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General Contractor stopped paying any is shutting down without paying subs.

CaliforniaBankruptcyCollectionsLien Deadlines

Hi, I filed a preliminary notice through Levelset for a project with $60K balance and now I learned he stopped paying everyone and shutting down. Am I now completely depending on this lean and the property owner for this job or who will be responsible for the balance? what would you recommend I do now? Thanks! Mike Strix Inc 310-600-0027

2 replies

Nov 9, 2021

Mike, 

If you are within your time windows to file the lien, you would do that. Then you would foreclose the lien with 90 days of that, which takes filing a lawsuit. Those are actions against the property/property owner. 

You also have breach of contract rights against the person or entity that hired you. Those rights are different than lien rights. It would be worth it to talk to a construction attorney to make sure all your ducks are in a row and explore your options.

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Nov 10, 2021
Prior to filing suit you should consider letting a certified commercial collection agency licensed and bonded to collect in your State collect the debt on a contingency bases so first you aren't throwing good money after a bad account and if successful your problem is solved and you have your money. If collection is not made you can always file suit. Feel free to contact me for additional information. Best regards, Steve
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