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How to proceed when lien has been filed and close to 6 months since on job site and client now in bankruptcy court.

With a client in bankruptcy court and a proof of claim filed with that court we are approaching our 6 months since last on the job site. A lien, as I understand, has to be enforced before 6 months in Colorado. With a proof of claim we could be paid through the bankruptcy court, but not guaranteed. Do we enforce the lien or is there something that extends the time while it is in bankruptcy court? We just don't want to lose our right to enforce the lien while waiting for the bankruptcy system to pay... and possibly not even get paid through that process.

1 reply

Oct 17, 2019

You're correct that Colorado's mechanics lien enforcement deadline is 6 months from either project completion or the claimant's last furnishing date. With a bankruptcy on the project, that certainly complicates things some. This question sounds very similar to one asked the other day - so I'm assuming this may have been posted twice: When do we have to act on the lien we placed? But, if not, that answer should provide a lot of helpful insight on when a mechanics lien must be enforced with a bankruptcy in play. Also, note that whatever course of action is taken, it would be wise to be sure it's taken prior to the deadline to enforce the filed mechanics lien. Further, note that a bankruptcy attorney would be very valuable when trying to pursue a claim against a party in bankruptcy.

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