The Automatic Stay, Bankruptcy and Tenant Insolvency – Weekly Review
“Current Illinois law does not permit Chicago or other Illinois municipalities to immediately file for bankruptcy. That could change if a bill filed in the Illinois legislature this week becomes law. In order for Chicago or any U.S. city to file for Chapter 9 bankruptcy, the city must be authorized by state law to file a bankruptcy case. Without such specific authorization, the bankruptcy process simply is not available.”
“While many landlords know what to do if their tenant is in default or likely insolvent, in our experience, once that tenant starts a bankruptcy or other insolvency process many landlords feel there is little they can do. Afraid to throw good money after bad, landlords often elect not to retain counsel and instead sit on their hands in frustration, not knowing that a more active approach could get them better results. However, experienced bankruptcy and insolvency counsel can do much more for a landlord than just help it fill out a proof of claim form.”
The National Law Review “The Automatic Stay: What Creditors Need to Know”
“Imagine that, as a creditor, you are about to collect on a money judgment following a lengthy trial; you’ve scheduled an impending foreclosure sale of real estate that is subject to your mortgage; or you are getting ready to complete a UCC sale of your personal property collateral. Suddenly, however, you receive word that your defendant/borrower/debtor filed a voluntary bankruptcy petition. Unfortunately, under these and similar circumstances, the automatic stay dictates that any action to recover on your claim against the debtor must come to an immediate halt.”
You sent your preliminary notice; your customer’s invoices became past due. You sent a demand letter; your customer didn’t budge. You filed a mechanic’s lien, miscommunication is running rampant between the parties within the contractual chain, and yet you still aren’t paid. It’s time to file suit. But, how do you find an Attorney that understands the intricacies of construction law?
Prelien Notice Mistake Invalidates the Mechanic’s Lien
“Niewind’s invalidated mechanic’s lien can be an auspicious warning. Mechanic’s Lien laws vary state to state, and yes, one state may be more lenient than another, but it’s best to follow the statute to the letter. Remember, mechanic’s lien laws are often complicated and are not always written in a straightforward manner; however, strict adherence to these laws is required. It’s unfortunate that something as simple as using the wrong font can invalidate the rights of a lien claimant, but the laws are in place to protect all parties.”
Don’t miss these upcoming webinars!
February 10, 2015 brought to you by NCS & ASA (American Subcontractor’s Association): Mechanic’s Liens: Protect & Collect – This webinar examines mechanic’s lien laws and how subcontractors can use them to protect themselves from losses and get paid sooner. Learn what tools are available to minimize your risk.
February 11, 2015 brought to you by NCS: Understanding Lien Waivers – Lien Waivers generate a “check & balance” system for project payments in exchange for work or material provided. Does your company have a solid understanding of the basics of lien waivers?