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SO IF OVER 90 DAYS THEN WHAT? CAN WE DO SMALL CLAIMS THEN A LIEN?

Michigan

SOME INVOICES ARE 3 YEARS OLD WHAT WOULD YOU RECOMMEND

3 replies

Sep 22, 2021
Good morning, Typically you are entitled to collect on a contract for six years after the last furnishing of labor and materials. Going forward, we encourage our clients to get with us and file liens sixty days after the last provision of labor or materials if they are still unpaid. Now, because you are well beyond ninety days you are no longer entitled to a lien. So, you should determine collectability of your debtor and depending on the amount file in small claims or hire an attorney to assist you if you prefer regardless of amount. Before filing, a demand letter from an attorney who represents you may shake the tree enough to get a response, but if not then a suit is your best recourse. I would be happy to explain the suit process to you and talk about the relative benefits.
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Sep 22, 2021
I agree with Mr Passenger, and will add that the longer you wait the worse your chances are of getting paid. There a lot of variables you did not include- commercial or residential, working directly for a property owner or a sub, size of claims- $1000 or $50,000. construction liens can be tricky, You really need to educate yourself or retain a construction attorney as Mr Passenger noted.
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Sep 22, 2021
It sounds like you have a small claim (<$5000 or so) .. so sue the person or entity you contracted with in small claims and get a judgment (if you did not contract directly with the homeowner you cannot sue the homeowner -- only the contractor you worked for). The problem then is collecting the judgment. You can file a Judgment claim (similar to a lien) against any real property the debtor owns -- but that does not allow you to foreclose (its NOT like a construction lien).
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