In the world of vessel ownership, a notice of claim of lien is a really important document in the overall lien process. It essentially serves as a formal notice that informs the relevant parties that a lien has been or is about to be placed on an asset due to unpaid services or debts. If you want to find out more about this specific process, then keep reading and you will discover exactly how a notice of claim of lien fits into the wider lien process.
Preparation and Intent to Lien
Before filing a Notice of Claim of Lien, the party seeking payment needs to meet a certain amount of requirements and deadlines. These include things like sending interior invoices and notices, documenting all of the work that has been provided, and attempting to resolve the payment issue through negotiation. A notice of intent to lien can also be sent, which is essentially a final warning to the non-paying party.
Filing the Notice of Claim of Lien
If initial attempts fail to resolve the issue, then the next step is filing the Notice of Claim of Lien with the appropriate government authorities. This will require specific procedures varying on the jurisdiction, but the general information included will be details of the owner’s name, details of the claimant, the amount owed, and descriptions of the work provided. Once submitted, this formalized the claim.
Once the claim has been filed, the owner of the vessel and other relevant parties will receive it. The notice informs them about the existence of the lien, the amount that is being claimed, and the steps that need to be taken next.
Resolution Or Legal Action
Once the lien is received, the parties have the opportunity to resolve the payment issue through negotiation, and if paid off then the lien can be released. If the matter remains unresolved, however, then this is the state in which legal action can start to proceed, including events like foreclosure or forced sale of property in order to satisfy the debt.
If the dispute escalates even further, then the lienholder can begin proceedings that will enforce the terms of the lien. This will typically involve a lawsuit that aims to obtain a judgment against the property.
Once the outstanding debt has been paid off or the dispute has been resolved in a manner satisfactory to both parties, the lienholder becomes responsible for the removal of the lien by filing a Release of Lien document. It is important to do this in order to ‘close the case’.
If you need any kind of assistance regarding a notice of claim of lien or the filing, checking, and processing of any paperwork and documentation related to your own vessel, then don’t hesitate to get in touch with and utilize the services of the US Vessel Registrar. Feel free to contact a member of our experienced team and they will be more than happy to talk you through all of the processes and services that we offer. We look forward to being able to assist you with whatever you need.