Can I file a lien after a company has filed bankruptcy? I have sent the notice of intent but no the actual filing.
1 reply
Jun 19, 2020
If the party who's gone bankrupt isn't the property owner, the bankruptcy may ultimately be irrelevant to the ability to lien. That's because mechanics liens attach to the project property, not against any individual or specific business.
If the owner has gone bankrupt, that would create a hurdle. Unlike most other states, mechanics liens in New York don't "relate back." Meaning, the lien doesn't actually attach to the property until it's filed. Practically, for NY liens and bankruptcy, that means the claimant will need to seek relief from the automatic stay in order to file a mechanics lien against an owner who's filed bankruptcy. That's by no means an insurmountable feat - but it might take some help from an attorney to make sure everything's done by the book.
I hope that was a helpful start. Unfortunately, liens and bankruptcy can quickly become complex in New York, so you may want to consult with a New York construction lawyer before filing. They'll be able to review crucial details and documentation, then advise on how best to move forward and get paid. Additionally, this article has some extremely detailed information: How to Protect Your Payments When Dealing with a Construction Bankruptcy.