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.