Home>Levelset Community>Legal Help>We, as a subcontractor, filed a mechanics lien and it has now been discharged as a paper bond. I am aware that you can, and should, continue to pursue the lien. However, what are the best, and least expensive yet effective ways to do so? Also, I've been told to sign a consent statement to release funds? Sounds dangerous, what is it and is there a sample?

We, as a subcontractor, filed a mechanics lien and it has now been discharged as a paper bond. I am aware that you can, and should, continue to pursue the lien. However, what are the best, and least expensive yet effective ways to do so? Also, I've been told to sign a consent statement to release funds? Sounds dangerous, what is it and is there a sample?

North CarolinaBonding Off Lien

1 reply

Oct 30, 2018

I'm sorry to hear you've been going unpaid. It's frustrating when you aren't paid what you've earned. When a mechanics lien is "bonded off", a claimant doesn't lose their claim to payment - it just changes things a little. Instead of the lien remaining on the property, the claimant's lien is discharged by depositing the bond, and the claimant then has the right to file suit against that bond. Considering this entails an actual lawsuit, this will likely require hiring an attorney to file a claim against the bond (and, even if it's not required, it's almost never a good idea to represent yourself in court). Unfortunately, hiring an attorney to file suit against the bond is not always cost-efficient, but there's always a possibility that an attorney would be open to a contingency arrangement. In such a situation, a suit may be brought against the bond without upfront payment for legal services, but the attorney would charge a portion of the recovery. Further, if successful, there's always the possibility that the court would award attorney fees and/or other expenses to the claimant. Regarding a "Consent Statement to Release Funds", I'm unsure what this particular document may be without further review. However, you're right to be wary of signing anything that may affect your claim for payment. Consulting a local construction attorney could be helpful in determining how best to proceed with making a claim against the bond and regarding the "Consent Statement to Release Funds" - they'll be able to review any relevant information and documents and advise you best how to proceed.

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