Question? We built a house and we are left owing a builders mart 21000, and a flooring company about 10,000. Are these debts dischargable in a 7? I was told NO, and they would have to be payed or they could garnish wages for 25% and place a judgement on my home. Are these considered secured items? Thanks, any advice would be appreciated!!!!
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Its hard to say as it will depend on your States Mechanics Lien law. If the two companies perfected their mechanics liens, those are statutory liens and can only be avoided (extinguished) by the Trustee, not by the debtor, so they typically cannot be discharged.
If the companies did not perfect their mechanics liens, then you can probably get them discharged. -
If the companies did not perfect their mechanics liens, then you can probably get them discharged. How can I find out if they did or not?Comment
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You would have to see a construction lawyer in your area. Usually all it requires is a series of notices to the debtor before and during construction and then recording the lien with your county recorder. At the very least, you should check with your county recorder to see if there are any liens on file against the property upon which these contractors did work. If yes, then you would need to either research yourself or talk to a construction lawyer to learn what the notice provisions are in your state and the timeframe in which contractor have to file a lien. Mechanics lien typically require the contractor to give the debtor a series of notices, depending on your state law, if the lien procedures were not followed correctly, the lien may be invalid.Originally posted by Summer
Even if they failed to place a Mechanics lien, they can still sue you.Comment
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