If you are a business owner who provides home improvement services or supplies, you know how frustrating it can be when homeowners fail to pay for the improvements made on their home. Unpaid invoices can create a serious cash flow problem for your company, especially if you have already provided supplies and services and no payment has been made.
Collecting on unpaid debt is possible, and when you work in the home improvement industry there are additional tools you can utilize. Mechanic’s Liens are specifically created for collecting on unpaid invoices by homeowners who are improving their home.
How a Mechanic’s Lien Works
A mechanic’s lien allows for businesses within the construction industry to ensure they are paid for the services or goods they provide. The first step to collecting on unpaid debts is giving a 20 to 30 day notice to the homeowner, allowing them the opportunity to arrange to make payment on the goods.
Next, the business must file a claim of the mechanic’s lien, which is enforcing payment on the debt. This document must be filed between 60 days and six months after the goods or services were provided. If this time frame passes, the lien will be considered invalid.
Why Hire a Lawyer to Handle a Mechanic’s Lien
In general, contractors and suppliers within the construction industry will find that collecting on unpaid debt is possible but it is not easy. A debt collection lawyer has extensive experience working with mechanic’s liens and fully understands the strict guidelines surrounding this method of debt collection.
If you are a supplier or contractor working in Atlanta and the surrounding areas and you are struggling to collect on unpaid debt, considering hiring a debt collection attorney to help you file and enforce a mechanic’s lien. To learn more about your options for collecting on unpaid debt, click here or call 678-566-6800 to speak with an attorney at Howe & Associates Debt Collection Attorneys.