I'm a homeowner and the general contractor on our new construction home filed for bankruptcy. Subcontractors are now asking us (the homeowners) for payment and some have either filed a mechanic's lien or plan to file a Notice of Intent to Lien against our property. We are either going to sell the unfinished project or will need mortgage financing at completion of the house. In either case, we need clean title and all liens removed. What are our options here? If work was legitimately done, should we pay these subcontractors in order to remove and/or avoid the liens? Or will this somehow muddy the waters with the bankruptcy proceedings?
Based on the question, you need to sort out who did what work and determine whether they are entitled to payment. Depending on the situation, you may also be able to negotiate some discounts with subcontractors and suppliers, but the bottom line is that if they did their job then they added value to the project and the law permits them to demand payment. We are working with others in a similar situation, and there are no short-cuts. You must sort this out sub by sub, supplier by supplier, including how much each has been paid to date.
What you did not mention was whether you already paid the Bankrupt GC. If so, then you may be entitled to file a Claim against the Bankruptcy Estate, or even what is known as an "Adversary Complaint" in the Bankruptcy.
As has already been suggested in one answer, this matter requires a deep-dive by a qualified Construction Lawyer with Bankruptcy exertise as well. Best of luck. I hope this information was helpful.