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Should I file a Mechanics Lien on a couple that has Brankrupted the total owed.

I did a job for a residence that still owes me $3,000 for my services. They informed me they put my account in their Bankruptcy. I then filed a Notice of Intent to File a Mechanics Lien. Now I get a letter from their Bankruptcy Lawyer they have a hearing to remove the Lien from their property. Is this a bluff? I haven't filed a lien yet. Should I go ahead and file a lien? The letter says I have until the 15th to respond or the Judge will decide.

1 reply

Apr 10, 2020

If the work was done before the bankruptcy was filed, most mechanics lien claimants should be able to secure a lien even after bankruptcy has been filed. Like most states, Missouri mechanics liens relate back to the time when work began - so, for all intents and purposes, it's as if the lien was filed when work began. As a result, the automatic stay shouldn't block the lien claim. As for whether it's a bluff - that's hard to say. It could be a bluff. Or, the owner and attorney could legally challenge the claim and demand it's removal. Though, a lien being challenged won't necessarily mean that it's invalid. More on that here: My Lien Was Challenged: What Do I Do? When there's a bankruptcy involved though, it may be wise to consult with a local bankruptcy and/or construction attorney for help proceeding with a claim. They'll have valuable knowledge and be able to make sure you avoid any costly missteps with the raised stakes a bankruptcy brings.

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