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Can a creditor of my home based business place a Mechanics Lien for debt owed in a house that I rent ?

IllinoisMechanics Lien

I have a bounced check from my business to a creditor due to NSF. I told them I need a few weeks to make right as funds got messed up from a clients bounced check. Creditor says they will file a Mechanics Lien on my address but I rent from a company out of California. Can they do this ?

1 reply

Jan 15, 2020

Mechanics liens are available to those who have furnished labor or materials which permanently improve the property where the lien is filed. So, if a creditor has performed construction or construction-related work that's physically improved your property, then they may well be entitled to mechanics lien rights. Though, the effectiveness of mechanics liens on leased property is limited. However, if the work, services, or goods giving rise to the debt weren't related to the permanent improvement of your property, then a valid and enforceable mechanics lien cannot be filed on that property to secure the debt. For more information on how mechanics liens work and when they're most appropriate: Mechanics Lien Guide, Forms, & Resources.

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