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Can I file a lien against former customer's real property?

MississippiMechanics Lien

Dear Sir or Madam, During year 2018, I performed 18 ½ weeks’ of programming and engineering for a company in Jackson, MS. The company for which I performed the work, has paid me for only 12 ½ weeks. In addition to work hours, there were out-of-pocket expenses also incurred during this time. The total indebtedness of the company to me totals $27,650.45. I have contacted them numerous times and sent a demand letter, all to no avail. The company has since filed for bankruptcy but still continues to do limited business from what I hear. I also know that the current investors in the company, two brothers in the investments business out of Houston, Texas, have been in negotiations to sell the company in Jackson. Since they have already filed bankruptcy, I see no advantage in filing a lawsuit, but filing a lien against real property may have better results. Please let me know if this is something worth pursuing, or whether too much time has elapsed.

3 replies

Feb 24, 2020
Liens against real property (real estate) are strictly regulated. Generally, these liens may arise from the furnishing of labor or material to a construction project to improve the actual property itself (a mechanics lien), due to tax obligations (a tax lien), or pursuant to lending money for the purchase or improvement of the property (a mortgage or deed of trust). It is generally not allowable to encumber property for obligations that do not relate to the property at issue, absent special circumstances. However, if a judgment is obtained, a "judgment lien" can be filed in the records of the county or counties in which the judgment debtor owns property in order to secure the judgment amount.
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Feb 24, 2020
Thank you for your response. I understand from your comments that a lien in the traditional sense is not permitted to be filed against real property. However, your comment about a 'judgement lien' is a little confusing. Are you saying that such a lien is permitted, or permitted with extenuating circumstances? Please clarify. Also, would such a lien impede the sale of the business by the brothers to a third party? If this be the case, please advise the steps required to proceed and the associated costs. Also, could these incurred costs be recouped via this lien or any other means?
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Feb 24, 2020
A judgment lien is only available once a lawsuit has been completed and a judgment awarded. The prevailing party is the "judgment creditor" and the non-prevailing party is the "judgment debtor." When a judgment has been awarded, the judgment creditor may generally file a judgment lien in the property records of each county in which the judgment debtor owns property. If such a lien is filed, it encumbers the property located in those counties, as other liens would. Note, however, that, as stated above, a judgment lien is only applicable after a lawsuit has concluded.
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