Business Debt, Collections Owner of a house we remodeled is refusing to pay our company

[michaelp]

I am a general contractor and the owner of a house (in Illinois) I remodeled is refusing to pay for the work completed. The work was completed 25 days ago. I filed a $20,000 mechanics lien on the house. The owner of the house has a closing coming up in 1 week. What are the chances he will not pay me at the closing and instead choose to place $30,000 in an escrow account until I force his hand? I'm assuming he can do this too and then I will have to litigate this in court? Is that correct?

 

[army judge]

I am a general contractor and the owner of a house (in Illinois) I remodeled is refusing to pay for the work completed. The work was completed 25 days ago. I filed a $20,000 mechanics lien on the house. The owner of the house has a closing coming up in 1 week. What are the chances he will not pay me at the closing and instead choose to place $30,000 in an escrow account until I force his hand? I'm assuming he can do this too and then I will have to litigate this in court? Is that correct?

There's nothing anyone can add, sir, as you've pretty much detailed the possibilities.
No one, but your client knows what he can do, again, you've deduced his options.

All I can add is that not to bank on receiving payment in the near future.
You appear to have the upper hand, unless his beef is with the quality of your work and/or performance of your employees.
This is much like Christmas, you know what might be in the box, but mom and dad make you wait. LOL
So, you're in the waiting mode.
You could speak with a couple local lawyers, just to ensure you're doing everything correctly.
Mechanics liens (or in your case, contractors liens) are very helpful.

Remember, the law distinguishes sub-contractors from prime contractors.

Just in case, here's how a contractors lien should be perfected in Illinois:

http://www.dimontelaw.com/illinois-mechanics-liens.html

http://constructionliens.uslegal.com/state-laws/illinois-construction-lien-law/

http://www.zlien.com/articles/how-to-file-illinois-mechanics-lien-get-paid/