Home>Payment Q&As>A client is refusing to pay our entire balance. How do we file a mechanics lien in New Mexico?

A client is refusing to pay our entire balance. How do we file a mechanics lien in New Mexico?

New MexicoMechanics LienNotice of Intent to LienRecovery Options
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Anonymous contractor
Oct 4, 2019

My husband an i own our buisness we have done worked for someone and they are refusing to pay the remaining balance.... How would i go about filing a lien

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Anonymous contractor
Oct 4, 2019
Here's a resource that breaks down exactly how to file a New Mexico mechanics lien: How to File a New Mexico Mechanics Lien – A Step by Step Guide. That article goes into great detail on how to file a lien in the state, and I'm not sure I'd be able to provide that level of guidance here. Further, keep in mind that there are certain notice and deadline requirements which may affect the ability to file a lien, which we discuss here: New Mexico Mechanics Lien Guide and FAQs. Other options for recovery Note, though, that mechanics liens are typically considered the nuclear option. Generally, beginning with a more gentle payment recovery approach - like an invoice reminder - can be helpful in recovering payment without igniting a larger dispute. If invoice reminders are ineffective, escalating the matter a bit with a document like a demand letter can be effective. Demand letters serve as payment reminders which also have a little more teeth - they serve as an indication that, if payment isn't made, then more formal recovery options will be explored. More on that here: Demand Letters for Contractors – How To Write One That Gets You Paid. Finally, escalating the dispute even further might be helpful prior to actually proceeding with a lien claim. Sending a document like a Notice of Intent to Lien can show a customer that nonpayment will absolutely not be tolerated, and that if payment isn't made soon, a lien will be filed. Essentially, it acts like a warning shot. More on that here: What Is a Notice of Intent to Lien and Should You Send One?
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