I am a sub who was hired by a contractor who is now in bankruptcy. Can I lien the property owner for the balance owed?
1 reply
Jul 22, 2021
As a general matter, the bankruptcy of the contractor would not affect your lien rights as long as the property owner is not in bankruptcy. However, you will need to have sent an appropriate preliminary 20 day notice, and if the property is owner occupied residential, then you need a direct written contract with the property owner. If you have any doubts about whether you have lien rights, consult a lawyer because there is a $5,000 fine for recording an invalid lien.
You may also have a direct lawsuit against the property owner for unjust enrichment. Whether that is a wise course of action depends upon whether the property owner has assets to satisfy any judgment you eventually get, and whether the amount of money owed is worth the expense of a lawsuit.