diff --git a/README.md b/README.md
index aae8d8f6..4af432da 100644
--- a/README.md
+++ b/README.md
@@ -52,18 +52,18 @@ nnoremap <leader>n :LuaTreeRefresh<CR>
 
 ![alt text](.github/screenshot.png?raw=true "file explorer")
 
-## TODO
+## TODO 1
 - Tree creation should be async
-- better error checking when fs updates
 - sneak like cd command to find a directory
 - better default colors (use default vim groups)
 - give user option to choose for file generation command
 - command to find current file in the directory structure
+- refactor all `system` call to `libuv` functions, with better error management
 - create proper highlight groups or add highlight function to give the user ability to setup colors themselves
 - bufferize leafs of node being closed so when opening again the node, we open every directory that was previously open
-- use libuv functions instead of `touch` and `mkdir` in `create_file()` and allow file creation with path like `foo/bar/baz`
 - better window management: 
   - check tree buffer/window for change so we can avoid it being resized or moved around or replaced by another file
   - monitor window layout in current tab to open files in the right place
   - add `<C-t>` to open buffer in new tab
 > this might be a little hard to implement since window layout events do not exist yet
+
diff --git a/lua/lib/fs.lua b/lua/lib/fs.lua
index 14967b77..29a17f89 100644
--- a/lua/lib/fs.lua
+++ b/lua/lib/fs.lua
@@ -17,16 +17,7 @@ local function link_to(path)
     return luv.fs_readlink(path) or ''
 end
 
-local function check_dir_access(path)
-    if luv.fs_access(path, 'R') == true then
-        return true
-    else
-        api.nvim_err_writeln('Permission denied: ' .. path)
-        return false
-    end
-end
-
-function print_err(err)
+local function print_err(err)
     if err ~= nil then
         api.nvim_command('echohl ErrorMsg')
         api.nvim_command('echomsg "'..err..'"')
@@ -34,17 +25,32 @@ function print_err(err)
     end
 end
 
-local function rm(path)
-    local stat = luv.fs_lstat(path)
-    if stat and stat.type == 'directory' then
-        return luv.fs_rmdir(path, vim.schedule_wrap(print_err))
+local function system(v)
+    print_err(api.nvim_call_function('system', { v }))
+end
+
+local function check_dir_access(path)
+    if luv.fs_access(path, 'R') == true then
+        return true
     else
-        return luv.fs_unlink(path, vim.schedule_wrap(print_err))
+        print_err('Permission denied: ' .. path)
+        return false
     end
 end
 
+-- TODO: better handling of path removal, rename and file creation with luv calls
+-- it will take some time so leave it for a dedicated PR
+local function rm(path)
+    system('rm -rf ' ..path)
+end
+
 local function rename(file, new_path)
-    luv.fs_rename(file, new_path, vim.schedule_wrap(print_err))
+    system('mv '..file..' '..new_path)
+end
+
+local function create(file, folders)
+    if folders ~= "" then system('mkdir -p '..folders) end
+    if file ~= nil then system('touch ' ..folders..file) end
 end
 
 return {
@@ -55,4 +61,5 @@ return {
     is_dir = is_dir;
     rename = rename;
     rm = rm;
+    create = create;
 }
diff --git a/lua/lib/fs_update.lua b/lua/lib/fs_update.lua
index 284da5d6..c4f2c4f4 100644
--- a/lua/lib/fs_update.lua
+++ b/lua/lib/fs_update.lua
@@ -3,12 +3,11 @@ local api = vim.api
 local update_view = require 'lib/winutils'.update_view
 local refresh_tree = require 'lib/state'.refresh_tree
 local refresh_git = require 'lib/git'.refresh_git
-local rm = require 'lib/fs'.rm
-local rename = require 'lib/fs'.rename
 
-local function system(v)
-    api.nvim_call_function('system', { v })
-end
+local fs = require 'lib/fs'
+local rm = fs.rm
+local rename = fs.rename
+local create = fs.create
 
 local function input(v)
     local param
@@ -17,20 +16,27 @@ local function input(v)
 end
 
 local function clear_prompt()
-    api.nvim_command('echo "\r' .. string.rep(" ", 80) .. '"')
+    api.nvim_command('echo "\r' .. string.rep(" ", 200) .. '\n"')
 end
 
 local function create_file(path)
-    -- TODO: create files dynamically
     local new_file = input("Create file: " .. path)
-    local new_path = path .. new_file
     clear_prompt()
-    -- TODO: replace system() calls with luv calls
-    if string.match(new_file, '.*/$') then
-        system('mkdir -p ' .. new_path)
-    else
-        system('touch ' .. new_path)
+
+    local file = nil
+    if not string.match(new_file, '.*/$') then
+        file = string.reverse(string.gsub(string.reverse(new_file), '/.*$', ''))
+        new_file = string.gsub(new_file, '[^/]*$', '')
     end
+
+    local folders = ""
+    if #new_file ~= 0 then
+        for p in string.gmatch(new_file, '[^/]*') do
+            folders = folders .. p .. '/'
+        end
+    end
+
+    create(file, folders)
     refresh_git()
     refresh_tree()
     update_view()