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How to protect against lien

TennesseeMechanics Lien
John Tupper
Carpenter at Tupper's Wares

My elderly grandfather has contracted construction on property owned by my wife and I. The contractor didn't bill him for five months and now two weeks after billing is threatening to put a lien on our property. I don't have the funds available to cover the contractor and my grandfather. What can I do to protect my family and property?