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Why Mechanics Lien Claims Help You Get Paid In Face of Bankruptcy

The last few posts studying the interplay between mechanics liens and bankruptcy examined some interesting procedural aspects, but really, all the information boils down to how it relates to one question: Will I Get Paid? Since mechanics liens have a rare ability to be perfected after the automatic stay, and can emerge unscathed and in […]

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Is a Mechanics Lien Avoidable by a Bankrupt Debtor?

We have determined that a mechanics’ lien is a powerful tool even when confronted with a bankruptcy petition.  This puts a mechanics’ lien holder in an enviable position when attempting to recover a debt.  However, a bankrupt debtor can avoid certain types of liens in a process known as “lien-stripping” even though they are “secured” […]

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Does a Mechanics Lien Secure Debt in Bankruptcy?

Everybody has the same question when a debtor files for bankruptcy protection – Will I get paid?  In order to determine the likelihood of a creditor receiving payment from a bankrupt debtor, one of the essential factors to consider is the nature of the debt.  That is, is the debt secured, or unsecured? Generally, unsecured […]

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Can a Lien be Foreclosed Upon if a Party Files Bankruptcy?

In the last couple posts we determined that a mechanics’ lien may be perfected during bankruptcy’s automatic stay, and that the time period to enforce a mechanics’ lien may be tolled (suspended) during the automatic stay.  But what if you want to enforce your mechanics lien despite a bankruptcy filing; is that possible?  Like many […]

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Maintaining Mechanics Lien Rights Through Bankruptcy’s Automatic Stay

When we last left off we had determined that the Bankruptcy Code allows for the perfection of a mechanics’ lien during the automatic stay, if the lien arose prior to the filing of the bankruptcy petition.  We were left with a problem, however.  Despite the fact that a mechanics’ lien may be perfected during the automatic […]

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Bankruptcy and Mechanics Lien Claims – The Automatic Stay

This is the first substantive post in the Bankruptcy Series.  Throughout the next several days we will be examining a variety of issues related to the intersection of Mechanics’ Lien Claims and Bankruptcy.  It is an unfortunate reality that sometimes the reason payments are not forthcoming is the significant financial distress of the responsible party. […]

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Mechanics Lien and Bankruptcy Series

Over the next several days, I will be examining several interesting aspects of mechanics lien law as it relates to bankruptcy.  Unfortunately, sometimes the reason you don’t get paid on a project is because a party involved has filed for bankruptcy.  If that happens to you, what can you do? Does your mechanics lien protect […]

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