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Not sure what to do
My debtor's goods belong
to a third party - what can I do?
Interpleader proceedings
Interpleader proceedings can be expensive, because if the Court decides that the third party owns the goods, then you, as the person disputing the claim, will be responsible for the legal costs of the third party, Sherforce, and your own legal bill!
Even if you "win" the day, and the Court agrees with you that the goods belong to the judgment debtor, and should therefore be removed and sold, you will still have your own legal costs to pay, and those of Sherforce - although Sherforce does offer fixed pricing for standard Interpleader applications - for details of this pricing click on SHERFORCE INTERPLEADER PRICING.
If course, you can ask the Court for an Order that the third party pay your costs of the Interpleader proceedings, but inevitably third parties disappear, are impecunious, or put up defences to paying which means it can be a long drawn out process.
Ultimately your decision on whether to dispute the third party's claim has to be a commercial one. You should consider carefully, the amount of your judgment, the amount which Sherforce says is now due, which will include all the accrued interest, and Sherforce charges, and then compare these amounts against the valuation Sherforce has given you for the goods if they were to be sold at auction.
Are you going to net sufficient proceeds from the auction sale, to cover your judgment debt, and Sherforce charges? Are you prepared to take less, or are you prepared to settle with the judgment debtor, for something less.
These sorts of questions can be solved with the help of your professional advisor and we do recommend in Interpleader proceedings that you seek independent legal advice before making any decision to dispute a third party claim.