Is there a time limitation on filing a mechanics lien on someone who owes my company money?

Question

Can you detail for me how a mechanics lien works? Is there anything that I should know to ensure when I file it is done correctly and it will not come back on me as a judgement? I have some accounts that are a year past due and our collection agency is not coming through. We are choosing to take a different route (a mechanics lien). Is this our best bet in collecting outstanding funds? Thank you for your help.

Answer 1

YOU USUALLY HAVE 3 YRS, BUT YOU MUST DO ALL THINGS REQUIRED ANY SLIP UPS AND JUDGE CAN VACATE YOUR LEIN:(

Answer 2

First, a mechanic's lien is a claim by someone (a person or a business) who performs construction work on your property. What constitutes work for which a mechanic's lien can be imposed is defined by a statute and case law in Indiana. Generally speaking, it would include any type of construction or remodeling work, including supplying materials for the people who do the work. Even landscaping services have been held to constitute "lienable improvements" to property. The key is whether the work improves the property.

On residential property, in order to constitute a valid lien, the lien claimant must record the lien notice within usually 60 to 90 days of the date he or she last performed work or supplied materials to your property.

If your clients owe money for products/services other than construction/ home improvement, a mechanic's lien is not appropriate. You may have to take them to Small Claims Court, to collect. Contact the Court Clerk in your municipality/ County for information as to procedures to file. In most jurisdictions an attorney is not required by either party.