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We need information on filing a lien

New YorkMechanics Lien

We are a contractor that was performing work for a General Contractor on a 16 unit condominium building that had been destroyed due to a fire. We were re-constructing the 16 units and the Owner of the General Contracting firm died suddenly. His company has now filed Chapter 11 and we are listed as one of the creditors. Can we still file a lien on the condominium? The paperwork we received states we cannot call or send notices since they filed for Chapter 11. If we do file a lien on the condominium, do we have to file against all 16 unit owners? Please advise.

2 replies

May 3, 2021

Greetings. It appears you would like to file a lien for work performed on a condominium. Generally, there can be no lien filed against a condominium's common elements once a condominium declaration has been filed. The lien may only be filed against the units. Work done on the common elements however may still be collected from the common charges as trust funds held for payment. The bankruptcy of a general contractor should not prevent the filing of a lien against the condominium as they are separate entities. This is a complicated (and unclear) area of lien law and you must retain counsel should you wish to file a lien. Good luck.

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May 3, 2021
if you are within 8 months of having worked on the job and depending on your agreement wiht the condo and its by laws, you may have a right to lien all 16 units or the common areas or both. You need to retain counsel. If you are able to file a lien, you would not include the GC on the lien. but someone would need to check the local bankruptcy rules as well. You also need to make some trust fund demands. You may be owed money outside the bankruptcy and you may be able to lift the stay for that purpose. I am sorry, you have a complicated issue with a lot of moving parts.
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