Assignment For Benefit Of Creditors / Mechanics Liens

Question 1

What is an assignment for the benefit of C

Answer 1

Alternative to bankruptcy

D assigns all property (non exempt) to an assignee

Assignee sells property and distributed to Cs

Question 2

Assignment for benefit of C procedure

Answer 2

Deed of assignment for benefit of C

Recorded and names assignee

Notify all Cs at least 10 days before

Cs may reject or challenge as a fraudulent conveyance

Question 3

Mechanics lien definition

Answer 3

Lien arising from those who supply labor and materials as part of project, add value to property

Question 4

Mechanics lien procedure

Answer 4

File memo of lien within 90 days from the end of the month work was completed

Send copy to owner

Question 5

Mechanics lien priority

Answer 5

Priority over everything up to 1k

No priority over lien to real estate itself

Question 6

Order to pay out people for mechanics lien

Answer 6

Laborers

Then subcontractors

Then general contractor

Question 7

Limitations of mechanics lien

Answer 7

Mechanic isn’t licensed

No public buildings

Mechanic wasn’t authorized by owner to work

Question 8

How do you perfect a challenge to a fraudulent transfer?

Answer 8

File motion to set aside transfer

Creates a lien