By William C. Smith, Partner at Manning Fulton & Skinner, P.A.

Collections have never been as important — or as challenging — as now. North Carolina construction industry vendors have long held an advantage over other goods and services providers because they can impose liens upon real property improved by their efforts or upon funds in the contract stream. Three recent cases from the Bankruptcy Court of the Eastern District of the North Carolina have exposed limits to these rights and re-emphasized the importance of creditor diligence and proactivity.