Attempting to collect a debt on mechanic’s liens can be a complicated matter. Seeking experienced legal representation from debt collection attorneys can help you meet the necessary deadlines and guidelines to recover the debt. Unfortunately, many suppliers and contractors make mistakes along the way that prevent them from having a successful case. Keep reading to learn more about mechanic’s liens and how you can avoid the common mistakes to set your case up for success.
What Is a Mechanic’s Lien?
A mechanic’s lien is the legal claim a supplier or subcontractor makes against a property or general contractor when not receiving payment for products or services. Many clients come to a dead end in their attempt to collect payment and need legal representation to help them move a case forward. Many general contractors or property owners pay mechanic’s lien claims within three months of the filing. However, some require additional legal action to encourage payment.
There are certain mistakes and pitfalls to avoid when it comes to filing and moving forward with mechanic’s liens claims. Take a look at the top 5 mechanic’s liens mistakes.
1. Underestimating the complex nature of mechanic’s liens.
First of all, the laws surrounding mechanic’s liens are hyper-complex. In 2009, the state of Georgia revamped the mechanic’s lien laws, so it’s essential to understand what they mean and how they apply to your case. The laws include strict deadlines that a client must meet to have a legitimate filing.
2. Failing to give the necessary attention to the finer details.
Small details matter when it comes to debt collection on a mechanic’s lien. There are several steps and details in the claims process that you must consider. Failure to meet the requirements or provide all of the information can be a waste of your time and resources.
3. Submitting inaccurate property descriptions.
In addition, the property description must be accurate for your claim. Identifying the home or property on the lien form is more complicated than you might imagine. Writing down the address is not enough. In most cases, you will need to include the legal property description that matches up with city and state records. The number one reason mechanic’s liens face rejection is due to incorrect information in the paperwork.
4. Not fully understanding one’s rights to the lien.
Not receiving payment on a property’s project doesn’t automatically mean you have a right to file a mechanic’s lien claim. Several issues can prevent you from filing a claim, including failure to submit a preliminary notice or pre-lien, missing deadlines, not sending it to the correct party, and using an incorrect delivery method.
5. Attempting to bundle too many expenses into the mechanic’s liens.
Finally, exaggerating the lien claim amount can cause problems for your case. It’s important to include only specific expenses that are associated with the project you completed. What does and does not fall under the mechanic’s lien law varies by state, so it’s a good idea to contact a Georgia debt collector attorney to file correctly.
File Mechanic’s Liens with Georgia Debt Collection Attorneys
At Howe & Associates Debt Collection Attorneys, we bring decades of experience to your mechanic’s liens cases. So, let us help you avoid these common mistakes so you can get the settlement you deserve. Contact us today for a free consultation.
Are you a business owner who provides home improvement services or supplies? If yes, you know how frustrating it can be when homeowners fail to pay for the improvements made on their home. Unpaid invoices can create a serious cash flow problem for your company. This is especially true if you have already provided supplies and services and the customer has made no payment. Collecting on unpaid debt is possible. Most importantly, when you work in the home improvement industry, there are additional tools you can utilize. The courts have specifically created a mechanic’s lien for collecting on unpaid invoices by homeowners who are improving their home.
How a Mechanic’s Lien Works
A mechanic’s lien allows for businesses within the construction industry to ensure their clients pay for the services or goods they have provided. The first step to collecting on unpaid debts is giving a 20 to 30 day notice to the homeowner. This time period allows them the opportunity to arrange to make payment on the goods.
Next, the business must file a claim of the mechanic’s lien. This lien enforces payment on the debt. The business owner must file this document between 60 days and six months after they have provided the goods or services. If this time frame passes, the courts will consider the lien invalid.
Why Hire a Lawyer to Handle Unpaid Debt
In general, construction contractors and suppliers will find that collecting on unpaid debt is possible. However, it is not easy. A debt collection lawyer has extensive experience working with a mechanic’s lien. They fully understand the strict guidelines surrounding this method of debt collection.
If you are a supplier or contractor and you are struggling to collect on unpaid debt, consider hiring a debt collection attorney. An attorney can help you file and enforce a mechanic’s lien. To learn more about your options for using a mechanic’s lien to collect on an unpaid debt call 678-566-6800 to speak with an attorney at Howe & Associates Debt Collection Attorneys.
As a business, you must collect your debts. This is an integral part of owning a business, as this is the profit that you are expecting. One step you can take to help collect outstanding business debts is to contact a lien attorney. There are a few reasons to go with them when you need to collect.
A Lien Attorney Understands the Laws
There are many laws to think about when it comes to debt collection. It is not a simple process. And, unless you have the time to learn the law inside and out, it is best left to the professionals. They will look at each case to determine what the appropriate course of action is. This will ensure that you get the best return.
They Provide the Best Counsel
The best reason to go with a lien attorney is that they offer the best advice. They have studied the law and understand its intricate nature. And when you choose an attorney who specializes in debt collection, you will get the best advice on how to collect your debts.
Save Yourself Time & Money
Another thing to consider when collecting debts is that a lien lawyer will be able to save you time and money. This is because they understand what you need to do in order to collect the debt. They can take care of it in a minimal amount of time, and you will see a more significant percentage of debtors pay their accounts. When you add up the amount that you would have to pay your employees to handle this and the percentage of paid accounts, you will see that it is much more beneficial to have an attorney handle this for you. Also, it will not cost you as much as you think to have a lawyer take on the case.
Get a Judgement Against Your Debtor
When it comes to hiring a lien attorney, it is definitely worth the investment. They will be able to, at the very minimum, get a court judgment stating that you are entitled to payment. This will allow you to put a lien on the person and have a judgment against them.
Many people are under the false notion that this has no value. The truth is that it is beneficial in many ways. You will find that putting a lien on someone may mean that they must pay it off before certain things can happen. The debtor would need to pay the lien before buying a house or even possibly getting a driver’s license. It will also affect their credit score; so, if they want to improve their credit, they must pay this off. Along with this, it is often something that can be paid off or put on a payment arrangement if the person goes through bankruptcy.
Debt Collection with Howe & Associates
There are many reasons to call a lien attorney instead of going with a debt collection company or trying to do the collections on your own. Remember that a letter from an attorney will always seem more authoritative than the one you do yourself or even one from a debt collection company. Contact Howe & Associates today to get started on collecting outstanding debts.
Here is a good article to help you understand how mechanic’s liens work, and it offers good tips to prevent a bad relationship between you and the contractor. Sometimes things don’t work according to plan, and in those cases we’re here to help resolve the financial dispute.
Below the excerpt is a link to the full article.
Kansas City StarPrevent disputes with contractors from blowing upKansas City StarNot happy with a contractor’s work on your house? Watch out! If you refuse to pay the invoice, you risk having a mechanic’s lien attached to your property. A lien creates an interest in your property to secure the performance of an obligation — in …
Scott Wolfe Jr., CEO of zlien, has written a good article on how a Mechanic’s Lien can help you.
In the article he states “While the battle between policy and contract is likely to continue, for construction industry members both new and seasoned, it’s important to be aware of contract clauses and risk shifting devices.”. He then goes on to list some of the provisions to consider.
If you are considering a Mechanic’s Lien to protect you from future bad debt situations, we recommend that you read the full article at the link below:
Risky Business: How a Mechanic’s Lien Can Help | The Lien … – Zlien
The economy has shown signs of rebound but financial risk still threatens the construction industry. Mechanics liens can help shift risk back up the chain.