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My builder went bankrupt during construction. Can I file a lien on money provided for the project?

TexasBankruptcyRight to Lien

Home buyer that paid earnest money, money for upgrades, multiple projects for improvements, etc. Project was close to finish and has now been foreclosed on. Can I file a lien for lost money? In the state of Texas.

1 reply

Jun 23, 2020
Paying for a project generally won't give rise to mechanics lien rights. Rather, mechanics lien rights are available to those who provide work, materials, or equipment but don't get paid for it. With that being said, it doesn't mean you won't have some sort of recourse against the builder or the property. When your builder has gone bankrupt and you're left high and dry, it'd be wise to consult with a local Texas attorney who's familiar with bankruptcy and construction law. They'll be able to help navigate the issue and help you get what's yours. For help finding the right attorney: Find a Texas Construction Lawyer.
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