I have a question about a lien I already enforced; total amount of this lien was for 314k, but the customer wants to make payment plan for this. Initial payment would be 100k, and then another 100k the next month, and so on. my question is : once this project was lien, can we stop the lien, and re-lien for a shorter amount? in case the customer does not pay as agreed the remaining amount? I need some explanation how to handle this type of situation where the customer cant pay the total amount of the lien, but agreed to be on payment plan. thank you.
It's extremely common for a customer to request to pay off a lien claim via repayment plan. And, as long as the right guardrails are in place, that could be a really effective solution for getting paid. Still - it's extremely important to ensure that the right to receive payment is secured. Just as it's common for a customer to request a payment plan, it's equally common for a customer to promise to make payment and then reneg on that promise. Levelset discusses that topic here: If I’ve Been Promised Payment, Should I Wait to File a Mechanics Lien? That article won't be exactly on point with the above issue, but the general theme stands true: Promises to pay are no substitute for a lien.
If a customer is requesting to enter into a payment plan, it's important to get that agreement in writing. Generally, that contract should include the schedule of payments and should set out the interest rate for those payments. Additionally, such an agreement will generally include some time of security - like a promissory note, a personal guaranty, a settlement agreement with a confession of judgment, or a voluntary lien against personal or real property. More on those options here: Creative Options To Secure A Party’s Promise To Pay.
There may also be some other options as opposed to wholly releasing the lien - like amending the lien claim or attempting to partially release the lien. New York specifically allows for certain portions of land to be released from lien claims at section 19(1) of the state's lien statute - but that section doesn't seem to specifically address partially releasing the lien amount. Still, partial lien releases (on the amount) aren't entirely uncommon. As for amending a lien - New York liens can be amended if done within 60 days of filing, as long as Notice of Amendment is given and as long as a lawsuit to enforce or cancel the lien hasn't been filed. Regarding the ability to refile a lien: Generally, a mechanics lien can be refiled after it's been released as long as (1) the deadline to file a lien hasn't passed; and (2) the lien release doesn't prohibit future claims (e.g. if all lien rights for the project are released, rather than just the specific lien document being released from the record, then a future claim might not be possible).
As a last and final note: Keep in mind that mechanics lien claims are meant to make other parties uncomfortable. And, generally, a lien claimant doesn't have to release their lien claim until they've been paid what they're owed. So, it's important to keep that in mind when considering what to do with a filed lien when the customer is trying to negotiate via partial payment. At the very least, it should be possible to negotiate favorable terms on a written payment plan that includes payment security and interest.
For further discussion on mechanics liens and partial payment, this article should help: After Partial Payment, What Should You Do With Your Mechanics Lien?