Steps to foreclose on a lien

1 month ago

Zlien/Levelset filed a lien for us two years ago. The deadline to foreclose is approaching and Levelset sent a letter the the property owner, contractor and the store in the space.
The property owner’s lawyer denies his client was ever notified of the lien, which Levelset has proof of service for, so their intent appears to be to deny the situation exists.
The store appears to be in perpetual bankruptcy, but is operating.
All parties are hiding behind the bankruptcy.
We want to make them all believers that we will foreclose and get one or all of them to resolve this prior to foreclosure.
What are the next steps?

Chief Legal Officer Levelset
72 reviews

An action to enforce a mechanics lien is a full-blown lawsuit. While an individual lien claimant can represent him/herself, it is almost never a good idea to do so. It is a better idea, and a requirement for a company lien claimant, to enlist the assistance of an attorney.

For all non-residential property, an action to enforce the lien must be initiated by the later of either: 1) 2 years after the last date on which the lien claimant could file his lien, or 2) 1 year after termination, completion, or abandonment or the project.

Pleading requirements foreclosure of a mechanics liens are set out by Texas Rules of Civil Procedure Rule 309. It’s important to follow the language set forth in Rule 309 in order to avoid any potential issues.

If there is actually an ongoing bankruptcy it may be impossible to enforce the mechanics lien until after the conclusion of the bankruptcy proceeding. However, it is generally possible for the enforcement period to be tolled during the bankruptcy proceeding so that the deadline to initiate the enforcement action does not pass.

These are all complex issues, and getting the assistance of a local attorney to help guide you through the process and help with the required action is a good idea.

 

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