How to Fight An Attorney Lien – An attorney’s lien is a legal claim or right a lawyer has to hold onto his client’s assets or money.
This type of lien may be active when a client is indebted to attorney money, and it might be cleared once the money is paid in full.
For instance, if an attorney is owed compensation for services performed on behalf of his user, he might have an attorney’s lien on real estate the client owns.
If the client does not pay the fees that are due, the attorney may obtain his fees over the sale of the property. The two basic kinds of attorney’s liens are called charging liens and retaining liens.
How to Fight An Attorney Lien?
In several places, lawyers have the right to attorney’s liens that support protecting them from losses due to non-payment.
Attorneys typically earn money by gathering legal fees in exchange for legal document preparation, representation, and advice. In some cases, clients might pay their attorneys for their services upfront.
This is not always the case, though, and an attorney may have to wait to receive his fees at the end of the case or once a settlement is made.
An attorney’s lien permits an attorney to hold onto or make a claim against a client’s assets until he has established payment.
One kind of attorney’s lien is called a charging lien. This kind of lien is made against a settlement or judgment a client obtains.
Basically, a charging lien means the attorney has the right to part of the settlement a client receives because of the attorney’s advice and representation.
Frequently, a charging lien is a percentage of the amount the client receives. If the client receives money or assets for a separate action, though, the attorney may not have a right to such assets or funds.
A retaining lien is another kind of attorney’s lien. With this kind of lien, an attorney might have a right to any money or property the client receives during a case, unrelatedly to whether it is related to the legal action in which the attorney is tangled. The attorney recalls the right to the client’s assets until he has been remunerated for the legal services he achieved and advice he provided.
Occasionally the asset a lawyer holds onto as an attorney’s lien is money. For instance, settlement money may not be released until the attorney is paid the amount that is due to him. In other cases, however, a lawyer might hold onto a client’s property. For example, he may keep the deed to a person’s home until he has been paid as agreed.
How can you Negotiate to Discount a Lien?
- A lien, laying a legal claim on another’s property to shelter the payment of a debt or the satisfaction of an obligation, is a very thoughtful situation, particularly for a small business. Tangible assets might have a lien placed against them; paying off a high-dollar debt may seem impossible, particularly if the company is already struggling. While it is best to try to negotiate before a lien has been placed on property or assets, this might not always be possible. However, you can negotiate to discount a lien and make arrangements to keep your business operating smoothly.
- Contact a tax or business attorney. You have legal rights and an attorney can guide you on the best course of action, as well as offer you information on whether or not the lien is valid.
- Contact the creditor straight. Ask to speak to a manager, or the person accountable for placing the lien. Let him know that you want to pay off the debt and right the situation, but that the current lien is indefensible.
- Arrange a discount that is appropriate to both parties. Creditors know they might never get the full amount owed to them, even with a lien. Be frank about your current situation and your desire to offer a solution that will support the condition and at least pay off some of the debt. If you can offer a full cash payment for a portion of the lien, they may be willing to discount the amount allocated and accept what you have to offer.
- Offer them something in return. If you cannot pay the discounted lien in full, offer to automatically deposit a precise amount of money every month and secure it with something other than your business stuff or assets. Again, creditors would rather see something than nothing.
- Broach the subject of bankruptcy. If your business states bankruptcy, a creditor’s lien may be worthless. If there are no other substitutes, let the creditor know that this is something your company is seeing, but that you would rather work out a deal with him before taking that step.
FAQs on How to Fight An Attorney Lien:
How can you Remove An Invalid Lien in Florida?
If you wish to eliminate a lien from your property, you need to do one of two things: 1) you need to have the contractor record a release of the lien, or 2) you can simply file an appeal to have the lien released.
What is a Charging Lien in New York?
A charging lien is a safety interest in the auspicious result of litigation giving the attorney equitable ownership interest in the client’s cause of action and safeguarding that the attorney can collect his fee from the fund he has formed for that purpose on behalf of the client.
How do I contest a lien in California?
The homeowner might petition the courts under Civil Code Section 8480 in California to eliminate the mechanic’s lien when it is not appropriately issued or recorded. A lawsuit is typically necessary to file against the owner by the contractor or subcontractor.
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