Can we protect ourselves from a lien after filing bankruptcy?

Full question:

I have a complex question. My husband and I filed bankruptcy. Our meeting of the creditors was June 2. My husband was a plumbing contractor. He did a job for a General contractor. We filed bankruptcy on the company that provided the materials for that job. Now the company that provided the materials is seeking a lien on the general contractor. The general contractor; however, does not own the property and there were no contracts for services between any of the three of us. To protect ourselves do we file an amended matrix against the general contractor? And is he protected from the lien because we signed lien release waivers upon getting paid? Also do they have the right to file a lien against the contractor? I would assume that once the lien is filed the general contractor would be able to sue us for the money, which is why I would put him on the Amended schedule C to protect ourselves from that. Is that correct? I am in the state of Maine, county of Franklin.

• Category: Bankruptcy
• Date: 04/07/2025
• State: Maine

Answer:

In general, a party providing labor, materials, or services without a contract with the property owner (a subcontractor) can claim a lien for the value of those services. However, the property owner can defend against this claim by arguing that the subcontractor is only entitled to a lien for the remaining balance due on their contract with the principal contractor. This defense applies only if the owner has paid the contractor before the subcontractor files suit or provides a Notice to Owner, which alerts the owner of their responsibility to ensure the subcontractor is paid.

In Maine, if a party provides labor, materials, or services without a contract with the property owner, the owner can deny responsibility through a written notice. A Notice of Furnishing must be filed within ninety days after the work ceases to preserve the lien. This notice should be filed with the register of deeds.

To establish a valid lien, the claimant must have ownership or a right to it, and the lien must arise from an agreement, either express or implied. In some cases, the lien holder may foreclose on the property if the debt remains unpaid. Liens can usually be removed by paying the owed amount, which can happen up to the point of closing documents for a property sale.

Different types of liens can affect property title, including judgment liens, which arise from court judgments related to unpaid debts. In bankruptcy, a claim is broadly defined as a right to payment, including contingent or disputed claims (11 U.S.C. § 101(5)). A creditor is defined as an entity with a claim against the debtor that arose before the bankruptcy filing (11 U.S.C. § 101(10)).

For specific statutes, see 10 M.R.S.A. § 3251, which outlines lien rights for those who perform labor or furnish materials.