We recently received notice from one of our National accounts that they filed for Chapter 11 Bankruptcy protection. We have two jobs in progress with this account, We last furnished lighting materials to this account on 12/21/22. We haven't shipped anything since receiving the bankruptcy notice. My question is simple. Can we pursue mechanic liens on these two unpaid / unfinished projects; one owing $26,500 and the other $6,500 ; total owed to us is $33,000 after receiving the Notice of Chapter 11 Bankruptcy Case (Official Form 309F) dated 1/17/2023?
This is actually a tricky situation. Under Maryland law there is nothing preventing the filing of a mechanic's lien, assuming the elements under the statute are met. However, under federal bankruptcy law, it is possible that the automatic stay will be construed to include any matter in which the bankrupt filer maintains an interest, which would prevent a state court from proceeding on a mechanic's lien action such as this.
Thank you for responding. Levelset doesn't facilitate lien filings in the State of Maryland. Are pursuing these two liens, irrespective of the circumstances, something your firm would be willing to handle for my company. I have been instructed by my managers to file liens on these two projects if it's legal. I'm fairly certain we haven't jeorpardized our lien rights in any way. Is there a way we can discuss this outside of this forum so I can get details on whether it's worth our while to file these liens?
You can certainly contact me directly via email: firstname.lastname@example.org. You may learn more about my firm at www.joekatzlaw.com.
Looking forward to speaking with you.