When you’re struggling to collect on a business debt, sometimes, you need to rely on effective tools and creative strategies. Our aggressive and relentless commercial collections attorneys have more than 50 years of combined experience.
They employ innovative and ethical debt collection tactics, as allowed under state and federal laws to facilitate payments for their clients in Massachusetts. Mechanic’s liens and payment bonds are two powerful options available under Massachusetts law.
Our experienced mechanic’s lien attorneys can prepare and have recorded all necessary documents to perfect a mechanic’s lien to secure your interest and hopefully get you paid.
What is a mechanic’s lien?
Under Massachusetts law, a mechanic’s lien provides holders with a legal claim against a property for those who haven’t been paid for doing work that improves the property. A mechanic’s lien gives contractors, subcontractors, and suppliers a potential security interest in the property that they’ve worked on or to which they supplied materials. It effectively secures the debt against the property.
However, strict adherence to filing deadlines and mechanic’s lien procedures is required for a mechanic’s lien to be successful. Our experienced Massachusetts mechanic’s lien lawyers can help you make sure that you comply with administrative requirements to give you the best chance of success for collecting on your debt.
What is a payment bond?
A payment bond, or a surety bond, is a bond that guarantees that subcontractors and suppliers will be paid, even if the contractor defaults. Under Massachusetts laws, a surety bond financially guarantees payment, but without placing a lien on the property.
Can you use both in Massachusetts?
Yes, you can use both a mechanic’s lien and a payment bond in Massachusetts. Each serves different purposes and can be used in different situations. Mechanic’s liens are for private as opposed to public construction projects, while payment bonds are often required in public construction. Using both can maximize your chances of getting paid.
What legal actions are available if payment is not received?
If you don’t receive payment after filing a mechanic’s lien or claiming against a payment bond, you have several legal options. Under a mechanic’s lien, you must timely bring suit to enforce your lien and after you prevail the Court would issue a warrant of sale which would allow the sheriff to sell the property, similarly to the use of an execution after prevailing in a non-mechanic’s lien suit. The reason that it is different is because, absent you having a direct contract with the owner, you have no contractual privity with the owner and thus cannot obtain a judgment against the owner which you can enforce on all of the owner’s assets. Rather the warrant of sale is property specific. Filing a lawsuit is also necessary to enforce a payment bond when payment is not forthcoming.
In either a mechanic’s lien or a payment bond, securing an experienced commercial collections attorney can help your collect your construction related debts. A lawyer can take steps to negotiate payment of the debt, as well as provide counsel and advice through the next steps if negotiations fail.
How can an aggressive and relentless collections attorney help?
An experienced collections attorney can guide you through the complexities of both mechanic’s liens and payment bonds. With over five decades of combined experience, the Law Offices of Alan M. Cohen & Associates LLC’s commercial collection litigators fight to get you paid. Our relentless pursuit ensures that you have the best chance of recovering your money.
Let us help you with your unpaid debts so that you can focus on running your business. To schedule a consultation, contact us by calling 508 620 6900 or sending us an inquiry through our website.