Menu
Home>Levelset Community>Legal Help>My client has installed HVAC equipment as a subcontractor in Texas. The invoices have gone unpaid.

My client has installed HVAC equipment as a subcontractor in Texas. The invoices have gone unpaid.

TexasRecovery Options

My client has installed HVAC equipment as a subcontractor in Texas. The invoices have gone unpaid. The work was done in 2016 and the contractor has gone out of business. What is the status of limitations to collect and what would be the process of notices that need to be sent to the customer and what is the process to collect using Zlien?

1 reply

Jun 15, 2018
When a contractor has gone out of business, obviously, options to recover from that contractor based on the contract between the contractor and the claimant are bleak at best. While a mechanics lien claim is a solid option for recovery that is not based merely on contractual grounds, there are strict requirements that apply. To collect via a mechanics lien claim in Texas, a mechanics lien must be filed by the 15th day of the 4th month after the month in which the lien claimant last furnished labor or material to the project. On residential projects, this time frame is reduced to the 15th day of the 3rd month. Of course, prior to filing a Texas mechanics lien, certain notice requirements must be met - and these requirements will differ based on a claimant's hiring party (customer) and the project type (generally: commercial, residential, public, or federal). For more on those notice requirements, we've got a helpful FAQ here: Texas Mechanics Lien & Notice FAQs. Changing gears, to file a lien claim using zlien, a claimant can use the zlien Document Navigator. There, a multitude of products can be ordered that can help recover payments owed - including a mechanics lien, or softer documents like a Notice of Intent to Lien. Even in a situation where a valid lien claim may no longer be filed, a Notice of Intent to Lien can be effective. Because lien claims are such a drastic recovery method, property owners want to avoid lien filings at all costs, and attempting to call a claimant's bluff is often too dangerous of an option.
0 likes

Add your answer or comment

Not the answer you were looking for? Check out other Recovery Options topics or ask your own question