Q: subcontractor put a Mechanics Lien on my property after I have paid full price to contractor I hired upon project done.
I only signed contract with the contractor and he is bankrupt now. what should I do?
A: Dear Owner with Subcontractor Lien: The threshold question for proper legal analysis pertaining to the Subcontractor is whether or not the subcontractor sent to you, or tried to send to you, a certified mailing containing the proper notice that is required prior to recordation of a lien (it's called "Notice of Intent to Lien"). The other threshold question related to the Subcontractor would be to score the number of days the subcontractor had to lien the project, assuming a proper Notice was sent to you. These questions should be examined by an attorney experienced in lien work in Colorado. Next, you also have the possible pursuit of your General Contractor for fraudulent diverting the owner's payment [to itself, rather than to the subcontractor] and there are state statutes that strictly forbid that conduct. That discussion is "involved" and fairly complex, so again you could consider using counsel to assist you if you're inclined to pursue the General Contractor. First, though, you might be able to get the lien removed (see above) depending upon the answers to the questions raised here. JAMES GREER.
A: I agree with Mr. Greer. Additionally, if the contractor violated the trust fund statute, you can have the debt declared non-dischargeable by the bankruptcy court and get triple damages and attorney fees.
James A. Greer agrees with this answer
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