How to Get a Bond to Cover a Lien

If working with a contractor on a construction project, this contractor can file a lien against your property if you fail to pay him for work completed. Paying a contractor is the easiest method to release a lien. But if you dispute a payment amount or don't have cash to pay a contractor, you can use a bond to release or cover the lien against a property. A bond is an agreement or promise to repay borrowed money issued by a surety bond company.

Instructions

1

Approach the local court. The court determines the amount needed to cover a lien and subsequently release the lien. Go to your local Circuit Court Clerk's office, and state your plan to acquire a bond to cover an existing lien. The court uses a particular formula to establish a bond amount, and this formula varies by local court.

2

Contact a surety company to complete an application for a lien release bond. The company will request financial information about your company (bank statements to assess the company's assets) and a copy of the lien. If approved, the surety company issues a bond to act as security for a lien, thus releasing the property from the lien.

3

File the surety bond with the court to discharge or release the lien against the property.