Can you put a lien on a business without tangible assets?

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Can you put a lien on a business without tangible assets?

If a Client owes an Agency 60,000 for services rendered within 1 year and has
failed to pay them, can the Agency put a lien on the Client’s company even though
they do now own many tangible assets? For instance, can the Agency put a lien on
the Client’s high-profile license contract? or monthly earnings?

Asked on March 6, 2017 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Yes, you can put a lien on intangible assets, such as accounts receivable or a contractual income stream; also on intellectual property, if any (e.g. trademarks, copyright, etc.). But you cannot do this unilaterally: you need to sue them, get a judgment in favor (validating in court that they owe you the money), then get an order imposing the lien.


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