# Mechanic's Lien



## WilliamH (Nov 17, 2007)

I recently had to put a mechanic's lien on a home I just completed. The homeowner claims she is going to file bankruptcy soon and is included me in the filing. Can she do that? I was under the impression liens can't be included in bankruptcy.


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## Grumpy (Oct 8, 2003)

You are a creditor and she owes you money thus you can be included, however the mechanic's lien just gives you that much more power should the house be sold to cover the debts.


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## Ed the Roofer (Dec 12, 2006)

A Mechanics Lien is on the Property, NOT the HomeOwner, which is a slight difference.

Speak with a local attorney for your local jurisdictional advice though, rather than opinions from other contractors.

Ed


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## WilliamH (Nov 17, 2007)

Ed the Roofer said:


> A Mechanics Lien is on the Property, NOT the HomeOwner, which is a slight difference.
> 
> Speak with a local attorney for your local jurisdictional advice though, rather than opinions from other contractors.
> 
> Ed


As this was my first time filing a mechanic's lien, I used an attorney. I wanted to be sure everything was done correctly. My cost to date for the attorney is $600.00 for a debt of $3,200.00 owed to me. I thought about calling the attorney and get his thoughts about the potential bankruptcy, but it will probably cost me another $200.00.  I can't remember the last time I was this MAD. This was an insurance job. I was contracted to install a new roof, siding and gutters. I collected half the money up front. The homeowner said she would pay the balance of the roof after I dropped the material for the siding. Well, after dropping the material for the siding (after completing the roofing) she told me "something came up and she didn't have the balance of the money at the time" (her first check from the insurance company was plenty to cover the balance of the roof). To make matters worse, I requested the depreciation from the insurance company (about another $900.00). That check came in about 2 weeks ago and she has not given that to me either. I don't remember ever being so P***ED OFF. She might as well have stolen $3,200.00 from my pocket.


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## Tiger (Nov 21, 2007)

WilliamH said:


> I don't remember ever being so P***ED OFF. She might as well have stolen $3,200.00 from my pocket.


There's no justice in contracting. If she took the money from a bank she'd be in jail.


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## Tiger (Nov 21, 2007)

WilliamH said:


> This was an insurance job. I requested the depreciation from the insurance company (about another $900.00). That check came in about 2 weeks ago and she has not given that to me either.


Seems like insurance fraud to keep a check that the insurance co issues to pay a contractor. Maybe your State Attorney would like to know about it.


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## Chris Johnson (Apr 19, 2007)

Doesn't this just kill ya, I understand why your pissed off. But why on God's green earth do people sign contracts knowing full well they are going to **** you?


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## nEighter (Nov 24, 2008)

hand in there buddy.. there is a dark HOT place in hell for these people.. I know of a couple that are going there myself


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## WilliamH (Nov 17, 2007)

*Still really p****d*

I'm going to knock on this lady's door again tomorrow and she if she has the last check from the insurance company (a little over $900.00). I know I'm just rambling here, but I need to vent some more. What really makes me most angry is that this lady has not apologized once for not giving me my money. I just started my business a little over a year ago. Things are REALLY tight especially with this economy. I know it doesn't sound like much, but the nearly $4,000.00 I'm out in this deal would carry me a good part of the slow months. I'M SO  I CAN'T SLEEP AT NIGHT. She has taken my money and caught up her mortgage and bought Christmas for her family while I'm struggling to pay my bills and bought my wife a toaster for Christmas. That's a bunch of BS! I have no clue how to rid myself of this anger.


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## Ed the Roofer (Dec 12, 2006)

*See below to download clip art *



*I didn't say anything. :whistling*

*Ed*


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## nlgutters (Dec 18, 2007)

WilliamH said:


> I'm going to knock on this lady's door again tomorrow and she if she has the last check from the insurance company (a little over $900.00). I know I'm just rambling here, but I need to vent some more. What really makes me most angry is that this lady has not apologized once for not giving me my money. I just started my business a little over a year ago. Things are REALLY tight especially with this economy. I know it doesn't sound like much, but the nearly $4,000.00 I'm out in this deal would carry me a good part of the slow months. I'M SO  I CAN'T SLEEP AT NIGHT. She has taken my money and caught up her mortgage and bought Christmas for her family while I'm struggling to pay my bills and bought my wife a toaster for Christmas. That's a bunch of BS! I have no clue how to rid myself of this anger.


I'm currently going through the same thing but mine is closer to 30k. All you can do is hope for the best. This stuff happens in business to everyone. You can do everything in the world to protect yourself but a contract is only as good as the person who signs it. Good luck and don't worry it always works out.


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## Chris Johnson (Apr 19, 2007)

If she's paid her mortgage, lien the ****in place, that'll get her attention. $ 9.00, $ 900.00 or $ 90,000.00 I don't care


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## WilliamH (Nov 17, 2007)

Ed the Roofer said:


> *See below to download clip art *
> 
> 
> 
> ...


That's funny, Ed. That's why I can't sleep. I keep dreaming of the different things I'd like to do.


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## WilliamH (Nov 17, 2007)

Chris Johnson said:


> If she's paid her mortgage, lien the ****in place, that'll get her attention. $ 9.00, $ 900.00 or $ 90,000.00 I don't care


I filed a lien. She is now claiming she is going to file bankruptcy and will include her debt to me in the bankruptcy. I'm not exactly sure how a bankruptcy works, but I believe there are scenarios where I won't get a dime. Besides, I need the money now. As all of you know, even when business is down, some of the overhead still exists.


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## WilliamH (Nov 17, 2007)

nlgutters said:


> I'm currently going through the same thing but mine is closer to 30k. All you can do is hope for the best. This stuff happens in business to everyone. You can do everything in the world to protect yourself but a contract is only as good as the person who signs it. Good luck and don't worry it always works out.


Sorry to hear that...that's a lot of money.


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## thom (Nov 3, 2006)

WilliamH said:


> I filed a lien. She is now claiming she is going to file bankruptcy and will include her debt to me in the bankruptcy. I'm not exactly sure how a bankruptcy works, but I believe there are scenarios where I won't get a dime. Besides, I need the money now. As all of you know, even when business is down, some of the overhead still exists.


I've done the lien thing a few times. Understand state laws vary so yous may be different. 

A lien is a public notification of a claim that is secured by the house. It holds your place in line. If/when the owner wants to sell, the lien must be paid in order for the buyer to get clear title. A lender would insist on clear title. A lien is good for a limited amount of time generally 2 to 3 years. It can be renewed, generally once. At the end of the time, it expires and does not exist. 

If the house is not sold, you must sue to collect, or perfect the lien. Win the suit and the house is the collateral that you can go after. If you are not first in line, you must buy out any of those in front of you before you can have the collateral auctioned off. This means paying off any mortgages that were filed prior to your filing your lien. 

If the woman files for bankruptcy, there probably is no equity in the house and nothing for you to go after. She new up front this would happen but this way she gets her house fixed and puts money in her own pocket. She didn't do this to hurt you, in fact she never even considered you, this is all about her. 

good luck.


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## Fence & Deck (Jan 23, 2006)

Laws in every state and province are different when it comes to construction leins. If you don't want to consult a lawyer, the information should be readily available n the Internet.

I don't want to throw salt in the wound, so to speak, and I am sympathetic, but this will NOT be the first time you get hit like this. It will absolutely guaranteed happen again. Just like retailers have the cost of "shrinkage" (lost stolen or damaged inventory) built in to their overheads, you have to incorporate into your overhead.
4 years ago, I had a guy refuse to pay me almost $4000. He must have been happy with the job, because he tipped the carpenter $300 cash.I leined the property, then sued in small claims, forced the sale of his house, and recovered all my money plus interest and expenses. Final payment to me: $7800.00!


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## MarkNoV (Apr 29, 2006)

Like Stone said laws vary but one of the fundamental principles of bankruptcy law is that debts incurred to obtain "necessities of life" (food, clothing and shelter) are not discharged by bankruptcy. Sears is famous for claiming that clothing and furniture purchased on credit fall under this category.

I have had a few of my tenants declare bankruptcy, and every time I have succeeded with this argument.

As one of the named creditors you will be contacted by the trustee. You can then state your intention to contest the discharge of your debt. Your objection will be noted, you must be notified of the court date, and you will have to voice your objection to the bankruptcy judge. If the judge accepts your argument you will have a valid debt that you can try to collect. 

I usually tell my creditors that I sell their debt to a credit collection agency. Even though I get pennies on the dollar they will have to deal with the local chapter of the Hells Angels. One of my tenants paid in full when he heard this.


Again, like Stone said. get used to this, prepare for it in the future. Use the law to your advantage and push as hard as you can to collect and then some. I would not hesitate to spend $3,200 to collect $3,200.

Loose the anger, become indifferent, she is nothing but a number now.

Better to be a hardazz than a pushover.

Good luck

Mark


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## dan-o (Sep 28, 2008)

MarkNoV said:


> Lose the anger, become indifferent, she is nothing but a number now.
> Better to be a hardazz than a pushover.


This advice is gold.

I'm currently taking legal action against a deadbeat customer and, before adopting this approach, it was eating me alive. I found it distracting me from day-to-day activities and negatively effecting both my business and family life.

Mentally write off the money (no matter how badly you need it), take appropriate action to recoup your losses, and focus your energy on running your business.

It's a bitter pill to swallow but your quality of life will immediately improve.


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## LNG24 (Oct 30, 2005)

You have gotten some great advice here, especially with being indifferent. Don't let it eat you up. That will damage your health. This is just business!

NOW: You have a lien, Act on it. Be Pro-Active in your collections. She says she will file bankruptcy, but she is just saying it right now to scare you off. 

If this was an insurance job and she has been paid by the insurance company, contact them! Then file a lawsuit in court. Might even be a small claims action if its $4k. I know here it is $5k and under. If you win a judgment, she can't bankrupt that! And Bankruptcy Laws are not like they were. You don't get to walk away Scott free anymore. There is a hearing with bankruptcy. You should be able to get her to court and win a judgment long before she gets her bankruptcy hearing. Explaining to the Bankruptcy judge that SHE collected the money for the job and then misappropriated the funds, you have a great chance of getting your money from her. 

Good Luck. FYI: In the future on insurance jobs, work directly with the insurance company. They can pay you directly.


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