Feb 27, 2018 By: Simon Green Member since: Dec 4, 2017
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  14. Alan harrison

    Alan harrison UKBF Newcomer Free Member

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    Hi all.. just thought id update you on the situation.. luckily for us and i mean luckily. We came out of this smelling of roses. The finance company that owned one of the vans ,paid the outstanding balance including storage charges then came and took the van away . At first they were wanting to pay by card over the phone but after reading about chargebacks on this forum (thanx) we instructed them we would only accept a bank transfer, and they agreed and paid no trouble. The second van was owned by the liquidation company and it would appear that because i refused to tow it to the adress they were going to hold the vehicle auction, they lost interest in it . We contacted them several times and left messages but no one got back to us. Meanwhile after the auction of vehicles an independent ambulance company from london who had purchased 3 vans from the auction contacted me to ask if we were interested in repairing one of them as it was a none runner,so they could drive it back instead of having it recovered back to london. After conversating with the owner i happen to mention thst we still had an ambulance on premisis,and he became interested in buying it . I passed him the liquidation company details and he contacted them . Next i receive an email off liquidation company saying the vehicle is not valued to the amount owing on it and is now our possession. I contacted the guy in london and ssked him if he was still interested in the ambulance , and he has asked us to quote the work to put the vehicle back on the road .. so thats were we are up to. If the price is right he will pay the outstanding bill and the price to repair the van . So its not all bad . Thanks to all who gave advice to us ..it always pays to ask questions and not persume theres nothing you can do .
    Alan&Alex
    A&A motors.
     
    Posted: Apr 30, 2018 By: Alan harrison Member since: Feb 25, 2018
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  15. Awinner2

    Awinner2 UKBF Regular Free Member

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    Excellent result for you and glad that this forum could help you out of a sticky situation
     
    Posted: May 2, 2018 By: Awinner2 Member since: Aug 4, 2017
    #15