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Home>Levelset Community>Legal Help>Good morning, I am looking for a design professional lien template...do you have one?

Good morning, I am looking for a design professional lien template...do you have one?

California

A client has informed me that he is considering a bankruptcy filing...we are owed fees that were invoiced for last December. Need to obtain legal protection against this looming bankrpuptcy.

1 reply

Oct 21, 2020

A design professional lien may only be recorded before work has commenced on the project, so most likely you are too late for that. If the project is ongoing or was completed less than 90 days ago, you might have mechanic's lien rights. But technically you would have been required to give a preliminary notice within 20 days of the project breaking ground. However, you might have an estoppel based argument to avoid the preliminary notice requirement, if the property owner had actual knowledge of your work. 

Many people threaten bankruptcy. the majority do not follow-through. If you believe the client has assets it may be worthwhile to file a lawsuit for the amounts due with or without a lien - depending on the amount owed. If bankruptcy is filed, you may want to file a proof of claim in the bankruptcy (if there are any assets.)

If you have further questions I am happy to discuss via telephone. You can reach out to me at Ryan@huntormtann.com to schedule a call.

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