Should I still send out lien notices to a contractor who has already filed bankruptcy?

1 year ago

Should I still send out lien notices to a contractor who has already filed bankruptcy?

Senior Legal Associate Levelset

That’s a good question. When preliminary notice is required prior to a mechanics lien filing, it’s important to follow those requirements to a T. The failure to strictly follow notice requirements will often invalidate even the most valid of claims. Of course, when one of the parties who will receive the notice has entered bankruptcy, life on a construction project can get more interesting. However, despite the chaos that a bankruptcy can bring to a project, notices should still be sent as required by statute – and if that means a bankrupt party will receive a monthly notice, then that notice should likely be sent.

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