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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 12204
Experience:  JD, MBA
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If my company put a lien on a home for balanced owed for materials

Resolved Question:

If my company put a lien on a home for balanced owed for materials and service and the customer has now filed bankruptcy, do we have to remove the lien? We did not know the bankruptcy was in affect and we weren't acknowledge about it till the court was over with. What can be done to collect funds owed to us?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  TJ, Esq. replied 6 years ago.
Hi. How long ago was the lien put on the property?
Customer: replied 6 years ago.

Lien filed on May 25, 2010

Chapter 7 filed October 16, 2010

Expert:  TJ, Esq. replied 6 years ago.

That’s what I was afraid of … your question is moot. A mechanic’s lien must be enforced within 6 months, or it becomes invalid. It has now been longer than 6 months in your situation, so you couldn’t enforce it even if there were no bankruptcy to worry about. Here is the law:

38-22-110. Action commenced within six months.

No lien claimed by virtue of this article, as against the owner of the property or as against one primarily liable for the debt upon which the lien is based or as against anyone who is neither the owner of the property nor one primarily liable for such debt, shall hold the property longer than six months after the last work or labor is performed, or laborers or materials are furnished, or after the completion of the building, structure, or other improvement, or the completion of the alteration, addition to, or repair thereof, as prescribed in section 38-22-109, unless an action has been commenced within that time to enforce the same, and unless also a notice stating that such action has been commenced is filed for record within that time in the office of the county clerk and recorder of the county in which said property is situate. Where two or more liens are claimed of record against the same property, the commencement of any action and the filing of the notice of the commencement of such action within that time by any one or more of such lien claimants in which action all the lien claimants as appear of record are made parties, either plaintiff or defendant shall be sufficient.

I’m sorry to say that you probably have no recourse. Most likely, the debt itself will be discharged in the bankruptcy. A mechanic’s lien is not canceled in bankruptcy, but that’s irrelevant as mentioned above since it wasn’t enforced (i.e., foreclosed) within 6 months. I really wish I had better news.

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