Best Tax Attorneys in Melbourne, FL

When a property owner files for bankruptcy, one key concern is how existing liens, including mechanic's liens, will be treated. The automatic stay provision in bankruptcy law temporarily halts most collection activities, including actions to enforce mechanic's liens. However, this does not mean the lien is automatically discharged. A mechanic's lien is a legal claim against a property that has been remodeled or improved. Mechanics, contractors, and other building professionals may file these liens when they have not been paid for their services or materials. This ensures that they have a way to secure payment by claiming a right to the improved property. Mechanic's liens can significantly impact property transactions, as they can delay sales or refinancing efforts until resolved.