I'm well into the sixth year of a 7 year hire purchase agreement. I have recently made a series of defaults due to slow business. The owner of the goods now wants them back. I need the goods to continue running my business and will suffer significant loss if they are repossessed. What can I do?
Lawyer Answers (1): Answers from lawyers are general preliminary responses. They are not formal legal advice and cannot taken account of all your circumstances. They do not create a lawyer–client relationship.
Answer by Shamaila Khan, Kingsville 3012 VIC
- Since you are in year 6 of a 7 year agreement the goods will be classed as protected goods.
- The owner will need to obtain either a court order or your consent to legally repossess the goods.
- If you have been given a formal notice indicating that the owner wants to repossess the goods and your attempts to re-negotiate an agreement with the owner have failed you can seek an urgent injunction from the court to prevent the owner from taking repossession.
- In your application for an injunction you will need to:
- explain the reasons for your default;
- provide evidence that you will be able to make good on the outstanding payments within a reasonable amount of time; and
- clearly detail how and why you will suffer significant loss if the goods are repossessed.
- Provide as much evidence to support your application as you can to increase your chance of the injunction being granted. It is highly recommended you seek legal advice and representation to assist with the application.