I’ve been practicing in the construction law area, mechanic’s liens specifically, since the late 1980s. Over the years, I’ve represented clients on both sides: claimants seeking payment and defendants trying to protect their property interests. While both roles can be rewarding, I’ll admit this much: I lose a lot less sleep representing defendants.
Why? Because the deadlines in the Illinois Mechanics Lien Act (770 ILCS 60/1, et seq.) are unforgiving, often hard “drop-dead” dates. Miss one and you may lose your lien rights entirely. Defendants, on the other hand, often have time on their side. Time to spot defects that can’t be corrected once the clock runs out.
That ever-present risk is what keeps many claimant-side attorneys up at night.
A Recent Case That Offers Some Relief
A September 2025 decision from the Bankruptcy Court for the District of Idaho, In re Millenkamp Cattle, Inc., 2025 Bankr. LEXIS 2410, 2025 WL 2741445, offers a bit of comfort. While it’s not binding in Illinois, it provides persuasive reasoning that may ease one of those high-stakes deadlines.
Here’s the takeaway. The court ruled that a notice under 11 U.S.C. § 546(b) (sometimes filed in lieu of a foreclosure action against a debtor in bankruptcy) is not required when the lienholder’s action is purely enforcement, not perfection.
In plain terms:
- 546(b) applies when you need to perfect or maintain perfection of a lien after bankruptcy is filed.
- A mechanic’s lien foreclosure is an enforcement action, not a perfection action.
Therefore, it falls under the automatic stay (11 U.S.C. § 362(a)(4)), and the limitations period is tolled until 30 days after the stay ends (per § 108(c)(2)).
What This Means for Practitioners
If a party necessary to your mechanic’s lien action files bankruptcy:
- Consult bankruptcy counsel to confirm whether enforcement is stayed and whether tolling applies; and
- Document your timeline carefully. The 30-day post-stay period will be critical.
Bottom Line
Bankruptcies happen. But thanks to decisions like Millenkamp Cattle, practitioners may be able to sleep a little easier knowing one less “drop-dead” deadline may not be as fatal as it once seemed. Still, collaboration with experienced bankruptcy counsel remains essential whenever a key party enters bankruptcy.
This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.
Jim concentrates his practice in real estate-related litigation, with an emphasis on construction (including mechanics lien claims), as well as title insurance defense work. If you need assistance with a related matter, contact Jim.