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We filed a mechanics lien, now the debtor wants to make partial payment. How do we partially reduce the lien?

Indianapolis, IN |

The debtor wants us to cancel the lien entirely and re-file it as a new lien, but we're afraid this will result in us having a new lien on the books that is filed late. Also, we're afraid that amending the lien claim will also cause the lien to be late, as the amendment will be dated after the lien deadline. A "partial dismissal / cancellation" of the lien seems to be the best bet - am I right about this? What do you think?

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Attorney answers 2


Mechanic's liens are operation of State law, so it may vary from state to state. That said you can record a partial release of the lien.

The above statement does not create an attorney-client relationship and the submitting party should not consider the responding their attorney.


Because the debtor is only paying a portion of the lien debt, I would suggest you record a partial release of lien with the county recorder's office. If you are here in Marion County, you may be able to get a standard form to do so from the County Recorder's Office, in the City-County Building. If they do not have a form, they may be able to point you in the right direct, with regard to what should be recorded.

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