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Can I still take actions like filing a judgement, lien or collection actions if general contractor filed for chapter 7

TexasBankruptcyMechanics LienMaterialsFinancing

We have reached out to the property owners and inquired about receiving some kind of compensation for the work that we did for their office, and they say they paid the general contractor which didn't pay us. Just want to get an understanding of how we failed here, and what to do to make sure it doesn't happen again.

2 replies

Apr 1, 2023

If the general contractor (known as the "original contractor" under Chapter 53 of the Texas Property Code - the law that governs mechanic's liens) has filed for chapter 7 bankruptcy, you can file a proof of claim in the contractor's bankruptcy, but cannot proceed with a suit against the debtor.

You should retain a construction attorney as you may still have rights against the retainage that the owner should have withheld from the original contractor. Perfecting a claim on the retainage could entitle you to file a mechanic's lien against the owner's property.

Good luck.

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Apr 14, 2023

FAILED TO TIMELY GIVE NOTICES AND FILE LIENS

TOO LATE

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