The
Garage Keepers Lien Act and the common law which
underlies it, gives you more rights to get paid than a bank, or
GMAC, or Ford Credit, or the tax man, or even a bankruptcy
trustee!
Garage Keepers liens place you in first place
among any creditors attached to the vehicle for a
six-month period. This period can be extended in
certain circumstances where the debtor is avoiding
seizure.
To register the lien you need (1) the name
and address of the registered owner/lessee, (2) the vehicle’s
VIN, and (3) the amount of the indebtedness.
For your lien to be valid, you must:
- have had the owner or their agent sign an
acknowledgment of the amount of indebtedness when they took
possession of the vehicle.
- register your lien within 21 days of surrendering
possession of the vehicle. It is in your interest to file the
lien as soon as possible since legitimate liens or ownership
interests created between your surrender of the vehicle and
registration of the lien will be the only ones which have
precedence over your valid garage keeper’s lien.
Always record the VIN on work orders! Always
use a work order that has an acknowledgement of indebtedness
included in it! Always have the customer sign the
acknowledgement upon pick up of the vehicle (after the amount of
indebtedness has been determined)!
Be aware that enforcing your lien can cost up to $1200 but that
those costs can be recovered from the vehicle. If the vehicle is
not worth $1500 more than the repairs performed don’t release
the vehicle until you have been paid!