What happens when I take a Garage to court advice

[Pogo_Stix]

Hi all

 

Can I ask a question.

 

If I were to take a garage that was a Limited Company to court for failing to carry our repairs to a satisfatory standard which then went on and caused engine damage and the judgement went in my favour, what would happen if the garage failed to pay.

 

Now i understand that the court would issue form, my question is rather if ballifs were appointed then what in theory could they seize.

 

Thanks

 

Richard

[buzby]

Anything that would reach the value of the debt if sold, including tools, plant and office equipment - however it is usually the presence of the bailiff that causes the debt to be paid in cash.

[Pogo_Stix]

Yes that was my beleif, then someone said they could not take anything that belonged to the bussiness unless it was an HM Revenue & Customs court order.

[buzby]

Providing the FIRM was the subject of the action, then they can take walking possession. HM Customs have their own criteria, but it does not mean that the only way to enforce against a business is if the C&E arrange it, that's just perverse!

[Pogo_Stix]

Providing the FIRM was the subject of the action, then they can take walking possession. HM Customs have their own criteria, but it does not mean that the only way to enforce against a business is if the C&E arrange it, that's just perverse!

 

So basically it goes back to what you said before then.

[buzby]

In essence, yes - unless they can prove the goods in their posession don;t belong to them or are hired/rented and there are no assets to cover the debt. (In the same way the C&E bailiffs would be stuffed too!).

[mightymouse_69]

I didn't think bailiffs could take "tools for your trade"...

[buzby]

A limited company (incorporated entities) does not have any protection like this, only individuals, even then it is limited to 'reasonable' tools.

[wheelergeezer]

Word of warning. I have been in the car dealing trade in the past and know many of the tricks used.

 

IF and I do say IF I was the garage, I would have set up the company as follows:

 

1. Joe Bloggs Garage Ltd owns nothing at all.

2. Me personally owns the premises, tools, lifts, teapot etc etc. I would then rent the entire lot to the LTD company for a fee equivalent to its takings. So, if I took £2,500 this week, the rental would be 100% of the takings after the VaT is paid. I get the income, the garage gets nothing.

 

The reason? If the company ever gets sued, it has no assets. You cannot take what does not belong to the Ltd company.