Home>Levelset Community>Legal Help>Hi, so if i have a customer who bonded my lien. Then whats the next step for me to collect my money?

Hi, so if i have a customer who bonded my lien. Then whats the next step for me to collect my money?

1 reply

Jan 31, 2020

Bonding-off a lien is just a mechanism to shift the property encumbered from the actual property improved to the bond itself. When submitted in order to bond off a mechanics lien, the "pile of money" represented by the bond takes the place of the improved property as the security for the claim. So, just like a mechanics lien must be enforced by initiating a lawsuit within a certain time period, a lawsuit to enforce must also be initiated within the same time period when a bond is provided to take the place of the property. Additionally, just like with the original lien claim, the time to enforce when the lien is bonded off in New York may be extended, provided the extension is filed within the appropriate time period. This means that the next step in collecting money when a lien is bonded off is basically the same as the next step to collect money when the lien was left as-is: an enforcement lawsuit. There is a split in New York courts with respect to the parties required to be included in an enforcement action when a lien is bonded off, some require the property owner and some do not. Since an enforcement action is a full-blown lawsuit, it is best practice (or required) to have an attorney assist with the process, s/he will be able to help with the nuances of the suit itself.

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