Proposed Writ Of Seizure & Bankruptcy From Motor Shop

[Wan Oyip]

Dear Brothers ,

 

I have an issue .

 

The story will be brief here.

 

My bike was under C.O.I from a guy . I am the owner . He default payment and bike was reposessed by Bike Shop .

Total outstanding of the bike is 17k in total now . Bike shop demand payment of 7k upfront and installment of 10k .

They mentioned if i do not settle the 7k upfront , they will bring the matter to court and demand a seizure of writ and

bankruptcy from me . I do not have a house and the gurantor is my mom . So the bike shop mentioned that they will auction off

all the items from my parents house accordingly .

 

Issit true it can happen ?

 

Anyone who has encounter this and able to explain and advise ?

 

I appreciate those kind comments from the kind souls.

 

Thanks & Ride Safe

[mechwira]

i believe that if they get a court order, and with your mum as a signed guarantor, then yes they technically go after your mum's property. your COI agreement counts for nothing as the money owed is strictly between you and the shop, your buyer was purely in confidence between the two of you.

 

however... typically the shop is trying to employ scare tactics first to get you to cough up money owed. it is easiest for them if you give in and pay as ordered and then they hand over the bike to you.

 

the thing is, if they go to court, the court will calculate the money owed and will take into consideration market value of the bike which can be used to offset money owed. the shop will end up with the bike and balance of money after deducting. and then yes they can go after you and your mum. and this entire process not as easy as they make it sound, like as if they can simply come to your house snatch stuff and auction off. but again, technically with a court order it can be done.

 

the shop doesnt want the bike and all that hassle, they want full payment from you. i'll bet they will (or have already) calculated extra interest or default payment fees, which they will claim to waive if you follow the payment as ordered. on top of the scary stuff they have already told you.

 

Bottomline: yes they can get court order to go after you and your mum, but the figure they can go after and the process they have to go through is not as simple as what they currently say, although how big of a difference, even if you tell me your bike model and age i can only guess.

Edited January 27, 2016 by mechwira

[mechwira]

BTW, just to tell you the most likely thing to happen if you really don't pay off:

 

shop has to wait a period of time before they can take any action. i don't know our law is for how long. all the while, you continue owing the shop, and additional interest and/or late payment payment fees according to original agreement are enforced. remember this is according to the agreement, not they anyhow decide on the spot.

 

when this period of time has passed, you officially default payment. the shop can now begin repo of your bike (not you or your mum's property).

 

shop repo your bike. whether bike is sold or not, when the bike is officially repossessed, the creditor must calculate the balance owed after market value of bike is offset.

 

you now owe the creditor this balance, and is treated like any other loan, at this point they still cannot go your house snatch stuff for auction. you simply have a record of owing a debt. however, note that when this happens, you now have a bad credit rating, and this bad rating can stay for quite a long time even if you immediately clear payment.

 

if you continue to default this payment, only then can the shop bring to court to order a repo of other property to pay money owed. and they have to engage lawyer to do so.

 

so you see, the shop confirm don't want this hassle. but due process does exist for the shop to recover money owed.

[Wan Oyip]

Thanks Mechwira for your humble reply . Appreciate That .

 

God Bless

[GuiNNeSS]

Ok. From Letter of Demands, to Default Judgment, To Writ of Sizure and Sale and Bankruptcy.

 

In the hands of an efficient Legal Secretary. Will only need 7 Days from Letter of Demand to Judgment and Writ of Sizure and Sale. Probably another month or more to Banruptcy because they will need to add on all the other costs to 10k.

 

Maybe got services go your house, services find the bike. whether find of not and it wont be market value you think of, its the market value among the bike shop, which is sure gong to be only the PARF value of your bike. that is the most basic of basic.

 

Than of course, every letter sent to you, the engagement of Legal firms and lets say the Legal Secretary Time clock and the Lawyer. Lets just say. For an outstanding of 7k. The other 3k, can be added on within a month. Swee Swee can size your bike. Bankrupt you still and go after the Garantor for the same.

 

In 3 months time, the bike shop earns Triple, from just selling you a bike.

 

And yes. They can go after your mother and the contents in your mother's home. And it will be another set of legal cost from you and your family if you need to prove that the items does not belong to your parents.

 

Have seen it happened.