Chapter 8 - § 8.3 PERFECTION OF MECHANICS' LIEN PERMITTED|EXTENSION OF TIME TO PERFECT — BANKRUPTCY CODE §§ 108 AND 546(b)

• Jurisdiction: Colorado

§ 8.3 PERFECTION OF MECHANICS' LIEN PERMITTED/EXTENSION OF TIME TO PERFECT — BANKRUPTCY CODE §§ 108 AND 546(b)

Notwithstanding the automatic stay and a debtor-in-possession or trustee's right to void perfection, the Bankruptcy Code does permit the holder of a not-yet-perfected mechanics' lien the right to perfect that lien under Bankruptcy Code §§ 362(b)(3) and 546(b), so long as the lienholder is permitted to do so under state law.⁹ However, under no circumstances may the lienholder enforce the lien or seek to collect on it so long as the automatic stay is in effect.¹⁰ Accordingly, if the unperfected lienholder's time to perfect ends during the bankruptcy case, the lienholder must file notice of its lien rights in the bankruptcy court under § 546(b) within the six-month period of C.R.S. § 38-22-110. Note that these provisions do not allow a supplier or contractor to perfect a post-petition lien as the statutes...