How Filing A Lien Can Be Helpful on a Bankrupt Project
On July 6, 2009
By Scott Wolfe Jr
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Let’s face facts: 2009 has not been a great year for construction.
Contractors and Suppliers large and small are facing non-payment scenarios, and sometimes, while waiting for a prolonged payment some are getting feared news: that the owner or general contractor is filing bankruptcy.
Christopher Hill, a construction attorney in Virginia, just this week published a short and easy-to-read article on JDSupra explaining how Virginia Mechanic’s Liens Survive Bankruptcy. Mr. Hill summarizes his point with the following:
[I]n today’s climate, contractors should not feel that they are completely helpless in the bankruptcy fight. Filing a mechanics lien…can put a contractor or subcontractor in as good a position as possible should the owner of a project file bankruptcy.
While the article regards the mechanics lien statutes in Virginia, many other states’ lien statutes operate the same way.
Generally speaking, mechanics lien statutes are written to protect those who contributed to construction projects. Regardless of what errors in payment occur on a construction project, mechanics liens are the best tool for your company to protect its right to get paid.
But the right doesn’t last forever, and if you file incorrectly, the rules are uncompromising.
Get Started with Zlien to file your claim of lien, and protect your company’s right to payment.
About the Author: Scott Wolfe Jr
A construction attorney and entrepreneur. Scott is a native of New Orleans, Louisiana, obtaining his J.D. degree from Loyola University of New Orleans, and his B.A. from Southern Methodist University in Dallas, TX. In 2006, 2007 and 2008 New Orleans City Business magazine named Scott Wolfe, Jr. as one the 50 Leaders in Law. The son and grandson of general contractors, Scott Wolfe, Jr. is a construction litigator in Louisiana and Washington, and the founding member of the bi-coastal firm, Wolfe Law Group. Scott is also the founder and CEO of Express Lien, Inc., a legal document preparation service for contractors. In 2008, City Business Magazine recognized Scott as one of its Innovators of the Year for the Express Lien concept. Scott is also the founder and CEO of The Web Lab, InCharge Technology, Blog No Evil, Inc., Publius, Inc. and Two Cities Publishing, LLC.
THanks for the props Scott. You can also see my original blog post on this at http://bit.ly/1of1il