Things That Happen When You Need To File a Notice of Claim of Lien

Notice of Claim of Lien

If you’re a US vessel owner, you know it’s essential to file a Notice of Claim of Lien (NOCL) whenever work is done on your boat. The boat owner is usually responsible for paying for necessary repairs or replacement of any equipment on board in case of an accident or casualty. If the vessel is damaged due to the owner’s carelessness, the owner must pay for the repairs.

Consider submitting a Notice of Claim of Lien before beginning work to secure your financial interests against such costs. Should the vessel owner fail to make payments on a debt, the creditor with a security interest in the documented vessel may file a Notice of Claim of Lien. Generally speaking, legal representation is not required to file a Notice of Claim of Lien.

It is essential to understand how bankruptcy will impact your claim and whether or not it will be recorded in public or private records before filing. Here are some scenarios where a Notice of Claim of Lien would be necessary.

The Process Will Go Smoothly, and You Will Receive the Lien Waiver in Return

If you have worked on many projects for the same customer and are concerned about being paid, or if the terms of your payment are otherwise murky, submitting a Notice of Claim of Lien may be your best course of action. Everything will go down without a hitch, and you’ll get your lien waiver.

This is the best-case scenario, but until you make your claim, you won’t know for sure. Before a claim may be registered on real estate, a notice of the claim must be submitted, published in a local newspaper (or other media if required by state law), and signed by specific persons. There is a 15-day window for your customer to reply to your claim.

They may do so by filing a lien waiver or posting a response in a local newspaper or other media (s). These may be costly to produce and are typically only worthwhile as a last resort to avoid paying the debt. If this is the case, you should contact them immediately to discuss the payment terms and make any necessary revisions to your contract.

The Other Party Will Dispute the Validity of Your Notice of Claim of Lien

The opposing party’s challenge to the merits of your claim is a common issue. Some individuals will act in this manner hoping to get away with it or because they believe the plaintiff won’t pursue legal action.

Another possibility exists that when they submit their official response documents, they do so without fully comprehending the implications. Know what to expect from these sorts of reactions so that your case goes as smoothly as possible. A knowledgeable attorney should be consulted before submitting a Notice of Claim of Lien if one has not previously been filed.

After all, making errors along the process might impair your capacity to be compensated for your damages or losses after it’s all said and done. For instance, delivering a piece of equipment might result in a rejection and a request for its return. If you’ve returned the item but haven’t been paid, filing a lien on the item may be your best defense against being stiffed.

They Will Ignore or Refuse to Respond to Your Claim

It’s discouraging when the intended receiver of a Notice of Claim of Lien either doesn’t react or actively opposes the claim. You may feel your efforts have been wasted, but there are methods to turn things around.

Liens are subject to specific unique regulations in the state of Washington. If you have items that belong to someone else but they owe you money, you may file a lien to claim ownership of those materials once a specific period has passed since you filed the lien.

Return privileges will be revoked if payment is not received within that time frame. Don’t let their denial or disregard of your claim deter you from submitting it if you need the money. Remember that each day they don’t answer or pay is another day they lose the right to have those items back.

Notice of Claim of Lien

They Will Contact You and Try to Negotiate a Settlement

It’s a stressful need to submit a Notice of Claim of Lien from time to time. For others, the most trying element is worrying about what will happen if things don’t go as planned or if the process seems to be taking too long.

What kind of response do you expect from them? When they attempt to bargain, what will happen? The thought of having to file a claim of lien is the greatest nightmare of anybody, and now you’re thinking how much worse things may go. It’s excellent news that things aren’t necessarily hopeless in that respect.

The filing of a Notice of Claim of Lien indicates a severe problem with the underlying contract, and the filing party may feel they have no alternative but to take legal action. Because they care about their reputations and those of their contractors, the opposing party is likely to approach you to settle.

If you need to file a Notice of Claim of Lien, contact Vessel Documentation Online LLC by calling (877) 564-1398 for more information. Our customer service representatives can answer your questions and help you with the process.