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Bankruptcy Court Holds Michigan Does Not Recognize A General Common Law Landlord’s Lien on Personal Property of Tenant

The United States Bankruptcy Court for the Western District of Michigan recently held that Michigan does not recognize a common law landlord's lien on the personal property of tenants for unpaid rent. (In re Kentwood Pharmacy, L.L.C.)

However, the Court agreed that a landlord may be able to obtain a lien if there is a provision in the lease giving the landlord a lien on the tenant's personal property. For the lien to be effective, the landlord must file a financing statement under Article 9 of the Uniform Commercial Code.

Accordingly, landlords who want to take a lien on their tenant's personal property to secure payment of rent should include language in the lease granting the landlord a lien on the tenant's personal property, and should follow up by recording a financing statement.

© 2022 Varnum LLPNational Law Review, Volume II, Number 215
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About this Author

Randall J. Groendyk, Varnum law firm Creditor's Rights Attorney, Civil Litigation Lawyer
Counsel

Randy focuses his practice on creditor's rights law, including collections, bankruptcy, landlord-tenant, claim and delivery, foreclosure, and commercial and general civil litigation. His specialties also include Fair Debt Collection Practices Act and Fair Credit Reporting Act defense and compliance review.

Honors & Recognitions

Martindale-Hubbell® Distinguished™ Peer Review Rated

Professional Affiliations

ACA International

Commercial Law League of America

Grand Rapids Bar Association

Michigan Association of Collection...

616/336-6573
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