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jerseywireman · Jan 27, 2006, 01:04 PM

Does anyone know if a mechanics lien is discharged in Chapter 11 Bankruptcy or does it make the lien holder a securred creditor? We are in NJ but I don't know if location has anything to do with it when a national retailer is involved.

Difficult question but I need to know a proper answer not a wild guess.

Thanks

Fr_Chuck · Jan 27, 2006, 01:21 PM

A mechanics lien if executed and attached properly puts a lien on your propery. This would secure the debt by the property.

This is why the person does a lien, so they are not considered a non secured debt just for this protection.

jerseywireman · Jan 27, 2006, 02:05 PM

Thanks for that Fr Chuck and I'm pretty certain you're right but the professionals I've checked with don't seem to know how to answer the question. I keep getting the feeling that I am educating the Lawyers rather that the other way around. Real problem it that I hold the lien against national retailer and my lien was in place at the time of their filing. Needless to say it's for a considerable amount of money that I can't afford to lose so if you know anyone that knows the answer I'd certainly like to hear it.

Right now I don't have the money to waste on a Lawyer that doesn't know the answers and I certainly can't pay to further his education.

Fr_Chuck · Jan 27, 2006, 02:18 PM

I used to fill out ( OK you only type in basic data into a file and the computer spits out all the filings paper) as a para legal some years ago. We could not of course give legal advice. At that time that is how we filed all of the mechanic liens.

Now I know that a lot of laws changed the last couple of years, but from my understanding it has been more for the protection of the lender not the borrower.

jerseywireman · Jan 27, 2006, 03:33 PM

It's been a number of years since Business Law in College but as I remember it what you're saying is correct. I know the legal system has left a lot to be desired lately but I can't believe that the law allows for a borrower to completely hide behind the defense of Bankruptcy. Since Chapter 11 is reorginazation I believe I did the right thing in filing thr lien to protect my interests. I just wish I could find someone that knows the actual precedent for this. Maybe if you ask the "Big Guy" you can get the answer. He's listening to me but He's not saying much yet. Then he did send me you so maybe He's saying more than I understand! Anyone in your flock that might know the answers?