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Can I file mechanic's lien if the client is in active bankruptcy?

Illinois

We just found out that our client is in active bankruptcy since August 2018. Can we still file lien on the property for work we completed?

1 reply

Jul 19, 2021

You ask if you can file a Mechanics Lien against property with respect to which the Owner is in Bankruptcy.

  • Short Answer: No, with a but...
  • Longer Answer: Yes, with an if...

Bottom line, you cannot take action to collect from, the Debtor, or encumber the "property of the estate." That said, I would not jump to the conclusion that the property you improved is the "property of the esate." I would sit down with an Attorney knowledgable in Mechanics Lien and Bankruptcy law, and discuss the options. 

Remember, if you do not take the right steps you will lose your rights, permanently. I hope this information was helpful. Best of luck.

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