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

In Texas, there are multiple legal remedies available when a contractor fails to pay. These remedies typically involve filing a claim or a lawsuit in a court of law. A contractor who has been wrongfully denied payment may file an affidavit of nonpayment with the county clerk in the county where the work was performed. This affidavit will notify the contractor’s creditor that the contractor has not been paid for the work. The contractor may also file a mechanics lien. This lien creates an interest in the property that was improved by the contractor. It entitles the contractor to payment for the work performed. In addition, a contractor may also file a breach of contract lawsuit to recover the unpaid amount. In this case, the contractor must prove that there was an agreement and that the other party failed to pay. Finally, a contractor may also pursue a debt collection lawsuit. This type of lawsuit involves filing a lawsuit in court to obtain a judgment against the other party. This judgment will legally obligate the other party to pay the amount that is owed. These are all remedies available to contractors when they are wrongfully denied payment for services they have provided. All of these remedies involve filing a lawsuit in court and require the contractor to be able to prove the debt.

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

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