How To Avoid Construction Lien Traps In Bankruptcy Filings

By Blake Robinson (June 24, 2022, 4:29 PM EDT) -- Most contractors are well aware of the importance of timely filing a construction lien. They also generally understand that they must file a lawsuit foreclosing the construction lien within the timeframe allowed by state law.

Failure to comply with either step in the lien process will invalidate the lien, leaving the contractor as an unsecured creditor.

But what happens when the building owner files a Chapter 11 petition for bankruptcy relief after the contract records a lien but before the contractor is able to file the lien foreclosure lawsuit?

In In re: 450 S. Western Ave. LLC in December 2021, the...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!