Guide to Mechanics Liens and Bankruptcy

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Guide to Mechanics Liens and Bankruptcy

If you’re stuck on a job where a party has filed for bankruptcy, or is at risk of doing so, this is the guide for you. In our ultimate guide, we break down what happens when a party declares bankruptcy and how this can impact you. No matter where you are in the payment chain, this can affect your ability to get paid what you’ve earned.

Read the guide to find out:

  • How bankruptcy affects mechanics lien rights (hint: if done right, it can actually be an even more powerful tool to ensure payment in the event a party files for bankruptcy)
  • What needs to be done to guarantee lien rights so your payment can be protected by a mechanics lien
  • How the Automatic Stay affects mechanics liens and the lien filing period
  • Whether a lien is considered a “secured debt” in the event of bankruptcy
  • When bankruptcy can allow mechanics lien debts to be avoided or stripped

Find out how to protect your payment in the event a party files for bankruptcy on your construction project.