What the statutes mean

There is risk to a chiropractor who obtains a lien from a patient within 4 months of a patient filing bankruptcy if the chiropractor knows the patient was bankrupt at the time the lien was obtained. These liens can be invalidated. Liens accepted in good faith that have been properly recorded or filed are not affected. A chiropractor’s best protection is to obtain a lien at the beginning of a case before significant debt is accrued.

Statute excerpts

128.13 Liens given within 4 months of bankruptcy
128.14 Liens given in good faith

Liens given within 4 months of bankruptcy

128.18(3) A lien created by, or obtained in or pursuant to any action which was begun against, a person within four months before the commencement of proceedings for the appointment of a receiver herein, or the filing of an assignment hereunder, shall be dissolved by the appointment of a receiver or the qualification of the assignee, and the receiver or assignee shall be subrogated to the rights of the holder of such lien for the benefit of all creditors, if:

128.18(3)(a) It appears that said lien was obtained and permitted while the debtor was insolvent, and that its existence or enforcement will work a preference, or

128.18(3)(c) That such lien was sought and permitted in fraud of the provisions of this chapter.

Liens given in good faith

128.18(4) Liens given or accepted in good faith and for a present consideration which have been properly recorded or filed shall, to the extent of such present consideration only, not be affected by the provisions of this chapter.