How do I file a lien on the personal property so I call sell it to cover the storage costs?

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How do I file a lien on the personal property so I call sell it to cover the storage costs?

I own a company. It removes and stores personal property for property owners and tenants when they have a fire or water damage insurance claim at their property. I store the belongings at my facility. I have a few parties not paying the bill.

Asked on January 6, 2012 under Bankruptcy Law, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

First, do you have a written contract stating that you have a lien on the items that you are holding for these third parties? if you do not, you cannot file a lien on these items until you have a judgment for a specific amount of money which results after you have filed a lawsuit.

If your contract states that you have a lien on the items in your possession, then you have an automatic lien on the items. All you need to do then is to send written notice to the owners of the property of your intent to dispose of the items through an auction. Your state has a process through statute as to notice requirements and disposal requirements of liened items. For further assistance on the topic that you are writing about, I suggest that you consult with an attorney that practices law in the debt collection field.


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