What are the legal remedies available when a contractor fails to pay?

When a contractor fails to pay, the person that is owed money (the “creditor”) has certain legal remedies available. In Florida, these remedies are provided by the Construction Lien Law, which is designed to provide creditors with a mechanism to secure payment. One remedy available is the filing of a Claim of Lien, which is a legal document filed with the county in which the property is located. This Claim of Lien is essentially a public notice of a debt owed; it puts other potential creditors on notice that the property is already encumbered. Additionally, the Claim of Lien allows the creditor to demand payment from the owner of the property in order to satisfy the debt. Another remedy available in Florida is known as a “breach of contract claim.” This is a civil lawsuit against the contractor for failing to pay. In this lawsuit, the creditor can seek monetary damages for the unpaid debt, as well as attorney fees and court costs. If successful, the creditor can be awarded a judgment against the contractor, which can be used to enforce payment. Finally, the creditor can pursue collection efforts. This includes sending a demand letter, filing a lawsuit, or even garnishing wages from the contractor. All of these efforts, if successful, can be used to enforce payment on the unpaid debt. Overall, the Construction Lien Law provides creditors with legal remedies to secure the payment of an unpaid debt. These remedies can be used to put pressure on the contractor to pay the debt, and the creditor can take legal action if the contractor fails to comply.

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What are the legal remedies available when a contractor fails to pay?

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