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steps to file mechanic lien

3/31/2015

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Make the choice to file a lien. When less potent means are out of the question, filing a lien may be what you need to do to get the money you're owed. f the debtor won't respond to your attempts to contact him or her, and won't respond to a debt collection agency, don't wait too long to file a lien. The process for filing a lien is different in every state, and if you file it the wrong way, it won't be valid. Contact your county clerk or speak with an experienced attorney in your state to learn about the proper procedure where you live. There are a few different types of liens you can file (though they may have different names depending on your state):
  • A mechanic's lien is a lien filed by a contractor or construction firm. This is also sometimes referred to as a "construction lien," "labor lien" or "artisan lien."[3]
  • A judgement lien is a lien filed by a creditor who is not a contractor, such as a small business owner who conducted a service for which he or she was never paid by the debtor.

Give preliminary notice. Because a lien is such a powerful tool, in most states you'll need to notify the debtor that you will file a lien if he or she doesn't pay up. This is usually given within the first few weeks of beginning the contract work, before the question of payment has become a problem. In some cases you may want to write the lien potential into your initial contract, which serves as the notice.
  • The type of notice required varies from state to state. In some cases you may need to obtain a form to give official notice. Contact your county clerk for more information
Write or fill out the lien. A lien is usually a one-page document with information on both the creditor and the debtor. Contact your county clerk to determine whether there is a specific form you must fill out. In some cases you may need to draw up a lien on your own or with the help of a lawyer to make sure it contains all the required information.[4]
  • The lien will need to contain legal information about the property in question, as well as the amount you wish you collect.
File the lien within a specific number of days from the completion of the work.Most states require that the lien be filed within a few months of the work's completion. For this reason, it's important to discuss payment options right away. If you wait too long, you may no longer be eligible to file a lien. Once the lien has been filed, a copy will be sent to the debtor.
  • File the lien in the courthouse of the county where the work was completed.
  • The lien will typically state the the debt must be collected within 12 months of its issuance.
  • As soon as you file this lien form and record it in the county where the property is located, the lien will appear on any official report related to the property.
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