Legal Question in Credit and Debt Law in Texas
Material & Mechanics Lien
We filed an M & M lien for parts and labor on a piece of Heavy Equipmt. The equipmt. is financed and that company wants to repossess. Can they do that before our claim is settled? The equipmt. is at our place of business.
1 Answer from Attorneys
Re: Material & Mechanics Lien
Your lien is a possessory lien. It's only good if you hold on to the equipment. The finance company can't repossess it if you have the equipment secured such that the repo people would have to breach the peace in order to repossess it.
Let them know, by certified mail, return receipt requested, that you have a possessory lien and that they can have the equipment when they pay off the lien. Otherwise you'll have to take steps to sell the equipment at public auction.
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