- October 02, 1989
- All Alaska, Oregon and Washington Agents
- Mechanic's Liens
The Ninth Circuit Court of Appeals has ruled that bankruptcy tolls the statutory period for filing suit to foreclose a mechanic's claim of lien. In re: Hunter's Run Ltd., 875 F. 2d 1425 (1989). This case reverses earlier decisions by bankruptcy courts in Washington and Oregon.
The statutory period for filing suit is six months in Alaska (AS 34.35.080), 120 days in Oregon (ORS 87.055) and eight months in Washington (RCW 60.04.100).
You should be very cautious before eliminating a recorded claim of lien because this period has expired. A bankruptcy by the owner or other party responsible for the lien, such as the general contractor, will keep the lien in effect and extend the time for foreclosure.
Please contact me if you have any questions.
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