Helpful Hints For Creditors
A few years back, Massachusetts radically changed the mechanic’s lien law. Among other things, the “new” lien law changes recording and filing deadlines and expands who can use the lien.
However, the law also makes it harder for you to collect your money by complicating timing deadlines. It requires pooling of assets with other lien creditors upon bank foreclosure and gives banks even more leverage. Despite the many faults of the new lien law, you should still use it to help protect yourself from “deadbeatitis”.
National Home Center News PRODEALERS addressed the new lien law stating:
When Massachusetts changed its law, it became more difficult for lumberyards to collect from slow-paying contractors and subcontractors. Some of the new laws, including California’s, give greater leverage to compel contractors to pay. Others, like Massachusetts’, make it tougher to do so. But credit-collections experts say dealers would do well to stay current in their knowledge of local laws if they want to harness all other means at their disposal to collect what they’re owed. (Reprinted with permission of National Home Center News).
Citing Attorney Alan M. Cohen, the article highlights some problems created by the current lien law and some proposed solutions.
Do not be lulled by the longer deadlines. File your notice of contract at the start of the job. Early filing and notification to the property owner is fairer to the owner. It also gives your customer that additional incentive it may need to pay you timely, instead of taking your money to pay your competitors or other trade debts.
Do not ignore other collection remedies. I aggressively pursue, where appropriate, ex parte trustee and real estate attachments and reach and apply injunctions. After all, it is your money. Contact us to learn about your options.
Although complicated, when properly used, mechanic’s liens can help you get paid for your product, service or equipment.
This law creates several other pitfalls. To learn more about how the mechanic’s lien law can help you collect your debts, contact the Law Offices of Alan M. Cohen LLC. Call 508-620-6900 or send us an email.