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ARTICLE · 12 JUNE 2014

Getting Paid: Mechanics' Liens

It is not uncommon for tradespeople, professionals and businesses alike to encounter customers who refuse or neglect to pay their bills.

CanadaFinance and Banking
Carl May
Carl May

It is not uncommon for tradespeople, professionals and businesses alike to encounter customers who refuse or neglect to pay their bills. Although a lawsuit is always an option in these scenarios, many simply choose to write off the loss as bad debt rather than throw good money after bad, especially when a debtor has relative few assets and a lawsuit might result in a dry judgment.

Fortunately for mechanics, however, the British Columbia Repairer's Lien Act provides a method for securing payment of unpaid bills without having to commence a lawsuit. The Repairer's Lien Act gives a mechanic a lien on the vehicle he or she has repaired for the total cost of the repairs, and the mechanic is entitled to sell the vehicle to pay the debtor's bill if the bill is still unpaid 90 days after it was rendered.

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