Case Summary:
The debtor’s plan treated the creditor as unsecured.  The creditor contended that it had a mechanic’s lien associated with certain repair services performed on the debtor’s equipment.  The court interpreted Wis. Stat. § 779.41(1) to require that the mechanic retain “actual physical possession” of the property in order to maintain a mechanic’s lien claim.  As the services here were performed on the debtor’s premises, the creditor never had possession of the property and therefore had no lien.  The creditor’s claim was unsecured.

Statute/Rule References:
Wis. Stat. § 779.41 -- Mechanic’s Liens

Key Words:
Mechanic’s Liens
Security Interests -- Creation