GTL Hypotheticals #1
QUESTION – What if I run a repair shop of some kind, and have possession of goods but no secured interest, and the owner of the goods has an outstanding bill?
ANSWER – If you don’t have a secured interest, you are unable to sell the goods to pay the bill (assuming the contract doesn’t cover this scenario).
You can use the debt recovery process by filing a claim, after which a judgment is obtained.
A writ for the levy of property can then be issued, with the sheriff directed to seize the goods you hold, to be sold at auction.
Should there be no other secured creditors, you will then be paid the outstanding bill plus costs, assuming there are sufficient funds from the sale to do so.
Contact our office on - 02 9922 4111 - if you wish to discuss any matters relating to debt recovery or commercial contracts.