Georgia Construction, Bond & Lien Law Blog

25K Recovery for Client in a Few Days with Lien Filing!

Posted in Filing Materialmen's Liens,Good Business Practices,Materilamen's Liens by Administrator on the February 17th, 2011

The success of filing valid materialmen’s liens never cease to amaze me.

Although there are no guarantees, it has been proven many times that filing a valid mechanic’s lien will increase your recovery of bad debt.  About three weeks ago, for example, a new client contacted us and stated that they had performed work in the common areas of a large development near Atlanta, GA.  We confirmed that they had performed pursuant to their contract, that there were no defects, and double checked their invoices and demands.   We confirmed the project location and confirm that our client had performed work on the site in the last ninety days.

Then, we filed a materialmen’s lien on their behalf and sent the obligatory copies of the liens to the homeowners’ association and the management company.  Within days of their receipt of our letter, we received a telephone call from the management company stating that they intended to pay the debt in full.  Five days later, we received a certified check payable to our client in exchange for releasing the materialmen’s lien.  Needless to say, our client was very happy.

These results may not be typical.  You may or may not have similar results if you file materialmen’s liens for your bad debt, but unless you (i) preserve your lien rights if you are a supplier or subcontractor  and (ii) timely file a valid construction lien, then you may not get any payment of the money you are owed.

In the current economy, commercial collections of accounts is increasingly more difficult. Debtors own fewer and fewer assets which may be attached by creditors; thus, it is imperative that suppliers, subcontractors and contractors in Georgia who are not seeing payments file valid liens.  Please contact the Cobb Law Group to see if you are able to file a mechanics lien and increase your recovery rates!

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