Mechanic's Lien

Before you can place a lien on business property, you must first have a court order a judgment directing the debtor to pay what is owed. After filing a claim with the court and submitting proof of the amounts owed to you, the business must answer and explain why the debt is not owed.

A corporate lien is legal claim against a business for money owed to another entity. A corporate lien is usually placed on a business for a debt or unpaid bills owed to another business. Corporate liens may also be used to recover back taxes owed to the government.

To place a lien, you must have a court judgment for the debt, so you must start by suing the business entity in a court of law. Once the judge rules that the debt is warranted, you take the court order to the county recorder's office of each county the business owns property within.

To establish a valid lien, the contractor typically must comply with a number of statutory requirements: the builder must give the homeowner a preliminary lien notice within a specified number of days of beginning work or delivering materials.

In Texas, you can attach a property lien to a debtor's real estate to collect a court judgment.A judgment lien gives the creditor the right to be paid a certain amount of money from proceeds from the sale of the debtor's property.

Once filed and perfected, a mechanic's lien creates a security interest in the property for the amount the creditor is owed. The lien is not against the owner, it is against the owner's property.If there is more than one lien against the same property, the law determines the order in which each lien is paid.

Who you are. The services or materials you provided. The last date you provided the services or materials. How much payment should be. The date on which you will file a lien if you do not receive payment. How the debtor should pay.

Fill out the appropriate mechanics lien form. (Lien form for Original Contractors Lien form for Subcontractors & Suppliers) Deliver your lien form to the county recorder office. Serve your lien on the property owner.

When your efforts to collect a bill from a business that owes you money have been unsuccessful, you can place a lien on the assets of the business. As a lienholder, you gain legal rights to the company's property and the authority to sell the property and use the proceeds to repay what is owed to you.