Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. Do you have any terms and conditions that let you exercise a lien over the vehicles? Are the vehicles worth more than your debt? Kind regards AJ
Hi, Thank you. Without a lien in your terms and conditions for the unpaid debt, I am afraid any liquidator would be able to come and take the vehicles. You would then have to register your debt in the liquidation. What is the difference between the value of the cars and your debt? Kind regards AJ
Hi Thank you. The company could do this but they risk committing what is known as a preference (S. 239 of the Insolvency Act 1986) - if they do this and the liquidator finds out, be prepared for an argument with the liquidator over returning the vehicles or proceeds of sale from them. Kind regards AJ
Hi, Thank you. Yes if they have not been paid for and they can be removed without damaging the vehicle. Kind regards AJ
Hi, Thank you. ***** would not do this, that would potentially be viewed as fraud. If you want to take ownership of the vehicles all you can do is ask them to be assigned to you in lieu of the date and then take your chances with the liquidator. In the mean time remove any parts that have not been paid for to reduce what you are owed. Anything you do that is aimed at deliberately avoiding the liquidator can potentially be challenged. Kind regards AJ
Hi, Thank you. No that would not be legal, especially if the liquidator challenge that transaction or the company was contemplating liquidation at the time of the transfer. Are they offering you the vehicles in exchange for the debt?
Thank you for a preference (or what is known as a transaction at an undervalue) it would be the 12 month period immediately preceding the date that the winding up order (i.e date of the liquidation) is made.
If you are holding the vehicles in lieu of payment I suppose there may be a criminal issue here, but you could always say that you are with holding them as a result of the dispute and therefore may need to remove your parts from them if payment is not going to be made.