Legal Question in Construction Law in New York

Re: how to protect myself

The only way to protect yourself is to have a mortgage prepared and filed. A mortgage is not dischargeable in bankruptcy and can be foreclosed to ensure payment. A promissory note or a mechanics lien may be able to be discharged in bankruptcy.

Before you finish the job you should have all of the documentation signed, sealed and delivered.

If you would like to discuss this matter further, please feel free to contact me.

We also do collections on bad debts and are very familiar with the problems you are facing.

Re: how to protect myself

If payment will be within a year, you can file a mechanic's lien which will secure your right of payment through the sale of the house. I would also draft a basic promissory note directing how payment is to be made. Language should also be placed in the note stating that upon full payment the mechanic's lien will be discharged.

Mike.