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Lien Could Be Perfected After Bankruptcy Filing Liens

Tuesday, December 02, 2003 06:05 pm

 
Lien Could Be Perfected After Bankruptcy Filing Liens

A federal bankruptcy court has ruled that when a mechanic's lien accrued prior to a project owner's Chapter 11 filing, the contractor could perfect the lien after the bankruptcy petition despite the automatic stay provision of the bankruptcy statute.

Stein & Gianott, Inc. (S&G) owned and operated a medical waste incineration plant in West Babylon, New York. Nicholson Environmental, Inc. furnished labor and materials to S&G's facility. Subsequently, S&G filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code. Nicholson was unpaid at the time of the filing.

Nic [...]

 
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