A few months ago our client declared themselves bankruptcy, they owe us three project. We file a mechanics lien, but we never file a prelim. We just received a notice letter from United States bankruptcy court, do we response to the notice or wait
2 replies
Sep 15, 2021
If you contracted directly with the owner, and there was no lender, a prelim was not necessary. You need to file a creditors claim in the bankruptcy court, and you have 90 days to file a lawsuit from the date you recorded your lien, but you need to figure out whether or not you can even file suit, to enforce your lien rights, while your client is in bankruptcy or if the 90 day clock is tolled during the bankruptcy? Good luck.
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Sep 19, 2021
Yes you must respond to the letter from the BK Court and presumably file a CLAIM form for your damages. Your claim will be added to the other claims against the person and a payback schedule and amount will be established based upon your CLAIM.