What is your success rate?

Commercial Collection Firm of America has an 90% success rate on viable accounts. One of, if not the highest in the industry.

Can you help collect a debt from an individual?

We do not collect from individuals unless the debt was incurred for business purposes.

What customer information is required to start the collection process?

To start the collection process, we need the customer's name, address, phone number, date of the invoice, amount due, and a copy of the most recent statement. Additional documents such as credit applications, contracts, promissory notes, or agreements can be sent after the account is placed. You can place your account by clicking here.

What is your remittance process?

Funds collected between the 1st and 15th will be remitted by 1st of the following month. Funds collected between the 15th and 30th will be remitted by the 15th of the following month.

Will my customer still want to do business with me?

Protecting our client’s brand is a top priority and we stand behind this unapologetically. Our firm represents our clients in a very professional manner. We aim to keep the bridge open between our clients and their customers once they satisfy the balance owed.

CAN YOU PUT A LIEN ON A BUSINESS FOR
NON-PAYMENT?

UNDERSTANDING YOUR LEGAL OPTIONS TO

SECURE OUTSTANDING DEBT

GET A FREE QUOTE

Introduction

You've done everything right. You provided the goods or services. You invoiced the customer. You followed up. The debt is now months overdue. The question becomes: what leverage do you have?

One of the most powerful tools available to unpaid creditors is the lien—a legal claim against a business's assets that gives you priority in getting paid. A lien essentially says: 'You can't sell this asset, refinance it, or do much of anything with it until you pay me.' That's serious leverage.

But not all liens are created equal. Depending on the type of work you did, the amount owed, and your state's laws, you may have access to different lien options. This guide explains the three main types of liens available to creditors, how each one works, when you can use them, and how to enforce them.

What Is A Lien? (And Why It Matters)

A lien is a legal claim against an asset that secures a debt. When you have a lien on something the debtor owns, you have a priority claim to payment from the proceeds if that asset is sold, refinanced, or seized.

Here's why this matters: without a lien, you're just another unsecured creditor competing with everyone else the debtor owes money to. With a lien, you jump to the front of the line. If the debtor sells the asset, your lien must be paid off first.

Example: A contractor completes a $50,000 kitchen remodel on a commercial building. The owner refuses to pay. The contractor places a mechanics lien on the property. Now, if the owner tries to sell the building, refinance it, or take out a line of credit using the building as collateral, the lender will see the mechanics lien and will require it to be paid off first. This pressure often motivates payment.

Three Types of Liens Available to Creditors

Depending on what you provided and your jurisdiction, you likely have access to one or more of these:

Mechanics Liens – For contractors, laborers, and suppliers who provided labor or materials for property improvement
Judgment Liens – For creditors who have obtained a court judgment against the debtor
UCC Filings – For creditors with claims on a debtor's personal property, inventory, or equipment

Type 1: Mechanics Liens (For Construction and Materials)

Who Can File A Mechanics Lien?

Mechanics liens are available to:

General contractors
Subcontractors
Material suppliers
Equipment rental companies
Laborers who worked on the project
Architects and engineers

If you provided labor, materials, or services for the improvement, repair, or construction of real property, you likely have the right to file a mechanics lien.

What Can A Mechanics Lien Attach To?

A mechanics lien attaches to the real property, the building, land, or improvements you worked on. It doesn't matter if the property owner doesn't personally owe you; if they benefited from your work, their property is subject to the lien.

Key Point: A mechanics lien is only as good as the property it's attached to. If the property has no value or is already heavily mortgaged, the lien has limited practical value.

How to File A Mechanics Lien

Mechanics lien procedures vary significantly by state, but the general process is:

Notice Requirements – Many states require you to provide written notice to the property owner within specific timeframes (typically 45-90 days from your first work date). Failure to do this can forfeit your lien rights.
Prepare the Lien Document – Create a formal mechanics lien claim document with the property details, amount owed, description of work, and dates.
File with County Recorder – File the lien with the county recorder's office where the property is located. This typically costs $50-$200.
Timeline – You must file within the statutory deadline (typically 90 days for general contractors, up to 120 days for subcontractors, varies by state).
Notice to Debtor – You must typically provide the property owner with notice that the lien has been filed.

Critical: Mechanics lien deadlines are strict. If you miss the filing deadline, your lien rights are gone. Don't handle this yourself, hire an attorney in your state to ensure you meet all requirements.

Mechanics Lien Timeline and Enforcement

Once filed, a mechanics lien remains on the property and creates significant pressure:

Lender Impact: Any lender considering refinancing or lending against the property will see the lien and won't proceed until it's cleared.
Sale Impact: The property owner cannot sell the property without paying off the lien.
Foreclosure: If the lien is not paid, you can foreclose on the property and force a sale to collect.
Duration: The lien typically lasts 6 months to 2 years (depending on state), but can be extended if you file a lawsuit.

Type 2: Judgment Liens (Post-Court Judgment)

What Is A Judgment Lien?

A judgment lien is created when you obtain a court judgment against the debtor. Unlike a mechanics lien (which applies only to construction-related work), judgment liens can be placed by any creditor who has successfully sued the debtor and won.

The judgment lien gives you a legal claim against the debtor's real property, and in some cases, personal property. If the debtor owns a house, office building, land, or other real estate, you can place a lien on it.

How to Obtain A Judgment Lien

The process requires litigation, but it's straightforward:

File a Lawsuit: You (or your attorney) file a civil lawsuit against the debtor in district or superior court.
Obtain a Judgment: You win the case (or debtor fails to respond), and the court enters a judgment in your favor for the amount owed.
Create the Lien: You file the judgment with the county recorder in the county where the debtor's property is located. This creates a lien.
Duration: The judgment lien typically lasts 10-20 years (varies by state) and can often be renewed.

Advantages of Judgment Liens

Judgment liens are powerful because they:

Apply to any creditor (not just contractors or suppliers)
Can attach to any real property the debtor owns
Last for many years (10-20+ depending on state)
Create immediate pressure (the debtor can't refinance or sell without paying you)
Can be renewed if the judgment is renewed
Can be renewed if the judgment is renewed

Disadvantages of Judgment Liens

Before pursuing a judgment lien, understand the limitations:

Litigation costs money (attorney fees, court costs). You may spend $5,000-$30,000+ to obtain the judgment.
Litigation takes time (6-18 months typical timeline).
The debtor can appeal, extending the process further.
A lien doesn't guarantee payment; you still must enforce it by forcing a sale of the property.
If the property has multiple liens ahead of you (mortgages, property taxes), you may recover nothing.

Type 3: UCC Filings (Secured Claims on Personal Property)

What Is A UCC Filing?

UCC stands for 'Uniform Commercial Code.' A UCC filing is a public record that gives you a secured claim against a debtor's personal property, inventory, equipment, accounts receivable, and other business assets.

Unlike mechanics liens (real property) and judgment liens (also real property), UCC filings target the debtor's business assets. If a company has inventory, vehicles, equipment, or valuable accounts receivable, a UCC lien gives you a priority claim on those assets.

When Can You File A UCC?

UCC filings are typically used in two scenarios:

Secured Loans – A lender has already taken a UCC filing as collateral for a loan (standard practice for business loans).
Judgment Enforcement – After obtaining a judgment, a creditor files a UCC to perfect a lien on the debtor's business assets.

How to File A UCC

The UCC filing process is relatively simple:

Prepare UCC-1 Form: Complete the UCC-1 Financing Statement form (standard form available from the Secretary of State).
Identify the Collateral: Describe the personal property you're claiming (inventory, equipment, accounts receivable, etc.).
File with State: File the UCC-1 with the state's Secretary of State (in the debtor's state of organization or principal place of business).
Cost: Filing costs typically $25-$50. Search fees are additional.
Duration: UCC filings last 5 years and must be renewed if you want to maintain the lien.

Important: UCC Priority

The problem with UCC filings is priority. If the debtor has already granted a UCC filing to a bank as collateral for a loan, your UCC filing comes second. The bank gets paid first from the asset sale. You get paid from whatever is left.

Example: A company owes you $75,000 and also owes a bank $300,000 on a loan secured by all equipment and inventory. You place a UCC filing on the equipment. If the company's assets are liquidated for $200,000 total, the bank gets paid first ($200,000), and you get nothing. The bank had priority because they filed first.

Enforcement Options: What Happens After You File A Lien

Option 1: Leverage for Negotiation

Filing a lien immediately creates leverage. The debtor suddenly realizes you're serious. A lien that prevents them from:

Refinancing a property
Selling a property or asset
Securing financing for business operations
Taking out a line of credit

...often motivates them to negotiate a settlement or payment plan. Many debts are resolved at this stage without further action.

Option 2: Asset Seizure and Sale (Judgment Lien)

If a judgment lien isn't paid and negotiation fails, you can pursue foreclosure. Here's how it works:

Initiate Foreclosure: File a foreclosure lawsuit against the property owner.
Property Sold: The court orders the property sold (usually through public auction).
Proceeds Distributed: Sale proceeds are distributed to lienholders in priority order. You get paid from your share.
Timeframe: Foreclosure typically takes 6-12 months and costs several thousand dollars in attorney fees and court costs.

Reality Check: Foreclosing on a property is expensive and time-consuming. Only pursue this if the property value significantly exceeds all prior liens and you're confident you'll recover your money.

Option 3: Asset Seizure (UCC Filing)

With a UCC filing, if the debtor's business assets must be liquidated (due to bankruptcy, default on other loans, etc.), your UCC filing gives you a claim on those assets. However, you don't typically initiate the seizure—creditors or a bankruptcy trustee does.

If you need to seize assets yourself, you'll need a judgment and a sheriff's execution—another legal process requiring attorney assistance.

Option 4: Bank Account Garnishment (Judgment Lien)

With a judgment, you can garnish the debtor's bank account. Here's the process:

Execute on JudgmentObtain a writ of execution from the court.
Identify Bank AccountDetermine which bank(s) the debtor uses (often requires investigation).
Serve the BankServe the bank with the garnishment notice.
Bank Freezes FundsThe bank freezes funds in the account up to your judgment amount.
Funds TransferredThe bank transfers the frozen funds to you (or the court, depending on procedures).

NOTE: Bank garnishment is often the fastest enforcement option. It can force payment within weeks rather than months. However, if the debtor keeps their account nearly empty, you may recover little.

Common Mistakes to Avoid

Mistake 1: Filing A Mechanics Lien Too Late

The #1 mistake contractors make is waiting too long to file a mechanics lien. The deadline is strict (often 90 days). If you miss it, your lien rights evaporate. File immediately upon non-payment or consult an attorney to preserve your rights.

Mistake 2: Assuming a Lien Guarantees Payment

A lien is leverage, not a guarantee. It doesn't automatically put money in your pocket. You must still enforce it through negotiation, foreclosure, or garnishment—each of which takes time and money.

Mistake 3: Filing a Judgment Lien Without Investigating Asset Value

Before spending $10,000+ on litigation to obtain a judgment, investigate whether the debtor has assets worth recovering. If they own no real property and have no liquid assets, a judgment lien has little practical value.

If you need to seize assets yourself, you'll need a judgment and a sheriff's execution, another legal process requiring attorney assistance.

Mistake 4: Ignoring Priority Issues

A UCC filing is only valuable if you're first in priority. If the debtor has already granted a UCC to their bank, your filing comes second and may recover nothing. Check UCC filings before assuming your lien will be valuable.

Mistake 5: Not Understanding State Law Variations

Lien laws vary dramatically by state. The process, deadlines, and remedies available in one state may not exist in another. Don't assume your knowledge applies everywhere. Hire a local attorney for guidance.

Final Thoughts

Placing a lien on a debtor's business is one of the most effective collection tools available. It transforms the debtor's non-payment from an inconvenience into a serious business problem. Suddenly, they can't refinance, sell, or even access credit without dealing with you.

The key is understanding which type of lien applies to your situation and acting quickly. Mechanics lien deadlines are absolute. Judgment liens require time but offer broad applicability. UCC filings protect against business asset liquidation.

Don't handle lien filings yourself. The stakes are too high, and deadlines are too strict. Consult an attorney in your state to ensure you file correctly and maximize your leverage.

See If Your Account Qualifies

FREQUENTLY ASKED QUESTION'S

Upon receiving your claim, your account will be assigned to a certified commercial collector and a credit-trained private investigator. The debtor will be notified of the ongoing asset and liability investigation and given the opportunity to pay. If the debtor refuses, the investigation will proceed, including face-to-face meetings and contacting vendors, suppliers, and financial institutions to determine suit worthiness. If the debtor still refuses to pay, we may seek your authorization to begin litigation. For more information on the asset and liability investigation, click here.

The answer largely depends on how long you wait to place your customer for collections. Debt is not like wine; it does not get better over time. We collect some debts in as little as the first couple of hours or days of placement, while others may take several years. We do not quit until the company pays their balance, goes out of business, files chapter 7 bankruptcy or a judgment is obtained and executed. The average time usually takes between 30 and 45 days.

Collection activity typically begins within one hour of receiving your placement. You can expect that your debtor will reach out to you to try to stop collections efforts. If this happens, you must refer them back to our office. Your dedicated account manager will be reach out to you within 24 hours and keep you updated on your accounts from the beginning of the collection process to the end. Place an account by clicking here.