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Mechanic’s Liens, Often Overlooked, Provide a Basis of Collection if Done Promptly and Properly

Mechanic’s Liens, Often Overlooked, Provide a Basis of Collection if Done Promptly and Properly

Contractors, subcontractors, and suppliers may not know about an important legal avenue for recovering debts. Mechanic’s liens are a good way to form a basis of collection on a property; very simply stated a lien can be placed on a property if the people involved in remodeling or improvements are not paid.

Preparing and enforcing Mechanic’s Liens are highly technical involving strict criteria and stringent and unforgiving deadlines.. The entity seeking to enforce a mechanics lien must provide notice to the owner of the property, file a claim, and file a lawsuit all within a tight timeframe if this is not done adequately, the lien will not apply, and contractors and suppliers could lose what may be their only avenue for collection.

Mechanic’s liens work well because they encumber the property to which value has been added, which may lead the general contractor and/or property owner move swiftly to pay the amount of the lien. Nothing can happen with the property until the lien is dealt with unless a mechanic’s lien bond is filed.

A mechanic’s lien may also get the attention of the bank or other construction lender, which can motivate debtors to pay up quickly.

By filing a mechanic’s lien, you are giving the property owner and general contractor a time frame in which they must either pay the lien or face litigation to collect a construction debt. This puts the expectations and schedule of getting paid back into your control, which may help to  recover debt.

Everyone involved will want to clear out the debt for various reasons — homeowners will want their property unencumbered, general contractors will want to keep up good relationships with property owners and lenders to protect their reputation as well as make sure that there is no impairment of their collateral.

Again, none of this can happen if the lien is filed incorrectly, or outside the correct timeframe. So, how can you ensure that your mechanic’s lien is set up promptly and properly?

The Law Offices of Alan M. Cohen LLC is well versed in filing and enforcing mechanic’s liens. Attorney Cohen knows exactly when and how to file the appropriate notices and other paperwork to ensure that all aspects of your lien are legally correct to increase likelihood of enforcement of same.

The Law Offices of Alan M. Cohen LLC can advise you about the best ways to recover debt, including mechanic’s liens. Call us at 508 620 6900 or email us at alanmcohen@collections-law.com today to learn more.

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