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We missed our lien deadline, do we have any other options to secure final payment?

MichiganRecovery Options

We are a material only supplier. No on site labor. Our final shipment date to our customer was in June and our lien rights ended in September. Do we have any other avenues to try to collect our final payment? Our customer still owes us $16K. Is a claim on their bond the only step left available?

5 replies

Oct 29, 2021
If you have a claim on their bond and are still within the deadline file the claim on the bond do it. Otherwise you are left with filing a lawsuit and getting an unsecured claim.
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Oct 29, 2021
BTW If you worked on a publicly owned (e.g. government) project there is no lien right and your primary recourse is to file a claim on the bond if you do not get paid.
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Oct 29, 2021
There are no lien rights on a government project. There will be payment and performance bonds, to protect suppliers. File claims on the bonds, if you can. You also retain the right to file a breach of contract action against the person or company who hired you and promised to pay. I recommend that you call your business attorney as soon as possible.
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Oct 29, 2021

Thank you for your response. This project is commercial and not a government job.

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Nov 2, 2021
Prior to filing suit you should let a certified commercial collection agency licensed and bonded to collect in Michigan attempt to collect the debt on a contingency bases so you are not throwing good money after a bad debt. If collection is not successful, you haven't wasted any money and you can always file suit. Feel free to contact with specific questions, Best regards, Steve
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