GARAGE KEEPER’S LIENS

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.

1. have had the owner or their agent sign an acknowledgment of the amount of indebtedness when they took possession of the vehicle.
2. 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!

ASRA will register Garage Keeper’s Liens for $8.21 for members. Ž