Construction professionals at work

Things looking up in the New Orleans economy?  Perhaps, according to a report from the New Orleans City Business Newsroom that the New Orleans area saw a near 10% drop in bankruptcy filings in April 2012.

A few weeks ago, we ran a blog series here at the Construction Payment Blog about the relationship between mechanics lien claims and the bankruptcy process. There are a lot of legal nuances here, but the short story is that in the face of bankruptcy, filing a mechanics lien can be a very effective and optimistic way to recover.

However, that doesn’t mean anyone is sitting around hoping for a bankruptcy.  To the contrary, debts are almost always more likely to be collected when the parties are not in bankruptcy.

That’s why news of such a dramatic drop in bankruptcy filings should be music to the ears of New Orleans contractors, suppliers and equipment rental companies.  Especially in light of the expected $28 million + in public construction projects set to begin this summer in New Orleans.

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