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LIGRA is here for you
Garageman lien
GARAGEMAN LIEN
Understanding New York State Lien Law for Garages: Ensuring Compliance and Recovering Costs
New York State Lien Law (Sections 184, 201, and 202) outlines the procedure for foreclosing on a garageman's lien for eligible companies that tow, repair, or store vehicles. A garageman's lien, also more broadly known as a mechanic’s lien, is used to compel the owner to settle their debt by permitting a garage to retain possession of a vehicle until the owner pays for services rendered. If the owner fails to pay, the garage may sell the vehicle at a public auction to recover the costs.
Requirements for a Garageman’s Lien in New York State
To apply for a garageman’s lien in New York, businesses must meet detailed requirements, including having an appropriate NY state business license. Maintaining continuous possession of the vehicle at the garage is also a requirement that, if not met, will compromise your ability to apply a lien.
Steps to Foreclose on a Garageman’s Lien
The basic steps to foreclose on a garageman’s lien include:
1. Notifying the vehicle owner and any lienholders
2. Advertising the lien sale in a county newspaper
3. Conducting a public auction of the vehicle
4. Resolving the debt through settlement with the owner/lienholder, sale at public auction, or transferring ownership of the vehicle to the garage**
While these general steps might seem straightforward, the actual steps required are very detailed and specific and can have consequences if not followed precisely.
Challenges and Legal Considerations
Finance companies with interests in the vehicle are often compelled by a garageman’s lien to settle outstanding debts directly with the garageman. If a settlement cannot be reached, the finance company might hire an attorney to challenge the lien's validity. In such cases, the garage would be advised to seek legal representation to defend the lien.
Leveraging Professional Assistance
To meet their requirements, garages often hire a lien processing company like LIEN ONIT, which expertly manages the timing and detailed documentation necessary for the lien application process
If you have questions about leveraging NYS Lien law to compel non-paying customers to settle their debts, contact the lien experts at LIEN ONIT at 212-653-0136 or visit their website at www.lienonit.com
Important Disclaimer
The information provided here is for general informational purposes only and should not be construed as legal advice. For any legal questions or concerns, please consult a qualified attorney.
MEDICAL PLANS AS LOW AS $800 per month
Our 2024 annual renewal and open enrollment are now open for the LIGRA Employee Benefits Program. LIGRA offers the service of establishing and maintaining a health plan that works for your business. We make it easy for you, the business owners, to obtain insurance at competitive costs.
LIGRA will continue to offer a full spectrum of plans, from broader network plans to high deductible, narrow netwo
Mandatory Sexual Harassment Policy and Training Now Required
New York State, MANDATES all employers, regardless of the company's size, must have a sexual harassment policy. Employers must also conduct ANNUAL interactive sexual harassment training and provide a written anti-harassment policy to ALL employees. To help keep you in compliance with these new regulations. Ligra is here for you, our members. LIGRA has a new sexual harassment policy with all the required forms. For more info or to order a copy, email us at chris@LIGRA.COM.
To comply with the MANDATORY interactive sexual harassment training, sexual harassment training, LIGRA will be hosting a sexual harassment training class at 7:00 PM IN OUR OFFICE.
These training classes will be held in our LIGRA Office located at 270 Spagnoli Road, Melville, NY
If you cannot make it to our office, contact us over our on-site training program.
YOU MUST RSVP in advance that you will be attending.
The cost is $35.00 per person for LIGRA members and $75 per person for non-LIGRA members.
Seating is limited. To reserve a seat, email us your name, shop, and phone# to chris@LIGRA.COM
You and ALL your employees only have to attend one class per year.
Committed to Helping Small Business Owners
The Long Island Gasoline Retailers Association is a non-profit trade association located in New York State. We've worked across the state and locally for 86 years to aggressively defend the small-scale, independent business owners who comprise our membership.
Creating Solutions for Small Business Owners and Operators
Because there are so many challenges in operating a business, we're fully committed to helping owners ease those challenges by lowering overhead costs through our Worker Safety Group, legal plan, and sponsored educational seminars. We even offer health insurance plans specially chosen according to their usefulness to small business owners. LIGRA's experienced health insurance broker, as well as the assistance of a health insurance advocate, is provided free of charge to any LIGRA member who gets their health insurance through the association.
The savings in overhead costs more than justify the dues each member pays, so we're sure you'll be pleased with our services.
We have health insurance plans available for LIGRA members, and we e confident that you'll find the plan you need at a relatively reasonable rate.
Business owners take precedence.