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Can I file a lien for unpaid goods...is that the correct process

WashingtonCredit Management

Hi There: We have supplied chairs on account to a rental company in Washington State and they have not paid their account. What do we do? My reading indicates that a Mechanics lien applies for construction projects....how do I register a security interest against goods supplied to a person which are then not paid for? Thank you for your help.

1 reply

May 1, 2020
Mechanics lien rights are only available to those who provide a permanent improvement to the project property. You're right that mechanics liens are generally reserved for construction work and furnishing construction materials. And, furnishing chairs or other furniture won't give rise to lien rights. If you haven't been paid by a customer, then you can always pursue legal action. And, merely threatening to file a lawsuit - like with a payment demand letter -can be enough to get paid. Further, sending simple (but formal) invoice reminders might be a good idea before escalating the situation. UCC liens may be available to secure some debts on movable property, but I'll be the first to admit I'm not familiar with them. You can find more info on them here: What Is a UCC Filing & How a UCC Lien Works.
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