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What are my options for enforcing a lien if the general contractor is no longer solvent?

CaliforniaLien DeadlinesMechanics Lien

My company has filed a lien against the property and the GC is consulting with a bankruptcy law firm in order to pay subcontractors. What are my options?

3 replies

Mar 4, 2021
If, GC files bankruptcy, there will be an automatic stay that will drag out the case for a long period of time IF you include the GC in your mechanics lien foreclosure case. One consideration is to not sue the GC and instead bring a foreclosure action only against the property owner and any finance lenders on the project. depending on the amount, if the GC files bk then the license bond should step in to cover up to its limits. This is definitely something you would want to consult a construction attorney on.
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Mar 8, 2021
A mechanic’s lien is your BEST remedy where the general contractor is insolvent because the owner will pay you, provided you properly and timely served your Preliminary Notice on the owner and the GC.  A mechanic’s lien ultimately results in you being able to sell the property to satisfy the debt.  The owner isn’t going to allow this to happen so they wind up paying your bill or negotiating a settlement with you.  You must perfect your lien by filing a lawsuit to foreclose the lien within 90 days of the lien recording date.  You only have 90 days from completion of the project to record your lien (assuming no Notice of Completion is filed) so you may need to act quickly.  I’m happy to answer any questions you have about this.

Cathleen M. Curl, Esq.
Law Office of Cathleen M. Curl
T 650-871-5955
 
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Mar 17, 2021
I hired a concrete contractor to lay a slab on my property and he didnt pay his supplier for the concrete they since have placed a lien on my property what can i do
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