what happens if my lawyer puts a lien on my house because i cant pay them

by Dorcas D'Amore 3 min read

If the client does not pay the fees that are due, the attorney may obtain his fees through the sale of the property. The two basic types of attorney's liens are called charging liens and retaining liens. In many places, lawyers have the right to attorney's liens that help to protect them from losses due to non-payment.

Full Answer

What happens if someone puts a lien on Your House?

If someone puts a lien against your house, they are making a claim that you owe them money and until it is paid, they have a right to a portion of your home value. While you should always try to reconcile any lien on your property, if you are not selling your home in the immediate future, there is no rush.

Can a lawyer file a lien if you already paid?

If you’ve already arranged payment, or if your attorney never even gave you an accounting of what he thinks you owe, a lien would be inappropriate and/or premature. If those requirements have been met, the attorney can then file a notice of lien, setting forth exactly what he thinks he’s entitled to and his request as to how he’ll receive it.

Should I Sell my House if a contractor puts a lien?

Should I Sell My House? If a contractor puts a lien on your house, you’ll have to fight to keep your house out of foreclosure. Here’s how to defend yourself.

Can the IRS place a lien on my home?

For example, the Internal Revenue Service (IRS) may place a lien on your home if you have unpaid federal taxes. 1 First, the agency informs you in writing about your obligations. If you don’t reply, or if you fail to make suitable arrangements to pay off the debt, the IRS may then place a lien on your home or other assets.

Have A Construction Lawyer Check The Lien

“Contractors have to follow certain procedures for the lien to be valid,” says Tampa attorney George Meyer, past chair of the American Bar Associat...

If The Lien Is Valid, Here Are Your Options

Your lawyer will help you decide whether to fight the lien in court or negotiate a settlement. The decision depends largely on which state you live...

What Does Legal Action Cost?

You’ll be looking at legal fees that range from $5,000-$15,000. For small disputes, it may be worthwhile to negotiate a settlement rather than goin...

How to Avoid A Lien With A Lien Waver

The best way to protect yourself from a mechanic’s lien is with a lien waiver. This is a legal document furnished by the contractor or subcontracto...

If You Decide Not to Collect Lien Waivers

Ask your general contractor whether he’d allow you to pay each of his subcontractors and suppliers directly. This won’t totally protect you from li...

What happens if a contractor puts a lien on your house?

If a contractor puts a lien on your house, you’ll have to fight to keep your house out of foreclosure. Here’s how to defend yourself. Here’s a scary scenario: You’ve just completed a home improvement project and paid the contractor in full for the work. But the contractor skips out without paying one of his subcontractors.

How to avoid a mechanic's lien?

How to Avoid a Lien with a Lien Waver. The best way to protect yourself from a mechanic’s lien is with a lien waiver. This is a legal document furnished by the contractor or subcontractor at your request. There’s no cost to you and no need for an attorney to review it first. By signing a lien waiver, a contractor or subcontractor agrees ...

Can a subcontractor sue you for breach of contract?

If you haven’t followed every payment procedure spelled out in the statutes, you may be required to pay a subcontractor who's filed a lien, even if you’ve already paid the general contractor for the work. The contractor could sue you for breach of contract in a separate proceeding even if you get the lien thrown out.

Can you fend off a lien on a construction contract?

The decision depends largely on which state you live in. In some, you may be able to fend off a lien if: You prove that you've paid your construction bills fully and on time. You prove that the contractor who filed the lien has breached his contract and doesn’t deserve to be paid.

Can a contractor mark up the work?

The contractor may say no to this arrangement so he can mark up the various elements of the job at his discretion. Or he might be fine with it, since it saves him some housekeeping work -- and means he doesn’t have to lay out the money required to pay their bills before receiving his pay from you.

Do you need an attorney to review a lien waiver?

There’s no cost to you and no need for an attorney to review it first. By signing a lien waiver, a contractor or subcontractor agrees that they've been paid in full for work completed and that they no longer have the right to file a lien against your house.

How to remove a lien on a house?

There are multiple ways to remove a lien from a home. The first is to settle the matter with the lienholder. The settlement process depends on the type of lien, the relationship between the debtor and the lienholder, and the value of the lien.

What is a lien on a property?

A lien is a legal right or claim against a property by a creditor. Liens are commonly placed against property, such as homes and cars, so that creditors, such as banks and credit unions, can collect what is owed to them. Liens can also be removed, giving the owner full and clear title to the property. Liens limit what the owner can do ...

What is a general judgment lien?

General judgment lien. This type of lien is granted to a creditor after a court rules in the creditor’s favor. When a debtor fails to meet their financial obligations, the creditor may decide to sue the debtor in court for any outstanding balance that remains.

What is a lien on a mortgage?

A bank takes out a lien when a borrower is advanced a mortgage, making this a voluntary lien. For involuntary liens, a creditor may seek legal recourse by filing a lien with a county or state agency if a borrower defaults on a loan or other financial obligation. Liens can be placed by a contractor, a government agency, or another kind of creditor.

What is a lien?

Key Takeaways. Liens are legal claims against property by creditors that allow them to collect what they’re owed. Liens can be general or specific, and voluntary or involuntary. If a homeowner doesn’t settle an obligation, then the lienholder may legally seize and dispose of the property.

What are the different types of house liens?

Types of House Liens. There are several different types of liens, such as specific or general liens . Specific liens are attached to one particular asset. The car dealer where you buy your car, for instance, may have a lien on your vehicle and nothing else.

How long do liens stay on your credit report?

A lien may still show up on your credit report even if it’s paid off—usually for up to seven years. 3. However, not all liens put a dent in your credit score. For example, a consensual lien that you have on a home or car that you’re still paying off won’t show up on your report. The same applies to tax liens.

What happens when an attorney is discharged?

When an attorney is discharged and/or allowed to withdraw from a case, he still maintains the duty to protect his former client’s interests through the transition to new counsel, including providing case file information to the new attorney.

When is a lawyer required to withdraw?

Required Withdrawal: A lawyer is required to withdraw if representation violates the law or any of the Rules of Professional Conduct, if he’s physically or mentally incapable of representing the client, or if the client discharges him.

Can a lien be denied if you fail to pay?

Whether you’ve failed to pay him or not, your attorney is still ethically obligated to avoid prejudicing the interests of your case. This basic rule applies very differently depending on the circumstances, but if the lien might hurt your chances in court, there is a higher likelihood that it will be denied.

Can an attorney withdraw from a case on the eve of trial?

Permissible Withdrawal: Withdrawal is also allowed for many reasons so long as there is no harm done to the client’s interests – so an attorney who wants to withdraw on the eve of trial will likely need to state an extremely good reason for doing so.

Can an attorney file a lien on my fees and costs?

Your attorney’s ability to file a lien for his fees and costs may hinge, among other factors, on whether his withdrawal was reasonable. If, for example, he withdrew from your case without giving a reason (or because he decided to become a professional golfer instead), and his withdrawal damaged your case, the court may well support you in your decision not to pay him for the work he did. If, however, his withdrawal was necessary or reasonable and if the court approved the withdrawal, it is likely that he will be able to recover reasonable fees and costs for the work he did, according to the terms of your contract.

What happens if someone puts a lien on your house?

If someone puts a lien against your house, they are making a claim that you owe them money and until it is paid, they have a right to a portion of your home value. While you should always try to reconcile any lien on your property, if you are not selling your home in the immediate future, there is no rush.

Why do you want to have a lien satisfied?

You want to have the lien satisfied to clear the title. Satisfy the lien by paying the lien holder what is owed. For example, if you owe back taxes, pay the IRS.

What are the two types of liens?

Types of Liens. There are two classes of liens: voluntary and involuntary. The voluntary lien is one you willingly enter into. Voluntary liens include your mortgage notes including the first mortgage, home equity loans and home equity lines of credit.

What to do if you don't win a title?

If you don't win, attempt to settle the lien with the lien holder for a lesser amount or just pay them. If you are selling, the only option is to have the lien released.

What happens if someone puts a lien on your house?

What To Do if Someone Puts a Lien On Your Home. A lien on a house is a legally recorded claim against your property that secures a debt. Unless you pay the debt and have the lien removed, you may be unable to sell or refinance your home. There are several different types of liens that creditors can file, and you may find ...

How to remove a lien on a house?

How Do I Remove a Lien? If you have a lien on your home as the result of money you owe, then pay the debt and the claimant will lift the lien. If you believe a lien is bogus, go to the courthouse and get a copy of the case file.

What happens if you don't pay your property taxes?

Tax liens: You may also find liens on your property if you fail to pay your property taxes or income taxes, which includes federal, state, and city taxes. The liens usually include the past-due taxes, as well as penalties and interest. While a tax lien can also lead to foreclosure, the lien generally sits on the home until the debt is paid.

How long does it take for a mechanic to file a lawsuit?

If a subcontractor files a mechanic’s lien on your home, then he has up to 12 months to start a lawsuit. If he does not, then the lien disappears. You can speed things up by filing a notice of contest with the court. Once you do that, the subcontractor has 60 days to file a lawsuit or the lien goes away. Share.

Is it easier to remove a tax lien than a state?

Though it may sound counter-intuitive, federal tax liens are generally easier to avoid and remove than state or municipal liens. The IRS would rather work with you to pay off the debt than take your property, even though it filed 708,000 notices of federal tax liens in 2012 alone. If you have a tax lien from the state, county, or city, ...

Can you lose your home over a lien?

Though you probably won’t lose your home over it, the lien will show up in a title search. You can also find yourself in hot water if you don’t adhere to the local housing code or you have environmental control board violations, such as not fixing a home hazard or letting garbage pile up on your property. The laws on liens vary from state to state.

Can a lien on a home lead to foreclosure?

While a tax lien can also lead to foreclosure, the lien generally sits on the home until the debt is paid. Mechanic’s liens: If you fail to pay for the services of a gardener, plumber, electrician, or other types of home contractor, you may find yourself with a mechanic’s lien on your home. Be careful when signing contracts, as you may unwittingly ...

3 attorney answers

If your house is your homestead -- meaning that the house is in your name and you live there, you are protected by the homestead provisions of the Texas Constitution and Chapter 53 of the Texas Property Code.

Brian W. Erikson

There are several things that may assist you, including but not limited to retaining payments otherwise due your contractor under the contract (if allowed), complying with statutory retainage, bonding around the lien, issuing a joint check, demanding release of the lien, and other potentially available remedies depending on your particular circumstances.

Richard Scott Alagood

You need to speak with a real estate attorney as soon as possible.

What is a mechanics lien?

This is called a mechanics' liens. The creditor, like a credit card company or individual, can sue and obtain a judgment against the property owner. The lien against the property must be paid before the property owner can sell his house or building. Therefore, it's important to talk to a real estate lawyer to find out how to fight ...

What is a nonconsensual lien?

A debtor doesn't have to agree to a lien on his property. A nonconsensual lien is liens placed on the property without his consent. For instance, one creditor is the county where the debtor lives. The lien, called a property tax, is legally placed on the property.

Can a creditor place a lien on a property?

Answer. A creditor can legally place a lien on property for a variety of reasons. Creditors can place a lien against a certain property owned by a debtor as security for a debt, according to Nolo. Some of the most well-known creditors are a mortgage company or bank.

What happens if a law firm is retained?

Once retained, the new law firm will take over. They will promptly notify the former law firm and confirm that firm’s services are terminated. If a lien has indeed been filed by the former law firm, you can rest assured, soon after you sign a Fee Agreement (Contract) with the new law firm, the attorneys will promptly have the lien rescinded. ...

What happens if you don't file a fee agreement?

If you haven’t filed a Fee Agreement, sometimes referred to as a Contract for Legal or Professional Services, then you do not have a legal obligation to the law firm. Your best bet would be to seek the legal services of another law firm. Once retained, the new law firm will take over.

Prerequisites

Lien Limitations

  • Whether you’ve failed to pay him or not, your attorney is still ethically obligated to avoid prejudicing the interests of your case. This basic rule applies very differently depending on the circumstances, but if the lien might hurt your chances in court, there is a higher likelihood that it will be denied. Contingency fee agreements – the type of ...
See more on wagnerlaw.com

Acceptable Reasons to Withdraw

  • Your attorney’s ability to file a lien for his fees and costs may hinge, among other factors, on whether his withdrawal was reasonable. If, for example, he withdrew from your case without giving a reason (or because he decided to become a professional golfer instead), and his withdrawal damaged your case, the court may well support you in your decision not to pay him f…
See more on wagnerlaw.com

Responsibilities After Withdrawal

  • When an attorney is discharged and/or allowed to withdraw from a case, he still maintains the duty to protect his former client’s interests through the transition to new counsel, including providing case file information to the new attorney. Though the option of retaining case files as security for unpaid fees is often available, it is limited by law, as will be discussed in Part 3. An a…
See more on wagnerlaw.com