Full question:
In recording a lien for non-payment of services, must one stop providing services before the lien can be recorded? In other words, if it is of value to the provider to continue to provide services even though the initial portion has not bee paid for, MUST those services stop before a formal lien can be recorded? I am located in New Jersey. The issue is taking place in San Luis Obispo, CA. The services rendered are consulting services in which we have a financical interest after completion.
- Category: Civil Actions
- Subcategory: Liens
- Date:
- State: California
Answer:
If the services do not involve improvements to real property or related architectural and surveying work, you typically need to obtain a judgment for breach of contract before recording a lien. This means that after a judgment is granted and remains unpaid, you can then request a lien on the debtor's property.
There are various types of liens that can affect property titles. For instance, a mechanic's lien applies to vehicles repaired, while a judgment lien arises from a court's decision granting a creditor an interest in the debtor's property due to an unpaid judgment. To file a judgment lien, you must first secure an actual judgment from a court. This applies to debts such as unpaid credit cards or loans.
If the judgment is not paid, the judgment creditor can request the court to place a lien on the debtor's property, which may include bank accounts or real estate, to secure payment. The next step is often to conduct a sale of the attached property to satisfy the debt.
Additionally, a judgment creditor may seek a writ for garnishment of the debtor's wages, requiring the employer to withhold a portion of the debtor's earnings to pay the debt. Wage garnishment procedures vary by state, and certain types of income are exempt from garnishment.
In summary, you generally must stop providing services and obtain a judgment before recording a lien for non-payment of services rendered.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.